Introduction to Ewallet solutions
An e-wallet or a digital wallet is a tool that simplifies transaction processes for consumers and businesses, providing an invaluable tool for secure online money transferring. The exponential increase in the usage of e-wallets by the consumers is spanning across the globe, slowly minimising the sole dependence on the credit and debit cards. Lately, they are growing beyond fulfilling basic financial transactions and stepping into other territories like authentication of the user's credentials. The credentials can then be passed wirelessly to a merchant’s terminal.
As far as the alternatives go, the closest thing that comes to an e-wallet is an open-source password . The way they work is by storing passwords in highly-encrypted databases, which you can unlock usually with one master password or a key file. The obvious shortcomings of these password managers are their one-dimensional approach to customers and lack of versatility. There are number of reasons why e-wallet solutions are such a popular and reliable choice in e-commerce and elsewhere. This post will walk you through the highlights of ewallet solutions and cover all the 5 major factors that make them a compelling financial management solution:
- Reduced costs
- Competitive advantage
- Up-to-date service
1. Reduced costs
In every financial operation, managing the costs down is among the primary concerns, followed by experiencing or delivering great service. Utilizing an e-wallet helps so by cutting out the intermediary in many ways for both e-sellers and customers.
- For retailers, an e-wallet speeds up the checkout process by eliminating multiple steps like filling out the shipping information and choosing the payment method. This, in turn, reduces cart abandonment and leads to an increased conversion rate and more revenue. Also, it can effectively replace large and costly POS (point of sale) systems and thus lower transaction costs.
- For the customers on your store, it provides reduced commissions by substantially reducing the cost of banking transactions, especially small and micro payments, through smaller fees. These include various money transfers and exchanges between users. Another handy feature of an e-wallet, though not directly affecting cost reductions, is that it allows your clients a detailed expenditure track, meaning they can easily see how they have spent every amount.
2. Competitive e-commerce advantage
A business using a digital wallet provides a convenient and more efficient method for transaction processing. In today’s fast-paced world, consumers are becoming more savvy and demanding, especially when it comes to their checkout experience. As most e-sellers are fully aware, customers constantly evolve in their online behaviour. They demand and expect the fastest and easiest checkout experience possible. Meeting these expectations redefines the user experience of the complete purchase process and provides the most effective and efficient service. Potentially, this integrates a different aspect to each purchase and increases customer and brand loyalty.
3. Up-to-date service
Keeping with the ever-changing customer trends is essential for every commerce. Even the traditional cash-only business like fairs and markets recognize the need for catering to prospects by accepting card payments. This opens up many business opportunities for greater revenue through multiple channels and new payment methods. E-wallet solutions are supported through a wide range of devices, thus giving customers the option of checking out the way they want, be it with a mobile device or a personal computer. E-wallets also connect to existing ATM networks and online banking solutions in case you need physical cash, making for a comprehensive all-in-one financial tool.
With an e-wallet, users can complete a purchase of goods and services within a few seconds. The subsequent use of e-wallets facilitates e-commerce as customers do not need to fill out order forms at each site and each time. Upon completing a purchase, the required information is stored and then automatically updated and entered in the order fields across different supporting merchant sites. Simply by going through a couple of clicks on a laptop or tapping a couple of times on the screen of the mobile device, the experience is swift and pragmatic, producing a high level of satisfaction. And, with the further implementation of e-wallets in stores, check out time is much shorter due to reduced number of steps as the information is already there. An e-wallet eliminates the need for filling out countless forms as it requests only the essential information.
The enormous ease of use manifests in having your debit/credit card details already entered for every online transaction, transforming an e-wallet into a huge time-saver. Also, the decline of payment is non-existent in this case because e-wallet is a prepaid account. It uses the back-end infrastructure that routes credit and debit card information between businesses and online banking solutions, meaning the money is already in the .
Apart from financial information, customers can store other important personal information, such as account passwords, PINs, account numbers and more, as well as a driver’s license, health card, different loyalty cards, memberships and so on. You can have as many different wallets within your e-wallet as you want, keeping different information in each one for different purposes. Finally, what’s often forgotten is that e-wallets offer a 24/7 access from anyplace and anytime.
Often the most talked about aspect of e-wallets (and online shopping in general) is security. While there are certain risks that naturally go with these types of services, the possibility of a security breach or data theft if far less likely than usually perceived by the public in general.
One of the instances which downplay the severity of security issues is the natural flexibility of e-wallets. Using them avoids the perils generally associated with card thefts such as card skimming or phishing. While we’re on the subject of cards - since a customer doesn’t have to enter credit card details for every payment, that actually decreases the risk of exposing those details to every retailer or merchant. Instead, an e-seller shares a unique transaction identifier or token, thus making matters more simple and secure for its customers.
There are multiple layers of security that make sure sensitive information is safe. Usually, digital certificates and various different Advanced Encryption Standard (AES) encryption methods, along with the hardware-based security layers like fingerprint authentication, are required for user verification and secure payment process. Customers on your store can also lock your digital wallet with a password and create a wallet without one, for a more general, non-confidential information.
Some e-wallets have additional security like fraud protection. A team is usually assigned to a user to track any suspicious transactions. If found, these transactions are flagged and the user is immediately alerted. In the case the user is unreachable or not responding, the account is temporarily blocked to prevent further.
As an e-commerce transaction service, an e-wallet is much more than the digital representation of the physical wallet. It is more like a Swiss knife of e-commerce, providing a highly personalized and straightforward bank account management. Both businesses and customers can pay for a wide range of services, send money to anyone, all the while enjoying a lot of perks like time-saving and cost reduction. It gives a lot of flexibility for users and lot of opportunities for businesses. It’s inherently more secure than a credit or debit card.
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