Digital wallets – how helpful are those for the merchants?

June 21, 2022 admin

The world has gone online. We’re witnessing people getting married virtually, so it isn’t a big shocker to see them use digital commerce for payments. Virtual money and paying through online transactions have become quite a norm in today’s society.

Businesses are going to any extent to make the life of the customers easy and flexible. Do you know? People can now choose to pay later, even for fast food and simple groceries. No, it isn’t about credit cards but the options of ‘buy now, pay later’ schemes that corporates are actively publicizing.

How does this affect any small businesses?

That’s a logical question, and the answer is also rational.

When big corporations bring change, it becomes inevitable for the small & medium industries to adapt to the situations.

To grow the business firmly, one has to offer flexibility to the customer, so they prefer you over competitors.

By the end of 2021, 1.3 billion consumers have adopted digital payment methods, and smartphones have become the world’s number one online shopping and payment device.

Businesses make a difference by integrating payment methods to increase sales and ensure successful conversions.

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Now, let’s get into details about how it does and doesn’t benefit the merchant.

Pros

Backing contactless payments

Over 60% of the customers prefer to go for contactless payment to reduce any COVID-19 transmissions and to protect themselves from other deadly viruses.

It is fast, safe and needful – given the current situation of rising mutations of the Coronavirus.

A contactless payment communicates between the smartphone and the payment terminal, which is powered by NFC technology. It is hassle-free and can connect to multiple bank accounts. So, your money gets directly deposited into your bank accounts.

No more nosy customers

Just as no fingers are of the same length, we must also acknowledge that no customer is the same either. Whether it is a customer walking through your offline store door or the one checking out your online website.

An abandoned cart is one of the most common issues the business owner faces. The problem many clients face is the payment failures at the gateway. It leads to cart abandonment. By using digital wallets, the friction can be cut by half or even more!

Protip: Instil call-to-action buttons on all of the pages of your website and offer different payment options to allow payment flexibility to the buyer.

Cons

There are multiple pros than cons when it comes to digital payments. One of the most crucial subjects we face is the technical issues that come with the integration.

Not every merchant is well equipped to accommodate every e-wallet service in the market. Each has its own requirements that need to be fulfilled by the merchant.

Also, having too many integrations requires more effort, time and money. Big conglomerates might afford them, but it becomes difficult for small businesses to manage the fees and other charges. Thus, it limits the customer’s purchasing ability.