How Do Digital Wallets Benefit Small Businesses

Digitalization has now become the talk of the town and therefore every human activity is revolving around it. The same is the case with the wallets. Gone are the days where people used to carry cash in their wallet as it is becoming a rare thing these days! With the rise of new mobile and digital payment options like Google Pay, Paytm, Amazon Pay, cash payments are losing their importance day by day, thus giving rise to the new digital wallet revolution. As a small business owner, what do digital wallets and mobile payments mean for you is what we would be talking about in this article.

Digital Wallets and Mobile Payments

A digital wallet stores payment information so that you can pay for goods and services and for business it's another way to accept payments from your customers. Digital wallets (also called e-wallets) are smartphone apps that have substituted the old wallet monetary transactions. Mobile commerce is expected to be the leading segment till the end of 2020 as per the market research report titled “Mobile Wallet Market”, published by Allied Market Research. This indicates the global mobile wallet market is expected to reach $5,25 billion in 2020, growing at a CAGR of 127.5% from 2013 to 2020.

Benefits for Small Business

Due to the pandemic situation of COVID-19 people are avoiding contact cash transactions thus making digital wallet a Cashless payment solution for the Customers as well as Business. Digital payment solution is on its hype thus making it a must for small and medium businesses to use online and mobile payments. The benefit of these digital wallets for SMEs are as follows :

• They Improve Customer Experience

The market today is where Customer Experience means everything and to achieve this business goal digital wallets are your best companion. Customer Experience is that method of interacting with customers where you can meet their expectations so as to increase customer satisfaction and loyalty. Digital wallets are easy to use as you don’t need to fill long forms and enter your card number and password. One needs to simply fill the basic card details once and then further transactions can be done via applications, QR code scanning, and many more.

• Keep your Business Ahead

If you want to gain a competitive advantage in the market, then it is the best way to become an early adopter of digital wallets in your industry. Despite consumer awareness what makes you different from your competitors it is your business strategy to be one of the early adopters who offers the latest payment technologies. As if you follow the footsteps of customers by becoming an expert with new trends and technology in your business, nobody can stop you from excelling in your field.

• Speed check-out process

A speedy and faster checkout process via peer-to-peer payment application improves customer experience both online and in-store. It also enables businesses to run a more efficient operation at the point of sale. With the help of digital wallets, the store will be able to process payment faster, which keeps lines moving and customers happy.

• Become a truly Omnichannel business

Once you start accepting digital wallets, you can enable your customers to experience payment through all available shopping channels. The customers can pay you from the same device and card on every channel you support such as the traditional web, mobile apps, mobile websites, UPI’S, QR code scanning.

• Easy implementation

Implementing digital wallets has become one of the easiest ways to make payments, transfer money, and perform most activities these days. However, transactions can be made by card payments, NEFT, UPI’S, or even Master card according to customer’s choice. But the need for today’s business is to change the business customs as per the new trends and technologies existing in the market.

• Access to real-time data

With the help of digital wallets, one can easily access information like customer shopping preferences and shopping history. This would allow the small business to segment customers thus sending them product suggestions for future purchases by attracting them through loyalty or reward programs tailored as per their shopping needs. This will help SMEs to manage their costs and budget in real-time.

• Security

Security is one of the biggest barriers which is being overcome with the use of mobile wallets thus making digital wallets everyone's foremost choice. One need not have to worry about carrying your debit/credit card with you or forgetting it at any physical location. With the help of digital wallets, one can easily lock their phone if they lose it. Biometrics like fingerprint identification, Face identification and many more can be incorporated in your smartphones for security.

Conclusion

Digital Wallets are those digital electronic forms of physical wallets with various benefits for the businesses as well as for customers. It is one of the secure, convenient, and efficient ways to pay for things without carrying multiple credit or debit cards, currency cash, or coins. If you’re not already using some sort of digital wallet for accepting payments in your business, you need to start now this is what today's consumers and market demand for.

About the Author:

Nikunj Gundaniya, Product manager at Digipay.guru, one of the leading digital wallet app development company in USA, which provides mobile finance application development services. He is a visionary leader whose flamboyant management style has given profitable results for the company. He believes in the mantra of giving 100% to his work.