Alternative Payment Methods: Digital Wallets
A digital wallet or e-wallet is a software application linked to a user’s bank account and acts as an alternative of a plastic credit or debit card. Consumers can use their digital wallets to purchase goods and services, check their account balance, and send and receive payments.
As a merchant, you should be able to respond to consumer needs and include digital wallets in the payment options you offer on your online store.
Some of the benefits of digital wallet for consumers include:
- Convenience: users can pay for their online transactions such as travel tickets, accommodation, clothing, jewellery, and online courses by using their e-wallet. With all the payment data already stored in their e-wallet there is no need for consumers to look for their physical credit card to submit their payment details at the checkout page.
- Security: the consumer’s personal and payment information is encrypted and stored safely which minimizes the possibility of fraudulent activity. The digital wallet can only be accessed with a password, unique identification code or the user’s fingerprint.
- Minimal setup: consumers are expected to download the application of the digital wallet and insert their personal data and bank account number to start using their e-wallet.
- Easy to manage: users can easily manage their payments, expenses and check their account balance through the e-wallet application.
- Faster checkout: shoppers experience a quick and easy checkout process and they don’t get distracted by a complicated payment form.
Some of the benefits of digital wallet for merchants include:
- Low operating costs: digital wallets require minimum transaction processing which reduces the operational expenses.
- Lower cart abandonment rate: with e-wallet as a payment option, online shoppers can pay quickly and easily without abandoning their cart due to a confusing payment process. E-wallets provide a seamless checkout experience for the customer and a lower cart abandonment rate for the merchant.
- High security: payments made using an e-wallet are based on tokenization technology, which protects the credit card data by replacing the credit card number with tokens.
Featured e-wallet: WeChat Pay
WeChat Pay is a popular e-wallet mainly in the Chinese market. Consumers should have a Chinese bank account and a Chinese phone number in order to make payments with WeChat Pay wallet, no matter where they are located. Merchants who can benefit from offering WeChat Pay to their clients include European travel merchant agencies serving customers from China, education institutions or online education providers with students from China, online stores with customers from China, and many more.
Consumers can use WeChat Pay in various ways. Those include:
Quick Pay: customers pay for their purchases by presenting the QR code available at the Quick Pay page at the retailer.
QR Code Payment: users have to scan the QR code of the product they want to buy to find more information about the product and the transaction process.
In-App Website-Based Payment: customers purchase products through the retailer’s official account usually after they have received a push notification from them.
In-App Payment: users pay through the online retailer’s app.
Depending on the nature of the purchase – online or in-store – WeChat Pay is a convenient way for consumers to manage and process their payments simply by using their mobile phone.
Considering the many benefits of e-wallets, it should come as no surprise if digital wallets eliminate the use of physical wallets to the minimum in the near future. Powercash21 offers a variety of popular e-wallets such as WeChat Pay, EasyPay, Qiwi, and more. If you would like to discover the best e-wallet payment solution for your online business, contact us here.