While digital wallets were a popular option for consumers pre-pandemic, the COVID-19 crisis has contributed to a significant increase in contactless payment adoption across the globe in a massive effort to reduce the spread of disease.
An issue that tends to arise though, is that the use of digital wallets can be a confusing experience for customers and merchants alike. Many shoppers have no idea how to use digital wallets and when the process goes askew, shoppers often abandon the effort—and they may not attempt to try again.
Here’s how the tech industry can contribute to streamlining the process of using digital wallets and contactless payments, to reduce confusion for consumers both now and in the future.
Simplicity within the right solution results in frictionless transactions on both sides of the operation. Simplifying these efforts cuts down both time and contact, for example with PIN entries for consumers to various program integrations into existing point of sale systems for merchants.
The smoother the overall experience is for shoppers, the more likely they will continue to adopt these digital payment practices and integrate them into their everyday lives.
Rewarding and encouraging consumers in ways that matter to them contributes to an increase in loyalty, engagement and revenue, making it a great solution to the ongoing battle for consumers’ spend.
There are great examples of who is using cashless and mobile pay to drive adoption and loyalty. Starbucks is an extremely successful digital wallet internationally, and despite being its own brand wallet, it was originally miles ahead of Apple Pay and Google Pay in terms of adoption.
When you gain an understanding of fan purchasing habits and preferences, it becomes easy to communicate with them and rewarding them to engage with your brand creates a virtuous circle of reward and revenue. It’s a win-win result.
Transactions that do not require any physical contact have proven to be the right solution out of pure convenience and safety in the past year and unlike contactless bank cards, the right digital wallet removes physical contact completely.
Consumers who are just starting to use digital wallets will likely continue to appreciate the ease, so long as the process is simple and preferable. Merchants who are looking to not only survive these unprecedented times but succeed in the post-pandemic era need to also see the value in adapting as the demand for cashless payments grows stronger.
