Digital wallets are expected to become a major player in the online payment industry, as consumers constantly continue to look for additional easier and quicker ways to purchase goods and services online.
So, let’s find out what exactly this term means. A digital or electronic wallet is a payment method that is used via any device which is connected to Internet, a software that holds digital cash, and a digital certificate with a digital signature, as well as billing, shipping, and payment information for online transactions.
The electronic wallet makes online shopping easier and faster than ever before that is why it is becoming more and more popular and widely used.
By storing consumer’s payment information safely and compactly, electronic wallets diminish the need for an actual wallet. Also, digital wallets are a potential benefit to companies that collect consumer data as the more companies know about their customers’ purchasing habits, the more effectively they can satisfy their needs.
What are beneficial features of digital wallets?
Money from the electronic wallet online account can be spent for any kind of online goods or services anywhere in the world.
Easiness of managing the account from mobile phone or any device connected to Internet.
No fees for transferring money and no membership fee.
Minimal setup and easiness of use. Once the software is installed on consumer’s smartphone or computer, he starts by entering all the pertinent information.
The digital wallet is now set up and while the consumer is purchasing something on online store, the digital wallet software has the ability to automatically insert the necessary information in the online payment form.
By default, most digital wallets prompt when the software recognizes a form, if you chose to fill in the form automatically, you will be prompted for a password. So unauthorized users have no possibility to see consumer’s personal information stored on a particular computer or device.
Secure method of transferring money as customer’s information is encrypted or protected from any fraudulent activity by a unique software code.
Digital wallets give the owner of online store the possibility to speed up customer checkout process. The experts say that upwards of 25% of customers abandon online purchases if they feel that the order form is too complicated or confusing.
By using electronic wallet retailers enable shoppers to purchase more quickly and easily and take advantage of impulse purchases and the psychological advantage of not using cash or credit card.
The consumer feels that everything is under control by receiving emails or SMS notifications after every transaction.
Although a wallet is free of charge for consumers, vendors charge merchants for wallets. Some wallet vendors take a percentage of every successful purchase directed through their wallets and charge merchants a flat fee.
As you can see, all the above listed numerous benefits of the electronic wallets are truly convincing and that is why it is natural that they are so popular all over the world.