The world of digital wallet and mobile payments are evolving. Yes! You have heard it right. It seems like only yesterday that we were talking about that new technology to have rocked the business world, but now it seems to have already outgrown the novelty and has started to define itself in a more evolved way. The digital wallet revolution has not exactly behaved the way that was expected with only 13% of smart phone owners having a digital wallet. Majority of them who own the app do not use it regularly.
But that scene is going to change. A report in the Business Insider reported that the volume of mobile payments will increase to a $503 billion in the future with a 56% of the people using it in the US alone. The countries like Sweden, Singapore, France, Canada, the Netherlands, Belgium and the U.K. have already started the process of evolving into a cashless society. These countries will be closely followed by countries like Australia, Brazil, India and Africa.
It is true that digital wallets have a long way to go to reach a state of perfection. Security, Compatible Vendors, are some of the things that still needs to be worked on. But it cannot be denied that the digital wallets and mobile payments are changing the way people make payments and also has the potential to break through just payments because of the way that it is evolving. This is definitely something that would benefit both business and consumers alike.
Deciphering Digital and Mobile Wallets
To put in lay man’s words, a digital wallet is simply the tokenization of data. Digital wallets are rightly used for payments but it can also be used to issue digital rewards, identification, etc.
Mobile wallets on the other hand is the mobile version of a digital wallet. Customers who are used to a mobile or digital wallet has the convenience of doing away with carrying a bulky wallet. Along with it one also does not need to worry about forgetting details like one’s cash, credit card or ID at home. The fact that all that information is stored on the mobile phone makes this possible.
The second benefit that consumers have with a mobile wallet is that one can save a lot of time. With the use of a mobile wallet, a consumer does not need to insert a card into an EMV terminal. He/she can simply swipe and go. Then there are those platforms where the customer need to race against time and purchase or make a payment before the session expires. A digital wallet frees one from this rush too because of the instantaneous payments that can be made online with the digital wallet.
Talking about purchase online, it would be important to update that digital wallets also come with customer perks. This includes promotion, cash back rewards and the feature that helps a person to keep a track of one’s accounting easier. The fact that these features are convenient makes it all the more alluring for customers. One can easily split bills with friends, pay bills, etc. The businesses can also have an access to funds immediately topped with the perk that comes with saving money because of a lack of third parties. It also works to provide a business with access to real-time data and maintain a competitive edge. A business can improve customer experience with the use of digital or mobile wallets because one can provide a fast and secure payment to them.
The Future of Digital or Mobile Wallet
The evolution of digital or mobile wallet is going to change how you make payments. It is important that entrepreneurs keep a track of the evolution and shape one’s company in a way that helps it to accommodate the change. The future of a digital or mobile wallet will not be limited to the features of the finances alone. The evolution of the digital wallet will take the features to break through beyond the tasks of simply transferring funds electronically or swiping one’s smartphone over a check out terminal.
The big guys of finance namely JPMorgan Chase & Co., Bank of America Corp., Wells Fargo & Co. and U.S. Bancorp, have come together to launch a joint venture called the clearXchange.
What is clearXchange?
It is a platform that allows customers to transfer funds to another bank account with the use of their phones alone.
This is a major step that clearly shows how the digital wallets are affecting the business world.
Secondly the traditional banks are also creating digital wallets that allow the customers to review one’s account, establish budgets and also transfer funds via social channels like the Facebook. A mix of Internet of Things to this evolution and we saw wearables like watches, writsbands or jackets being used to make payments.
The mix of the Blockchain Technology when used with digital wallets will transform the whole thing into a wonder through which one can purchase high end items; pay mortgage, utility, education and medical. One can also make portfolio shifts, make donations or fundraising, can work on real estate closings and titles and also include payrolls.
The business world and the world at large is being taken towards a cashless economy with the evolution of the digital wallet. The future holds a world of financial transactions where payments are quick, convenient and secure. The digital wallets are going to cross the threshold of finance and move beyond smartphones and finances. The future will see the world use digital wallets to do everything from monitoring accounts in real-time to using Blockchain technology to transfer money and real estate titles. Entrepreneurs who want to stay ahead in the business game must make sure that they are aware of the evolution and are also shaping their business in a way that can accommodate the evolution of the digital wallet. The future of finances and beyond belongs to this evolution and entrepreneurs must learn to evolve their business to be successful.