5 reasons your business should embrace digital wallet payments
Ensuring that payments from customers are collected quickly and accurately is a critical requirement of any business. No matter how large or small those payments, no matter how regular or one-off, they underpin the business’s bottom line and, ultimately, its success or failure. But as we know, the world of payments has changed dramatically over recent years. It seems barely believable that it was only 13 years ago – on February 14th 2006 – that Chip and PIN was mandated across all UK transactions. Since then, we have seen the rise of contactless payment cards and, since Google Wallet launched in 2011, the introduction of digital wallets. Now, a wide variety of digital wallets are available, including the flagship offerings from Android and Apple. Statistics suggest that by 2022, the next-generation payment technology market will be worth approx. £11,000 billion. However, many organisations are yet to embrace digital wallet payments. There are still too many sectors and business contexts where managers are reluctant to embrace this new technology, thinking it will be more trouble than it is worth, or simply isn’t relevant in their industry. Yet the truth is, digital wallets have benefits to offer almost every business. Here are our top 5 reasons your business should embrace them:
The customer is always right, the old mantra goes. And today’s customers expect ultimate convenience and flexibility when it comes to dealing with businesses. Armed with smartphones and soon to be connected across superfast 5G cellular networks, customers expect to be able to make payments and engage with companies on their mobile devices – and digital wallets are a convenient and secure way of enabling this.
Digital wallet payments in combination with messaging applications help companies and customers alike to move away from paper-based processes, thereby improving environmental efficiency. The challenges of climate change are at the forefront of public consciousness, particularly among millennials and younger consumers, so businesses which can demonstrate a thoughtful and responsible approach to their carbon footprint are likely to be viewed favourably. Do you really want to be posting a monthly paper bill to a customer who is trying to reduce their environmental impact?
On a related note, digital wallets can dramatically speed up the rate at which customer payments are collected and processed. Not only is this useful from an environmental perspective, it also helps streamline operations and reduce costs. With ever-greater demands to ‘do more with less’, businesses should always automate manual processes where possible.
Compliance and security
Regulatory compliance in relation to customers’ financial and personal information has long been a core priority for businesses, but in the last year since the introduction of the GDPR, it has gained significant public awareness also. Accepting payments via digital wallets may help businesses to improve their security and compliance processes, providing greater automation, data protection and a clear audit trail for inspectors.
Innovation and forward-thinking
Digital wallets are part of a broader drive for consumers to engage with businesses via apps and for next-generation tools enabling individuals to get greater visibility and control over their financial affairs. Accepting payments via digital wallets can position businesses at the forefront of these developments, and as forward-thinking, digitally-aware organisations.
Whilst this kind of positioning is more important for some businesses than others, all organisations should consider payment methods as part of their overall brand and positioning to customers. Collecting payments via digital wallets tells your customers something about your business’s approach to new technology, to mobility and flexibility, and to customer-centric modes of operation. It could be hugely valuable for your brand.
To find out more about how you could use digital wallets in your business, get in touch with Revive Management today.