We have all become so attached to our phones that any idea or technology related to it is automatically viewed as a surefire success. This is why mobile wallets made a worldwide buzz after Apple Pay’s creation in 2014. It is a mobile payment app that facilitates card-less and cash-less transactions. After that, Google, Samsung and all other competitors followed with their very own platforms.
What are mobile wallets?
Mobile wallets refer to payment services performed with the use of your mobile device. Basically, this will allow you to store credit card information through your smartphone, tablet, or smartwatch. So, your mobile device becomes an instant cash register machine. This way, you do not need to carry your credit card with you all the time.
Mobile Wallet Consumer Adoption
Despite the initial frenzy, mobile wallets have not taken the consumer world by storm. A study by RFi Consulting found that Australians seem reluctant to use mobile wallets. This was attributed to the convenience of contactless credit and debit cards. More importantly, there are instances of hassles in finding the appropriate card from the right bank to connect with the correct phone.
However, industry experts remained optimistic about the potential of mobile wallets. In India and China, mobile payments and wallets are becoming popular. About one-third of the RFi respondents were already using the technology. The statistics for Singapore is even higher where more than one in three are already using mobile wallets.
Why Use Mobile Wallets?
Once the initial hurdles of transitioning consumers from traditional payment systems are resolved, consumer adoption is expected to grow exponentially in the next three to five years. The following are some advantages offered by mobile wallet:
- Ease of use – Consumers can create a digital copy of their credit cards, debit cards and bank accounts on their device. They can use it without filling in of card numbers and passwords every time. Transactions are as easy as cash.
- Convenience and accessibility – You don’t need to carry a wallet for cash and card, all you need is your mobile device. You can pay for purchases or transfer money anytime.
- Better management of finances – Mobile wallet allows synchronisation of information from multiple platforms. Therefore, you can link your bank accounts, credit and debit cards, mobile accounts and bills under a single platform.
- Customer loyalty programmes – Businesses can easily offer rewards, discounts, and bonuses via these apps.
- Enhanced brand awareness – Customers are constantly looking at their mobile devices. So, by having a mobile wallet, you are increasing the opportunity to push your brand to their awareness.
- Gain consumer insights – You can track your customer’s data usage, like what sort of items they buy, etc. You get inside info on them without lifting a finger.
- You position yourself ahead of the pack – Experts believe that the mobile wallet game will hit the $186 billion mark come 2018.
Evidence shows that more people are slowly embracing the use of mobile payments. The day when cash and credit and debit card payments have become obsolete may come sooner than we thought. Businesses should aspire to keep up and embrace this technology.