How Digital Wallets and Mobile Payments Are Evolving and What It Means for You

by Joseph Walent 0

The author makes several good observations of the beneficial aspects of digital wallets and their expanding usefulness in negotiating daily life by consolidating the completing and recording transactions in an electronic environment. More consumers are expressing the need for solution for the variety of ways to pay and rewards and loyalty programs being offered. These are the advantages that digital wallets embody.

For customers, digital wallets and mobile payments can replace carrying around a bulky wallet. Besides being a minor hassle, you no longer have to be concerned if you forgot your cash, credit card, or ID at home. All that information is stored on your smartphone. And, unlike your wallet, you probably never leave home without your phone.

Additionally, using digital and mobile payments saves you time. Instead of inserting a card into an EMV terminal, you can just swipe and go. And, when shopping online, you no longer have to race against time to complete a purchase before your session expires, like when buying concert tickets. As long as you have a digital wallet, you can make instantaneous payments online.

Digital wallets also come with customer perks like promotions, cash back rewards, and keeping track of your accounting easier. Most importantly, they’re convenient. You can split a dinner tab with friends, pay bills, and avoid expensive transaction fees when you travel.

Mercator Advisory Group agrees with the assessments of the capabilities and potential of digital wallets expressed, which are significant and compelling. Just not compelling enough to inspire widespread adoption. The reasons for this slow uptake are varied, and are in many cases dependent on a variety of factors. We expect digital wallets will continue to make steady inroads with consumers, but we do not expect near term widespread conversion until there is an anointed winning platform. Consumers for the most part do not want to expend the energy changing their well-worn individual payment routines until they recognize it will be a “universally” accepted methodology. Until there is a clear winner, uptake will remain tepid.

Overview by Joseph Walent, Associate Director, Customer Interactions Advisory Service at Mercator Advisory Group

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