The 5 Ws of digital wallets
With the rise of fintech trends such as cashless payments, online transactions and mobile commerce, we are seeing a corresponding increase in the adoption of digital wallets by businesses and consumers.
Digital wallets are fast becoming the preferred method of payment for consumers, both online and in physical stores. Some of the biggest names in tech, such as Google and Samsung, have spawned successful wallets, and many more are trying to follow suit. Indeed, the popularity of digital wallets is undeniable: by 2024, 4 billion people will use digital wallets and the size of the global mobile wallet market is expected to reach $ 3.6 billion.
What are digital wallets?
Digital wallets, or electronic wallets, are virtual mobile wallets. It’s essentially the same as carrying a physical wallet, except without the hassle of a bulky wallet filled with cash, cards, old receipts, and other accessories. These are mobile apps that serve as an online payment tool and virtually store your cards securely so you can make payments anytime, anywhere.
Why bother with digital wallets?
One of the most obvious and immediate benefits of e-wallets is convenience. With just one app, you can instantly transfer money from your bank account to your digital wallet, store your credit cards, and make instant contactless payments anywhere, anytime of the day. It makes the e-commerce experience smoother.
Mobile wallets are also highly secure. Most digital wallets contain multiple layers of security and encryption so that only you can access and use your sensitive financial information. In fact, digital wallets are much more secure than everyday physical wallets because no one other than you can access your e-wallet.
Many e-wallets even offer rewards and savings such as cash backs, lower exchange rates, and lower transaction fees than many mainstream banks.
Merchants who often struggle with consumer cart abandonment can rest easy knowing that digital wallets provide a solution to this problem. With digital wallets, consumers no longer need to go through the tedious process of re-entering credit card details and shipping information. Now, with just one button, consumers can effortlessly and securely complete any transaction.
In short, digital wallets are secure, convenient, easy to use and easy to implement. These are just a few of the factors contributing to the growing global adoption of e-wallets.
Who are digital wallets for?
Whether you are a consumer or a merchant, digital wallets are a great payment tool to get involved.
As a consumer, digital wallets allow you to consolidate all kinds of finances, such as payments, credit cards, expense tracking, and in some cases even stocks and crypto trading!
If you are a merchant, the increasing adoption of digital wallets will make your business more accessible, especially as the world’s population becomes more tech savvy. When it comes to online transactions, consumers demand ease, convenience and security, and digital wallets deliver all of these benefits.
Where and when can I start?
Digital wallets can be found on all app stores. They’re easy to download and set up, so you might even become the proud owner of a digital wallet within an hour! Once your wallet is set up, it will always be close at hand.
If you are a business owner and want to build a digital wallet, this might not be the easiest process.
Developing a mobile wallet from scratch is an expensive and time consuming process. For starters, building a mobile wallet requires a great team of developers who understand your business vision and can execute it flawlessly. As any business owner knows, building such a team is no easy task. Once you’ve secured your unicorn team, it can take you up to two years to finalize your digital wallet prototype and eventually bring it to market.
For these reasons, a good starting point would be white label digital wallet solution. This way, you leave the development of the mobile wallet to the experts who have already developed a mobile wallet solution, while you and your team can continue to deliver unique value to your business and its customers.
With a white label digital wallet solution, you can tailor an e-wallet to the exact needs of your business. You get the benefits of an e-wallet, but without having to hire and pay for a whole new team of developers and fintech experts. The beauty of white label digital portfolios? You can have your own digital wallet product within months or even minutes.
Whether you are a consumer or a merchant, stay ahead of the curve by getting involved in digital wallets today.