Could digital wallets be the new ‘normal’?

Between March 2020 and March 2021, monthly digital wallet transactions increased by 90%. This evidence suggests that digital wallets (also known as mobile wallets or an eWallet) and contactless payment methods are the way of the future. So, why are consumers ditching physical wallets for digital wallets?

A better in-store shopping experience

Digital wallets have provided convenience to both businesses and consumers, especially during a pandemic where a contactless option for anything is almost always a preference, including contactless payments. Digital wallets also eliminate the physical need for consumers to carry their driver’s license and other identification cards, debit and credit cards, loyalty cards and other plastic cards as these are all stored electronically. Consumers can simply ‘tap and pay’ or scan a QR code to make in-store purchases, eliminating payment using dirty banknotes and rusty coins, which can be incredibly unhygienic.
Furthermore, carrying a physical wallet means that shoppers need to fit one more item in their pockets or bag.
Thus, the shopping experience is much more convenient for consumers.

Drive higher traffic, sales and loyalty

Some of the best digital wallets for consumers enable them to earn and redeem loyalty points for rewards, convert points to frequent flyer points and even view and access exclusive geo-targeted promotional offers. Geo-targeting is especially helpful for brick and mortar businesses wanting to increase foot traffic by only showing special offers to customers within a defined geographic area. Furthermore, geo-targeting helps businesses create highly targeted and personalised experiences for their customers. This approach enables consumers to save and businesses to increase foot traffic, sales and loyalty.

An extra layer of security

Imagine a customer losing their physical wallet. Bank cards that don’t require a PIN can be maxed out almost immediately. Now imagine a customer losing their smartphone which contains their digital wallet, which is protected by a password. The digital wallet is not accessible to whoever picks up the phone.
But it doesn’t just stop there. Industry-leading digital wallets use Know Your Customer and advanced biometric facial scanning technology to verify an authorised user’s identity in order to gain access. Therefore, digital wallets provide an extra level of protection over physical wallets. Again, in a world where much of our lives live on our smartphones, security and privacy are paramount.

The verdict: digital wallets are here to stay

Digital wallets have quickly taken the world by storm. They provide a better experience for the consumers, can help increase sales for businesses, and offer more security for the businesses and consumers. If your business is looking to implement a digital wallet solution, then EonX can help. Contact us today, and we'll help you get set up with everything you need. We hope to hear from you soon.