Every entrepreneur wants to sell more and see his business thrive, but that does not depend on his will. Observing the definitions of consumers and the meaning of their purchase process is essential. The customer’s pain point is basically the reason why he is looking for help with his service or product and his observation is important for the success of any business. Identifying this pain means offering a solution to solve the problem matching expectations. In fact, a purchase conclusion is a delicate moment and, therefore, should not create obstacles or more headaches for the customer.
Several factors can influence the purchase decision, and your withdrawal as well. With the ever more agile entry of new payment methods on the market, consumers are becoming more demanding and expect to find their preferred payment method when making a purchase. In fact, there are many possibilities for payment over the internet, but if the consumer does not find his favorite, he can stop buying at the store.
According to a survey carried out in 2019 by Retail Reimagined, from the Adyen payment platform, 85% of Brazilians have already given up on purchases because of queues and poor service. The index is higher in Brazil than in the world average, which is 70%. Negative shopping experiences result in an annual loss of $ 2.5 trillion for retailers worldwide. Also according to the survey, about 70% of Brazilians said they had already abandoned a purchase because they could not pay as they wanted.
It is believed that quick purchases, with a single click, via smartphones would significantly increase customer loyalty with brands. In this sense, the implementation of digital wallets to speed up checkout is already considered the third main priority for commercial establishments.
A projection carried out by the consultancy Bain & Company, worldwide, found that digital wallets should go from 16% of total payments made at physical points of sale in 2019 to 28% by 2022. In Brazil, they should represent, in 2022 , 9% of sales at physical points of sale and 18%, in e-commerce. When it comes to e-commerce, where they already have a larger share, the projection is that e-wallets will advance even more and start to represent 47% in the next year.
But, after all, what is a digital wallet?
The digital wallet, also called by e-wallet, is a technology developed to transform mobile devices into simple and fast payment methods. In other words, it is an application created to facilitate the payment of purchases in person or online. The payment app allows the consumer to use a virtual card or QR Code by cell phone without the need for the physical card to be ready or in hand to make a transaction.
To use your digital wallet, simply download the digital wallet application to your device and add your cards. Then, just use your unlocked cell phone to pay for purchases by physical stores or choose the digital wallet as a payment method for online purchases on websites and apps.
What is the technology behind an e-wallet?
The basis of digital wallets is the technology called NFC (Near Field Communication), which allows payments to be made only with the approximation of the card or cell phone of the machines. This type of technology can also be present in smartphones and smart watches or bracelets.
The exchange of information takes place through open APIs present in the applications. A part of the programming allows the flow of information between different programs.
The data registered uses tokenization technology, responsible for transforming the card information into a secret code, the token. This code can be used to make new purchases. Once the card is saved, the token is stored on the device. Then, to pay something, just use your device as a form of payment for the application to provide the encrypted information.
Advantages of a digital wallet
People who have not yet adopted the use of a digital wallet may be in doubt about its advantages. Especially because, there is the fear of using the smartphone to make transactions and it is not so safe. However, its popularization is not for nothing. Using a digital wallet on a daily basis is very simple and that is why they bring so many advantages, such as:
Greater control over your spending. Once everything you pay with your digital wallet is recorded on it, it becomes easier to keep track of expenses. The consumer can consult the payment history whenever he wishes and see everything that was purchased through the wallet. If you do not recognize a purchase, you can solve the problem quickly, without waiting for a printed invoice to be aware of the movement.
Practicality in your daily life, since it eliminates the need to leave the house carrying a wallet full of cards and money, in addition to taking your cell phone. All of that can be too much. Therefore, the digital wallet allows the person to leave the house only with the smartphone and make purchases with the technology available there.
More security in transactions. When we use money to make a purchase, for example, we always run the risk of receiving the wrong change or of losing a note. In addition, when we carry out card transactions, we may be surprised with a fake ATM or even have our password and card stolen. In other words, all means of payment have their insecurities, but they are not always “dangerous”.
Contrary to what one might think, the digital wallet is safe and does not send your data to make the payment, as many believe. The digital wallet has the smartphone’s own security, with a password to unlock it and enter the application. That way, we can see that the digital wallet is very safe and people can use it without fear.
Finally, more agility to make purchases or payments. Since digital wallets only need to be approached or touched a few times, you spend less time handling physical cards or banknotes.
Connect your digital wallet to the payment methods ecosystem!
Thinking about the pain of consumers and the increased demand for payment mehods that provide an agile purchase, paySmart, a fintech that allows any company to become a digital bank, has a platform that embarks on a flexible solution that connects the digital wallet to the global payment ecosystem in a very short time, the BIN Sponsor. The company takes care of all the interface with the flag, processor, customizers (graphics) and regulatory bodies.
For issuers, the advantage is to be able to issue a branded and personalized card with the company’s identity, enabling wide acceptance and expanding the territorial scope of the card. The solution also guarantees more control for the company, creating specific product segments according to its needs, in a transparent, simple and fast way.
The solution is easily shipped in digital wallets via API’s Rest, which is very intuitive. In addition, it has the exclusive tokenization solution from paySmart, which offers greater security, ease and agility in the integration to the card, in addition to allowing the cardholder to activate their virtual card in a few seconds, without having to wait for the physical card to make their purchases.
If a business does not yet have its application for the digital wallet, paySmart can also help with the White Label Application solution. Easily customizable in terms of logo, colors, themes and fonts, the application comes with the main features that the customer needs (balance, statement, card unlocking, etc.), in addition to several cash-in and cash-out options.
Want to better understand how it works? Talk to us here.
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