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The smartphones in 2021 are a toolhouse bigger than one’s imagination. Tasks that earlier required elaborated steps drawn out over days can now be completed with a few clicks on a small application. The credit goes to digital payment systems which has not only led to a shift in the payment habits of a user but has also seen a drastic rise in their user base for the eCommerce giants. Amongst all the payment modes, the most common name in digital payments has been digital wallets.
Digital wallets are payment systems that eliminate the need to carry credit or debit cards or even a physical wallet. As its name suggests, it is a wallet that holds money. The only difference is that the money is present in an online wallet virtually. More realistically, it is an application that can be installed on mobile phones, and money can be loaded into it using a card or from a bank account. The wallet then stores the money, and it can be paid to other wallet users through their phone numbers or some other identifier. Because it makes the process convenient and frictionless, it finds wide use in developing eCommerce websites.
Benefits of Digital Wallets
- Increased Sales Figures
Sales are a sign of potential growth in a business. A convenient payment process attracts more customers which increase sales. This is because customers won’t have to spend too much time or effort in purchasing. A payment gateway that supports digital wallets will improve the customer experience by accepting payments through just a few clicks and reducing cart abandonment. Supporting all the major mobile wallets is a must in today’s eCommerce market.
- Open to Wider Range of Customers
A business has to target a more significant customer base to maximize profits and sales. Thus, the support for mobile wallets enables targeting every segment of customers. There are more than twenty popular digital wallets in India, and everybody uses at least one of them. Moreover, users who are comparatively younger might not have credit or debit cards which includes a large number of first-time employees. The business can reach out to all such customers by accepting digital wallets and expanding its target base.
- Better Security
Security is crucial to the digital payment system. It is the very foundation of the customer’s trust in a business. The business can lose out on sales even if the customers doubt the security of the payment process. Digital wallets are undoubtedly more secure than any other online payments like credit cards or debit cards. This is because digital wallets have a limited amount stored in them and are not directly linked to a bank account.
Additionally, the identifier in the case of digital wallets is a phone number or user id, increasing security by eliminating sensitive payment information like card numbers. Few wallets also employ tokenization technology or randomly generated identifiers for each transaction. Post that particular transaction, the token is nothing but a random string. With better security for its customers, businesses can expect better customer conversion.
- Additional Rewards and Perks
The competitive market of digital wallets encourages wallet service providers to come up with different reward schemes. Customers earn cashback or reward points for paying via the wallet. Thus, the businesses can capitalize on this to generate better sales at the cost of the wallet provider’s marketing campaign. Getting an additional reward leads to more satisfaction among the customers as they get more value for the amount spent, that is, the product plus the earned reward. By promoting wallets when a particular provider is giving some rewards, businesses can encourage better sales.
- Recurring Payments
Collecting recurring payments is an ordeal. Customers have a tendency to get frustrated when they have to enter the payment details multiple times. The payment gateway can be customized to save the payment information & choosing a secure platform like Zaakpay can always be trusted to make your payments with a click. A digital wallet comes in handy in this case due to its minimal payment steps. Few wallets also have the feature to give reminders for the payment.
- Lower Transaction Fees
With digital wallets, transaction fees can be reduced. The overall costs of the product can be brought down without taking a hit on the business profits. Businesses that have their dedicated wallets can do this better & the transaction fees can also be lowered due to the lack of involvement of any bank.
- Low Chances of Payment Failure
Reliability is a crucial factor for a digital payment system. Digital wallets enjoy higher payment success rates, which has been a vital point for its success. By promoting them, merchants can eliminate payment failures and increase their cash flow which further reduces annoyance in the customers. And with a payment gateway like Zaakpay, it’s even smoother to make instant payments leading to customer satisfaction.
Digital Wallet transactions using a payment gateway
To equip the business for accepting digital wallets, a suitable payment gateway would have to be adopted. Zaakpay is an outstanding payment solution that merchants can rely upon. It supports more than 100 payment modes and, therefore, can process payments from all major digital wallets. For the merchants, there are several other facilities, which make it a suitable option for businesses of all types.
Conclusion
Developing a business to achieve greater heights is a meticulous task requiring investments in the right direction. A payment gateway like Zaakpay that supports digital wallets is the best option to opt for boosting sales, customer satisfaction, economical pricing & added benefits. Moreover, merchants must equip themselves with all-in-one payment gateways like Zaakpay to better handle payments in the future and help their eCommerce business grow.
