22 Jun 2021
Updated on December 29th, 2022
Digital Wallets: Talk of the Town
In the blink of an eye, the arrival of COVID-19 turned the world upside down. However, we did not take much time to adjust to the new normal; instead, we got comfortable with everything that started happening online.
Suddenly, we started adopting the work from home culture, ordering groceries while sitting comfortably at our couches, started spending more time binge-watching and whatnot!
Additionally, the brick-and-mortar stores temporarily shut down due to the ‘no contact’ and ‘social distancing’ policy. Therefore, these businesses shifted online to keep their stores running and pave the way for monetization.
Initially, cash was used in exchange for commodities; however, 2020 saw a rise in digital or e-wallets. Technology played a significant role in the evolution of online payment gateway, giving rise to more and more mobile apps for payment digitization.
Do you know?
It is not so surprising, but cash will no longer remain the most common payment method by 2022.
About Digital Wallets
In simple words, digital wallets are an online service that lets individuals transact using their mobile phones.
These are the dedicated apps that save a user’s bank-related information. Whenever a user initiates a payment, the amount gets deducted instantly after following a step or two of security authentication.
Why are Digital Wallets Gaining Popularity?
1. Offers Convenience
Digital wallets have eliminated the need for carrying around a wallet stacked with multiple debit or credit cards. In fact, even if someone forgets their wallet at home, money is right there in their hands in the form of a mobile phone.
2. Secure Transactions
To keep digital wallets from unauthorized use, authentication steps can be set to lock out the apps. A thumbprint or face recognition can be used for the same purpose.
3. Extension of Daily Lives
Users use their mobile phones to carry out activities that involve transactions. Be it paying bills or recharging phones; digital wallets are the perfect missing piece to the puzzle.
4. OTP Authentication
Numerous digital wallets register a user’s account by saving their card details. Therefore, whenever a user tries to make a payment, an OTP is sent to the registered mobile number for authentication. Once the accurate passcode is entered, the transaction process completes.
Benefits of Digital Wallets to a Business
What would happen if all the businesses of today start adopting digital wallets?
Take a look!
1. Will Be Able to Offer Enhanced Customer Experiences
If businesses are looking forward to reaching more customers, build an easier way of spending for them, by letting them transact via mobile phones. A seamless customer experience is what the users need!
2. Smooth Transactions Across All Channels
As mentioned above, nobody carries a physical wallet nowadays. Therefore, if the customer is using the dedicated mobile app of your business, you must integrate an option of e-wallets along with other modes of transactions. It’ll offer flexibility to customers and better engagement with your business.
3. Elimination of Frauds
Incorporating AI and ML into your digital wallets can help your business monitor frauds and notify you about the same. It safeguards user’s data and builds trust between your business and them.
Types of Digital Wallets
There are six types of digital wallets, and you can choose any one of them which suits your business the best.
1. Cryptocurrency Wallet
A physical tool that stores private and/or public keys for crypto transactions is known as a cryptocurrency wallet. Additionally, it encrypts all the information, which makes it a secure experience.
2. AI-Powered Wallet
AI-powered wallets consist of well-designed admin panels, also integrated with chatbots that can solve any sort of payment issues. Furthermore, AI cuts down the fraud transactions.
3. NFC-Based Wallet
Near-Field Communication or NFC transfers data wirelessly via laptops, smartphones, and other devices over a short range. Similarly, NFC-based wallet payments initiate data transfer to the location gadget instantly, leaving no scope for theft or data leak.
4. Foreign Remittance
These wallets offer great convenience to users who want to transfer money internationally. The best part is that these wallets do not charge unnecessary charges for international transfers.
5. Virtual Card
A card consists of a unique credit card number that enables secure transactions without revealing the primary number to the merchant.
6. Biometric Wallets
It uses biometric authorization to eliminate the risk of data theft or fraud. These technologies include:
- Facial Recognition
- Retina Scans
- Fingerprint Recognition
Digital Wallets are the Future
Undoubtedly, digital wallets are the new hero when it comes to online transactions. Even though these wallets have been there for a long time, they have gained emphasis in the past 12 months.
Developing a digital wallet app is a great way for monetization, seeing more and more people opting for the new approach. In fact, that’s a great idea!
TAKE YOUR TIME AND THINK ABOUT IT!
If you’ve already made up your mind, reach out to a mobile app development company to receive efficient solutions.