Mobile wallets make transactions more efficient.
We have all become so attached to our phones that any idea or technology related to it is automatically viewed as a success. And that is why mobile wallets made a worldwide buzz after Apple Pay‘s creation in 2014. It is a mobile payment app that facilitates card-less and cash-less transactions. After that, Google, Samsung and all other competitors followed with their very own platforms.
What are mobile wallets?
Mobile wallets refer to payment services performed with the use of your mobile device. This will allow you to store credit card information on your smartphone, tablet, or smartwatch. Your mobile device becomes an instant ATM machine. This way, you do not need to carry your credit card with you all the time.
Mobile Wallet Consumer Adoption
Despite the initial frenzy, mobile wallets have not taken the consumer world by storm. A study by RFi Consulting found that Australians seem reluctant to use mobile wallets. This result was attributed to the convenience of contactless credit and debit cards. Moreover, there are instances of inconvenience when it comes to finding the appropriate card from the right bank to connect with the right phone.
However, industry experts remained optimistic about the potential of mobile wallets. In India and China, mobile payments and wallets are becoming popular. About one-third of the RFi respondents are already using the technology. While for Singapore, the statistics are even higher for more than one out of three are already using mobile wallets.
Why Use Mobile Wallets?
Once the initial hurdles of transitioning consumers from traditional payment systems are resolved, consumer adoption is expected to grow exponentially in the next three to five years. The following are some advantages offered by mobile wallet:
Ease of use
Consumers can create a digital copy of their credit cards, debit cards and bank accounts on their device. You can use it without filling in card numbers and passwords every time. Just tap your phone on the device and then scan your fingerprint to secure your payment.
Convenience and accessibility
You don’t need to carry a wallet for cash and card, all you need is your mobile device. You can pay for purchases or transfer money anytime.
Better management of finances
Mobile wallet allows synchronisation of information from multiple platforms. Therefore, you can link your bank accounts, credit and debit cards, mobile accounts and bills under a single platform.
Customer loyalty programs
Businesses can quickly offer rewards, discounts, and bonuses via these apps. These benefits are incentives to the clients and therefore it allow for more customer engagement.
Enhanced brand awareness
Customers are constantly looking at their mobile devices. So, by having a mobile wallet, you are increasing the opportunity to push your brand to their awareness.
Gain consumer insights
Track your customer’s data usage, like what sort of items they buy and where they purchase them. You get inside information on them without lifting a finger.
You position yourself ahead of the pack
Experts believe that the mobile wallet game will hit the $186 billion mark come 2018. And as the digital age contentious to drive the world market, Apple Pay and mobile wallets will eventually cement its place in the world of banking.
Evidence shows that more people are slowly embracing the use of mobile payments. The day when cash and credit and debit card payments have become obsolete may come sooner than we thought. Businesses should aspire to keep up and embrace this technology.
To know more about Mobile Wallets, visit our post on Apple Pay and its Many Benefits for Businesses and Consumers.
