Mobile wallets have already gone mainstream for consumers. The trend is being consolidated as many merchants are equally playing the game by offering various services and modes of payment related to the mobile wallet. In this vein, e-commerce and mobile transactions are absorbing a bigger and bigger part of the expenditure of consumers, and retailers who have not adopted the mobile wallet should seriously consider integrating this multi tool into their business strategy to stay competitive.
A tailor-made approach is possible
Every merchant is different from each other and it is wise to tailor-make a wallet that responds to the needs of their respective clients. With the various tools and technology available at hand today, it is rather easy to customer-create a specific digital payment experience. Retailers have the option to deploy a full digital wallet right away or adopt a phase-by-phase approach for implementation.
Three major reasons retailers should adopt the mobile wallet
Apart from enhancing customer experience, the mobile wallet presents some major advantages for the retailers themselves.
Lowering costs and improving security
Fraud goes hand in hand with digital commerce. It is a fact that as digital commerce expands itself, the types of fraud swells on a parallel note. Data breaches are common and can entail massive costs for the retailer. Figures show that the average data breach may cost around $ 4M for the concerned retailer.
Adopting the mobile wallet is a boon in terms of both costs and security for the retailers. The latter can bring payments in-house and in-app. Theft of customer payment credentials, of identities as well as of transaction histories can be avoided. Retailers can layer security methods according to their own requirements while maintaining the payment system highly convenient for consumers.
At the same time, various methods of security are being created and deployed: app security, biometric authentication, tokenization, and device authentication, just to name a few. Retailers do not have to be security experts as there are multiple platforms available allowing a combination of various layers of security. In the same breath, choosing their own platform will give them the opportunity to rely on a system that can be maintained and updated by experts as and when needed, aligned to evolving security standards.
The mobile wallet is a means to offer added value
Clearly, customers do not feel excited about downloading multiple payment apps on their mobile again and again. It can be said that with so many options available, certain clients may easily feel like rolling out of the overwhelming digital experience. However, this scenario may represent a great opportunity for retailers who can use it in their favor. A great example is Starbucks that can be viewed as the most successful mobile wallet currently. The reason behind this success is that they use the wallet to offer added value to their clients. The latter can order ahead, for example. The payment system in itself is very user-friendly. Retailers can adopt the same strategy and offer vouchers in a single payment or discounts for using the app as well as personalized deals, for instance. Digitizing receipts is convenient for customers and retailers themselves as it implies cutting cost on paper and plastic.
Retailers moreover have the opportunity to integrate commerce features like store locators, price comparison options, shopping lists and wish lists to encourage consumer adoption.
Mobile wallets guarantee fewer checkouts
Customers do not like waiting in queues at the checkout. Mobile wallets have the power to fix this retail pain. This furthermore presents an advantage to retailers themselves who can save by reducing infrastructure and maintenance costs related to check-out points. A faster check out also implies fewer cart abandonment and more happy customers who are sure to be back.
The mobile wallet equally allows for staff to be redeployed as they no longer have to stay at the checkouts. Instead, retailers may include mobile point-of-sale (mPOS) systems making it possible for customers to pay from wherever they are in the store rather than waiting in line. Such an enhanced customer experience can certainly be a boosting factor in driving purchases and ensuring the loyalty of satisfied clients.
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