As the payment industry quickly evolves, new opportunities for using e-wallets in business spring like mushrooms. Spurred by the pandemic, customers and companies started looking for ways to shift from cash to contactless. Thus, e-wallets became one of the most convenient alternatives to traditional payments.
As a result of the increased consumer demand, more and more e-wallet advantages are gaining ground. Below, we will explore how the technology developed, the various digital wallets, and their benefits for growing businesses.
What Is An E-Wallet?
An e-Wallet is an online service or app that enables shoppers to execute digital transactions. People use digital wallets to store their financial assets and information and then make payments online. Or they can use digital apps on smartphones to ‘tap’ them at stores and purchase goods.
The process of using an e-wallet starts with the users depositing funds on their accounts. To this end, they can use any of the supported methods like bank transfers, cards, or cryptocurrencies. Once set, clients can use balances to pay for various products and services or transfer money to others.
Today, e-wallet advantages and functions outnumber those of conventional transactions. Unlike physical wallets that can get lost or stolen, digital ones offer more secure financial services. Online payment platforms protect users’ funds by incorporating robust security features.
Digital wallets can also help to authenticate the credentials of users. By doing so, companies can verify the age when someone’s buying alcohol. Cryptocurrency e-wallet advantages go a step further and allow users to keep private keys for bitcoin. We’re on the verge of transferring to a one-stop solution that facilitates budgeting within a single platform.
A Brief History Of E-Wallets
The origin of digital payments dates to 1997, thanks to Coca-Cola. The company gave rise to vending machines that let shoppers send text messages to make payments. Following this breakthrough, people could use mobile devices to buy tickets, book hotels, and order food. PayPal was the pioneer in the mobile wallet industry by launching its electronic money transfer service in 1999.
In 2011, Google saw the importance of e-wallet advantages and introduced its product to the world. Supported by NFC technology, it allowed people to pay, get coupons, and join loyalty programs. The onset was modest since only one phone model at a few merchants supported Google’s e-wallet.
In 2012, Apple developed Passbook for purchasing tickets, boarding passes, and coupons. Two years later, Apple Pay launched in the US and soon spread to the rest of the world. 2015 was another vital year since it brought Samsung and Android Pay.
Mobile wallet payments grabbed 21.5% of all POS transactions made in 2020. Also, about 1.48 billion consumers could enjoy e-wallet advantages in the pandemic timeframe.
Various Digital Wallets On The Market
Thanks to the diversity of e-wallets, people can select what suits them best to store and process various data and assets. Let’s take a quick look at the most widely used systems.
Near Field Communication enables wireless transfers through digital devices for secure data transmission over a short-range (usually 4cm). NFC powers contactless payments through e-Wallets such as Apple Pay. Moreover, NFC technology moves information to the reader fast, leaving no gaps for data leaks. Users can use their mobile wallets at points-of-sale (POS) only.
‘Standard’ in the industry, digital wallets are web applications users can access from any device connected to the Internet. Run by a provider, you can top up or withdraw from your balance in the e-wallet. Mass-market examples for e-commerce purchases are PayPal and Amazon Pay.
Even banks are offering custom digital wallet apps that feature budgeting and alerts. Beyond other e-wallet advantages, some versions store non-fiat currencies, accept loyalty points, coupons, and discount codes.
Cryptocurrency wallets come in a physical medium that stores public and public keys for crypto transactions. Besides encrypting information, some cryptocurrency wallets can process payments.
Internet of Things wallets vary, and while some take e-money, others operate virtual currencies. Many IoT wallets come in wearables such as wristbands, watches, or jackets. Advanced variants can run on intelligent fridges or car computer systems.
The Most Significant E-Wallet Advantages
Digital wallet features bring ultimate value for users and businesses. Here is a list of the most impressive perks:
One of the most appreciated e-wallet advantages is the encryption of all data contained within the app. Hence, besides two-factor authorization, online stores will never know your payment details. Plus, you must confirm all transactions via password or fingerprint, and your device further protects the digital wallet.
Stores with employees hired to complete sales and accept the customers’ money will find the introduction of digital wallets cost-effective. This way, companies can drop the need for cashiers and save significant resources each month.
Digital apps move queues in stores way faster thanks to instant payments. As for online shopping, customers have all the necessary purchase details stored and verified.
Businesses strive to make the checkout process as smooth and hassle-free as possible. By reaping e-wallet advantages, merchants can reduce the cart abandonment practice of shoppers who hate to re-enter their credit card information.
E-wallets run within internal networks that process transactions without intermediaries. Hence, these solutions reduce the expenses for transfers between clients and merchant payment gateways.
Businesses can integrate loyalty programs into e-wallet solutions on a single platform to stimulate app use. Besides allowing shoppers to pay faster and easier, you also give them extra perks.
Elly Is The Perfect Fit For Your Business
Amid the cashless revolution, e-wallets take pride in numerous benefits for businesses. Our users can opt for multiple payment methods and revenue streams on one device only. Merge card, crypto, and other digital payments in a single system to give your customers a seamless shopping experience.
Whether you’re operating online, running a restaurant, beauty salon, or providing services, Elly’s hard and mobile POS systems are an ideal choice. Finally, Elly’s e-wallet advantages feature customized plans, cost-efficient charges, and boosted security measures.