Now more than ever, online retailers need to create immersive and engaging mobile shopping experiences without any obstacles to purchasing.
And believe it or not, payments play a big part in these experiences.
If it wasn’t for convenient mobile payments, eCommerce wouldn’t be where it is today. In 2020, mobile wallets were responsible for a whopping 45% of global e-commerce payment transactions. It is also the most popular payment method for online shoppers.
Since e-wallets are changing the payment landscape in the eCommerce industry, it’s probably a good time to understand everything there is to know about it.
What is Mobile App e-Wallet technology?
An e-Wallet Mobile App is a financial tool that allows companies and individuals to exchange money via mobile devices. The idea is to promote the convenience and ease of access that mobile devices offer.
The pace at which consumers are embracing e-wallet payment methods for online shopping is commendable. It is predicted that by 2024, 50% of all payments will be made via digital wallets.
Some of the top names you must’ve heard in the mobile wallet domain are Apple Pay, Samsung Pay, PayPal, and Google Pay which are broadly accepted by eCommerce businesses large and small.
Types of mobile app e-wallet
Closed e-Wallets
These are the types of wallets created exclusively for a particular brand. They can only be used to transfer funds between the user and the wallet issuer and not for making any other forms of payments online. Examples include Walmart Pay.
Semi-Closed e-Wallets
These wallets provide more flexibility as compared to closed wallets. The users can use these wallets for making payments only to those stores which have partnered with the e-wallet company to use their services.
Open wallets
These wallets are the most common where you can make payments to any other e-wallet using a single platform. One can install them from Android or iOS to make multiple transactions to different merchants. Examples include Google Pay, PayTM, Amazon Pay, etc.
Are eWallet Payments Secure?
A big yes. The technologies used for mobile payments make them secure, even more so than traditional card payments as mobile wallets use encryption and tokenization to protect sensitive payment data.
Other technologies like Near-field Communication (NFC) and QR codes allow customers to make contactless payments and facilitate the secure exchange of tokenized payment credentials. Here are some more reasons why mobile payments are secure:
- It’s imperative to ensure that mobile eWallet is able to encrypt all the transactions and keep the data secure. A professional GRC assessment helps in ensuring reliable risk management and data governance. Afterall, a secure mobile eWallet improves user experience which in turn help the brand retain users and reap higher revenue
- Mobile payments make it easier for customers to track their payments via their smartphones.
- Third-party payment apps like PayPal often require users to sign in before making payments adding a layer of authentication.
Benefits Of E-Wallet App Development
Promotes Convenience in Payments
Mobile users are exactly that: Mobile. So incorporating a payment method that facilitates users to make secure payments through their smartphones would not only be wise but also profitable.
And when we talk about convenience, it isn’t just for the customers but also for you. You can also use the same method of payment for your delivery service providers and vendors and pave the way for smoother bill payments.
Reduces Cart Abandonment
Payments sometimes are the only barriers to closing sales. 7% of shoppers abandon their carts because they don’t have enough payment options. Since a lot of shoppers are already using mobile wallets, providing that option increases their chances of buying and completing their purchases.
Low transaction Fees
Credit card transaction charges are comparatively higher than e-wallets. Even the hidden charges in digital wallets are low and merchants can also issue their own cards.
Quick Tips to Prepare your eCommerce Store for Mobile Payments
- Accept popular mobile wallets to provide more payment options on mobile
- Simplify Checkout forms to make it convenient for customers
- Reduce the number of steps in payments to hasten the payment process
- Offer multiple third-party payments and traditional payment options to not lose out on a few customers that use them
- Consider the differences in countries that you operate to facilitate payment methods that are popular there.
Wrapping Up
Mobile payments aren’t the future anymore. They’re the present. Incorporating them into your eCommerce store will not just dictate your sales but also the kind of relationships you want to build with customers in the future. So don’t let the minute technological hurdles stop you from optimizing the checkout process and ultimately the buyer’s journey as a whole.
