Carrying paper money and coins in consumer’s pockets is increasingly becoming rare. Indeed, a majority of people are utilizing other means such as credit cards to pay for services. Things are even getting more interesting after the evolution of digital wallet, which mimics the traditional wallet.
More than ever before, people and firms are embracing the new wallets. This can be explained by the recent technology advancements, coupled with the consumer awareness of the safety and convenience of digital wallet solution. Will this become the future of pay? Why should you care? Well, this article gets into the details.
What Is A Digital Wallet?
A digital wallet is an account created by the best mobile app development company with the aim of keeping your money. It can also have critical financial information such as loyalty cards and credit cards. You can access the account using mobile phone or apps. Any person with proper internet connection can create their unique wallet. It registers a private key, which acts as password to allow users access their money and other information. They are also able to use a public key, which allows them to send and receive assets.
Why Digital Wallet Is the Future of Pay
Digital wallets are taking over the financial world and will become the future of pay for the following reasons:
It comes with usability element. A majority of consumers are willing to stop a transaction because they are unable to pay for a product or service using the recommended method. Digital payments, on the other hand, are extremely convenient. The consumer does not have to carry huge amounts of money to pay for a service. The transactions are always seamless. More so, organizations can reduce on the expenses of printing vouchers and inventory management during transactions. This is particularly important in sales department, where high levels of accountability are required.
Security is ascertained. It is easy to misplace a physical wallet while in the pursuit of different things in life. Thieves are also quick to notice them from the consumer’s pocket and hence steal them whenever possible. Digital wallets, on the other hand, are very secure. The loopholes are sealed by using PCI-DSS compliant frameworks. This is inclusive of two-factor authentication protocol. Unlike the case of credit cards, unauthorized parties are unlikely to utilize the wallets when making transactions.
Improved quality over payments. It can be daunting to trace paper and coin based transactions in an organization. This will in turn lead to losses and bruised reputation of the management. Digital wallets come in handy in this case, offering one dashboard for each user transaction. It is hence possible to keep tab on the daily or monthly expenses.
Improved flexibility. Digital wallets are now being accepted in the offline and online platforms, allowing the consumers to have a sense of flexibility in transactions. Paper-based transactions are limited to offline transactions.
Why Should You Care?
Before dismissing the ideal of looking for a digital wallet solution, you may want to reevaluate your decisions for the following reasons:
- Major companies are using the solution already
Remarkably, several companies have been utilizing digital wallet in transactions. It is inclusive of Apple Pay, PayPal and Amazon. As a consumer, you are likely to utilize their services and hence, it is important to start embracing the technology. Small businesses are likely to use square, which is a Smartphone appendage that helps managers to accept different types of payments. More so, Bitcoin has allowed consumers to avoid the regulations by government on banking and instead get secure means of storing their wealth. Other options include the Near Field Communication and The Coin Card.
- Solutions to lingering issues will be devised
The digital wallet is rapidly changing to address some of the major security and safety issues that banks have ignored over the years. The technology will become difficult to ignore in the future. Just as it has been the case with mobile devices, everyone will start to embrace the technology and as such, you may want to stay ahead of the curve by learning about it and using it during transactions. In any case, the solution places power in your own hands, giving you control over your finances and wealth.
- More people have access to the internet
It is worth noting that there are many people who cannot open a bank account because of different issues such as the age, strict government regulation, and geographical location. Digital wallet solution on the other hand is all inclusive and easy to use. More people can access the internet more than they can the banking industry. With digital wallets, value can be created without necessarily going through intermediaries. This attractive feature will drive more people to opt for the new transaction. Banks and other financial institutions may be forced to create similar products to meet the growing demand.
The Bottom Line
It is clear that the consumers have more reasons to embrace digital wallet in the future. Given the high levels of security, convenience, and flexibility, the form of payment is likely to be accepted in many areas. While they have been limited to simple transactions, they may be used in major areas such as real estate, fundraising, and medical payments among other things. Don’t be left behind in this course and instead, find a mobile app development company for solutions.