And retailers need to find ways of fluidly connecting with them, and involving them. This factor is fundamental to achieve loyalty, so that they don´t abandon their shopping sprees.
Given that the payment experience is a key moment to seal the deal, retailers need to find digital solutions that optimize the UX in that fundamental instance. And in such sense, electronic payment methods constitute ideal tools, for online shops and physical stores as well.
On e-commerce sites, the virtual wallet shortcuts a number of steps before a payment, such as providing your personal information and delivery addresses once and again; and in the physical store it proposes payment options that are new, faster and safer than traditional mechanisms.
Virtual wallet technology is flexible enough for retailers to be able to create simple payment options with just one click. Besides, it allows offering additional services, such as loyalty programs and gift cards. That is to say, digital payment solutions can be used to store details about fidelity and digital coupons. And, additionally, they allow communication with clients in a more informed and specific manner “as a result of the data gathered about the client´s behaviour and preferences”. This enables personalization in communication, offering special offer and predictive purchase recommendations.
The virtual wallet safely stores user´s payment information and passwords for multiple payment methods and websites. Usually it works through an application on Smartphone, and protects data through encryption and passwords.
According to a study carried out in 2020, the use of digital wallets in Latin America grew by 43.5%, while the use of cash fell a 35%. The increase in the use of electronic wallets will continue, and it is estimated that they will become the leading payment method in regional electronic commerce in 2024, when they will reach the forecast value of 31% of transactions.
Digital wallets help boost the conversion as they facilitate the finalization of purchases in mobile devices. Counting with the payment details and shipment information stored in the application, consumers do not need to enter any detail and are able to pay in one or two clicks, creating a fast and problem-free digital payment experience.
On the other hand, as they count with integrated security features in the application or phone – as fingerprint enabled session opening or facial recognition – digital wallets also speed up authentication.
Another benefit of this payment method is that it improves authorization rates, as when counting with incorporated security it is more probable that issuers authorize payments.
Clearly, the virtual wallet accelerates the payment process online and presentially, which improves the client´s experience. This, at the same time, is translated into more loyal customers and less dropout rates. Besides, thanks to these digital solutions, clients can use coupons and pay with the same device, which could generate more sales opportunities.
From Baufest, we would like to offer our services as technological partners for retailers to design and implement this new omnichannel digital payment experience that favours customer loyalty, operational costs reduction and the generation of new business models.
Is virtual wallet already implemented in your retail organization?