Businesses Go Cashless. Ready Yet?
The past years have seen a great increase in cashless transactions and contactless payments. With this, digital wallet or e-wallet technology has also seen some advancements. A cashless world continuously becomes the norm and digital innovations show no signs of slowing down. You, as a business owner should therefore seriously consider incorporating cashless payment options if you haven’t already.
An E-wallet or electronic wallet – also referred to as a digital wallet – is a cashless transaction tool that usually comes in the form of an application. These virtual wallets can be linked to your debit or credit card, bank account, rewards and coupon information, and other financial details and avenues you may have.
Some of the most used e-wallets include:
- Cash App
- Google Pay
- Samsung Pay
- Walmart Pay
Significance of Virtual Wallets
Here’s a quick rundown on the significance of e-wallets in this rapidly digital-shifting world and a glimpse into why more and more people are opting for cashless transactions:
- Secure Personal Financial Details. Trusted e-wallets securely store the consumers’ payment information and encrypt transaction details. This greatly helps in reducing fraud.
- Global Financial Market. Developing countries can increase participation in the global financial market by having the ability to settle payments and transfer funds digitally.
- Cross-Country Fund Transfer. Enables people to transfer funds to family and friends in different countries.
- Crypto Trading. Crypto traders need e-wallets to make transactions and maintain their cryptocurrency balances.
- Convenient Payments. Digital wallets make shopping, bill payment, and similar activities more convenient.
Cashless Transactions for Your Business: How to Make the Shift
Safety, efficiency, and convenience – these three are more than enough reasons to consider incorporating cashless payment into your business model. Of course, going cashless can’t be done overnight. You need to do some research and learn how to make the transition.
Here are some steps that can help you prepare your business and provide your customers with a more seamless cashless payment experience.
Diversify Payment Options
Keep in mind that as popular as e-wallets and cashless payments have become, not everyone would want or have the capacity to use such tools or methods. Hence, make sure to offer multiple payment options so as not to limit your clientele.
Add Closed Loop Payments and Loyalty Programs
In connection to having multiple payment options, it’s a wise move to include closed-loop payments like gift cards and loyalty cards. This can help you strengthen your customer base and encourage first-time customers to return to your business.
Prepare and Master Your Cashless Business System Components
Incorporating cashless payment into your business model means acquiring the needed tools and software as well as training your staff to use every component efficiently. Some of the components you might need include virtual terminals, contactless card readers, payment terminals, and invoicing software.
Be Up-To-Date and Open to New Payment Trends
Deciding to go cashless means being constantly up-to-date with payment trends. There are a number of tools and methods already available and more will surely come out. Be in the loop to avoid losing customers just because you don’t cater to their preferred payment methods.
E-Wallet and Digital Payment Trends and Technologies You Should Know
E-wallets make use of the abilities of mobile devices to make financial products and services more accessible. As technological innovations continue to advance, so does e-wallet technology. Here are some of the digital payment trends and technologies that you should know of especially if you are a business owner thinking of making the shift into cashless transactions.
Near-Field Communication (NFC)
Near-Field Communication or NFC is the technology that allows digital wallet users to tap their mobile phones or any smart device or card to a point of sale (POS) machine to make a payment. NFC requires two devices to be about 4 centimeters from each other to connect. This makes payments and transactions faster, and more convenient as it eliminates the need to enter a PIN or similar verification process.
Cryptocurrency wallets can be said to be among the catalysts for contactless payment. These digital wallets allow users to securely store and manage their cryptocurrencies and blockchain assets. It also allows users to trade, receive, and spend cryptocurrencies. This makes for easy monitoring of assets while those same assets are kept secure. Cryptocurrency wallets are among the main digital wallet trends as they embody two of the significance of e-wallets – convenience and security.
Smart Speaker Payment
Smart speakers have become the mainstream tech in many households. While initially used to retrieve data or information and execute simple commands, smart speaker technology has since advanced. More and more people have been using smart speakers to make a purchase. This medium will undoubtedly extend digital payment to a bigger scale.
International remittance sees an exchange of multi-billion dollars every year. The development of digital wallets has opened a new avenue for people to complete international remittances faster and more conveniently. The next few years will surely see more innovative processes and more expansive payment systems that will make way for more digitized remittances.
QR or quick response code is yet another technology or trend that is widely used in the digital wallet industry. The matrix barcodes store information that’s only needed to be scanned with the device’s camera to initiate payment. This makes the payment or fund transfer way simpler.
Some digital wallets like Apple Pay and Android Pay have introduced biometric authentication for every payment and money transfer. This certainly adds another security layer as it prevents unauthorized access as well as protects users’ confidential information. This is especially true as biometric technology has advanced from basic facial and fingerprint recognition to more complex iris recognition, vein mapping, and heartbeat analysis.
Consumer behavior as well as merchant behavior show overwhelming acceptance of digital wallet technology. And why not? After all, digital wallets make payments and transactions easier, safer, and more convenient. The acceptance and use of digital wallets or e-wallets, therefore, will only go upward from here. Soon, we just might have an almost, if not totally, cashless world. Don’t miss out, if you are a business owner, incorporate cashless payment into your business model now.
Frequently Asked Questions
What is an e-wallet?
How to use a digital wallet for transactions?
You’ll usually need to just tap your smart device on the point of sale (POS) machine or portal. You can usually simply select your digital wallet’s logo when purchasing online.
What are the benefits of using an e-wallet?
Some of the advantages of digital wallets include convenient and time-saving transactions, reduction in fraud involving payments, no more carrying around cash or multiple cards, access to otherwise unavailable financial services, and more.
Is it safe to use digital wallets?
Yes, it is quite safe as it is heavily encrypted.