Electronic Commerce has rapidly grown in the past decade and has become an essential part of the global retail framework. The internet and ongoing digitalization have transformed the global retail market drastically. In today’s time, consumers can easily buy any goods or services on the internet by making an online transaction. Nearly two billion people purchased goods or services online in the year 2020. Also, e-retail sales increased by 4.2 trillion U.S. dollars worldwide in the same year.
People have been participating in online shopping activities more than ever. Pandemic has also caused an increase in the number of online shoppers.
While this is good news for eCommerce businesses, the competition is going to be extremely fierce.
Ecommerce business owners will have to employ best practices and methods to provide the user a smooth experience when they visit their website. Many factors contribute towards a smooth user experience, such as navigation on the website, policies, etc.
One of the essential factors that have a direct impact on the eCommerce business is the Payment Method. Payment methods can either drive away or attract customers to your website. Most people prefer shopping from sites that facilitate multiple payment options. While some prefer Cash on Delivery, others prefer paying via credit or debit card. But lately, digital wallets are being used as a prime payment method. And the wallet feature has now become a contributing factor in customer conversion. The number of people using digital wallets has increased by 75%, and they find digital wallets slightly more convenient than traditional cash or card payments. For those who have less idea about digital wallets and their use, let us help you with their basics and working.
Digital Wallets & its Working
A digital wallet is a service that allows individuals or businesses to perform transactions online through the help of a mobile application. Digital wallets are relatively safer than traditional online transactions and are easy to use. They store user’s payment information for different payment modes on numerous websites, and they could also store several items such as gift cards, e-vouchers, online passes, etc. Users can also load money on the digital wallet or use digital wallets as a medium to make transactions.
Many eCommerce companies have their digital wallet feature, and some collaborate with third-party companies which provide digital wallet services such as Paypal, Paytm, Amazon pay, etc. Digital wallets are necessary to perform transactions and maintain the balances of cryptocurrencies. Having a digital wallet feature can increase your customer in the present time. Online business owners can either build their wallets from scratch or depend on a third party for digital wallet transactions. However, some users do not trust and find it suspicious when a payment procedure redirects them to another website, and they leave your site without completing the purchase. It can impact your business and customer conversion rate. Businesses need to collaborate with the white label digital wallet platform to prevent it from happening. A white label payment gateway allows brands and business owners to use their logo and name to the payment service to assure users.
Digital wallet offers a wide range of benefits for business owners and also to the customer. Below are some benefits you can reap by incorporating a digital wallet service into your eCommerce website.
1. Simplify Checkout Process
Customers tend to get irritated with the lengthy checkout process.
Digital wallets bring ease in performing transactions and checkout processes. Most digital wallet applications provide an easy single-click payment process which saves your time by reducing checkout time.
The shortened checkout process will attract more customers.
2. Cardless Transactions
Digital wallets allow the shoppers to go cardless and provide them the facility of multiple payment options. A customer does not have to carry their card physically since they have all the necessary information on their smartphone. The customer only needs to hold their smartphone to the Point of Sale terminal at the checkout to make a payment.
3. Added Security
Online business owners and eCommerce merchants should incorporate a reliable digital wallet option while keeping ease of use and security features as prime factors. They should focus on implementing such a system that simplifies the security instead of complicating it. The digital wallet feature for eCommerce sites also keeps vendors safe against online fraud.
4. Organizes Payments
Most digital wallet applications provide ease of access and organize all your payments. These applications facilitate online buyers to make payments using their tablet, desktop, smartphone, or laptop. Digital wallets also allow you to accept payment from multiple devices.
5. Ease in Return & Refunds
Return and Refunds are the inevitable part of the sales. There will always be those transactions where customers would want to return a product. Providing a hassle-free process of return and refund can make your customers trust you more. Refunding the money in their wallet can help you retain your customer, and it will be beneficial for you in the longer run.
Digital wallets can make the process of return and refund very easy for both the customer and vendor.
The digital wallet feature is quite a must for successful eCommerce websites. Another advantage of having a digital wallet service is that it has solid 3D end-to-end encryption. To use a digital wallet, all you need to do is download the application on your smartphone and fill in the necessary details.