Many online shoppers find it annoying to type their billing details on the small screen of a mobile phone. It’s inconvenient, time-consuming, and error-prone. Merchants may improve their conversion rate by providing features like financial services, on-site buttons, and unifying online and offline stores. However, speed and security are the keys to online payment platforms.
Mobile shoppers look for secure ways to pay without entering their financial and personal information each time. Digital wallets are the best solution to streamline a customer’s buying process. They successfully combine multiple payment features into a single platform. Digital wallets effectively reduce friction and increase the conversion rate by several times. Let’s look at the business advantages of digital wallets and now how they benefit the merchants.
Reduced Cart Abandonment
Reduced cart abandonment means more revenue for the retailer. By simplifying the purchasing and payment checkout process, an increased number of shoppers will likely complete their purchases. A digital wallet streamlines the checkout process to improve customer experience.
Customers may quickly get frustrated if the checkout process takes too long or if they need to enter the details repeatedly. Complex checkout drives customers away. Cart abandonment rate increases when customers have to do a lot before completing the purchase. However, adding a digital wallet improves the conversion rate many times.
Digital wallets provide a simpler and faster checkout experience to consumers. With fewer clicks and forms on digital wallets, customers are more likely to finish the process and place an order. It drives up the conversion rates, which is a winning situation for the business.
A Contactless Way of Accepting Payments
Apart from being convenient, digital wallets add peace of mind and value to the store. They use NFC (near-field communication technology) to let customers checkout quickly without handing cash or touching any payment terminal. It increases value in the post-pandemic world when consumers look for touchless payment methods instead of coins and cash.
One issue for digital payment platforms is cyber security. A digital wallet transaction differs from a debit or credit card transaction. Many card companies use the technology of tokenization, which encodes the customer’s information with a one-time, unique code to reduce security threats. Individuals who drop their physical wallets can have their cards and related information stolen. After all, credit card details are the most profitable data for hackers. However, a digital wallet requires 2-factor authentication to work. If a customer loses a phone, it means that hackers won’t have an easy time accessing their money.
Access to Real-Time Consumer Data
Digital wallets help merchants get real-time data about consumer shopping habits. A merchant can launch a targeted marketing campaign based on a customer’s preferences and shopping history. Real-time data also helps a merchant create accurate budgets and manage inventory. Besides these, a digital wallet enables the merchants to offer more payment checkout options to the customers, including debit and credit cards, net banking, UPI QR code, EMI, PayPal, and cryptocurrencies.
Merchants who enable digital wallets in their payment platforms witness a massive increase in their cart conversions. They are an excellent way to accept secure, one-click payments fully optimized for online shoppers. Making online payments easier for the customers improves their overall buying experience and turns them into loyal customers.
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