Even if the adoption and acceptance of digital wallets seem to be stagnating for the moment, businesses and customers are nevertheless busy taking measures and adopting innovative practices for the future. A Forrester Consulting research commissioned by JPMorgan Chase, and published in September 2017, highlights how the digital wallet landscape is being prepared for the next wave of progress.
Consumers are still exploring digital wallets options
The research determined that consumers can be classified into three categories when it comes to the use of digital wallets. If the ones using digital wallets appreciate features such as order ahead and pay, many still feel skeptical regarding the security features of such transactions. It is expected that 41 percent of consumers are going to try the digital wallet by 2018.
Power Users is the category of users far ahead. Leading the way for other consumers, they represent the tech-savvy younger generations. They are the first in their peers to try new applications, including online banking apps. They are well-conversant with the multiple features of digital wallets and features like order ahead, self-service pay or instant coupons urge them to prefer digital wallets from other modes of payment. They use their digital wallet weekly or daily.
Light Users express a moderate interest in digital wallets. Even if they are comfortable with technology, they exhibit concern about stability and security. Even if they appreciate the convenience of digital wallet features, they need to be reassured about security issues. They use their digital wallet infrequently to monthly.
Non-Users are the over-cautious skeptics. The main reason for their reticence to adopt digital wallets is the lack of information and confusion. They express high concerns regarding the security of transactions. Many also think that their merchants do not accept digital wallets.
Merchants need to keep consumers informed
Merchants, as well as digital wallet providers, are actively working to adapt technology to their services. They have grasped that this innovative payment solution represents both customer engagement and operational efficiency. In brief, it is a win-win situation.
The key focus, according to the research, is on integrating payments into applications and mobile experiences, as well as eliminating the need for users to enter their credit card data on their mobile devices.
Both small and large businesses also agree that digital wallets will entail faster checkouts. This is one of the appealing features for them.
Recommendations for merchants
First of all, merchants have to dispel the myths regarding digital wallets. They should inform consumers about the various benefits of the digital wallet, including security features. This can be carried out through information campaigns; compelling messages may be incorporated into the online shopping arena and in-store as well.
To furthermore generate customer engagement, merchants may include offers and coupons in digital wallets. It would be wise to offer services such as order ahead and self-service pay as well- features that consumers seem to like most. This will, of course, allow merchants to save money and time too.