Digital wallets, better known as mobile wallets today, are starting to become more and more common with consumers. Believe it or not, digital wallets have actually been around for years. Back in the late 1990s, the first signs of the digital wallet revolution were associated with PayPal, a solution for eBay users that expedited the process for repeat online purchases. Today, we see digital wallets everywhere — with Apple Pay, Google Wallet, Samsung Pay, Visa Checkout, Masterpass, Chase Pay, Venmo, and other popular digital payment methods, more and more people are starting to use digital wallets as their main form of payment. 

However, not all businesses are accepting mobile payments. According to a report by Business Insider, mobile payments are expected to increase to $503 billion, which could end up hurting merchants who have not yet adopted this new form of payment technology. In this article, we are going to review digital and mobile wallets and how they can affect businesses. 

What Is A Mobile Wallet?

A mobile wallet is simply the digital version of the wallet you typically would carry around in your pocket or handbag. Using near field communication (NFC), mobile wallets transmit information from a mobile device to a payment reader, making it easy to pay for transactions with your phone. Mobile wallets store payment details, such as credit and debit card information, and cash balances, which can be used to make contactless payments for goods and services. Instead of paying with cash, swiping a card, or entering your pin number on a point of sale terminal, consumers are able to make quick payments with a simple tap on their smartphone. Digital wallets make it easier to keep track of your valuables without having to worry about carrying around a big and bulky wallet. 

How Do Mobile Wallets Benefit Consumers?

Just like credit and debit cards had allowed consumers to go cashless, digital wallets have enabled them to go card-less. Let’s take a look at why more and more consumers are starting to ditch the leather bi-fold or hand wallet. 

• Security. To start, both cash and credit cards are notoriously easy to misplace or lose due to carelessness and also from theft. Not to mention, wallets are one of the most common personal belonging that people tend to lose, forget, or misplace. Smartphones, on the other hand, are a huge part of our lives and an item we are likely to always have with us. Even if a smartphone is stolen or lost, the payment information remains protected, as the data and funds stored in a mobile wallet are encrypted. During payment transactions, there is no personal information leaked to the business, significantly reducing the chances of theft and fraud.

• Convenience. There is a lot of freedom and convenience for consumers when it comes to digital wallets. Gone are the days of carrying bothersome wallets stuffed with wrinkled bills, cards, and coins. With digital wallets, consumers can have quick and easy access to payment information that is stored securely and neatly to a device they typically have with them every day. What’s more, digital wallets make it easier than ever to pay — and receive money from — others.

• Easier to manage. Consumers have the ability to transfer funds into their mobile wallets from virtually anywhere. Whether a customer is sitting at home, at work, or on-the-go, mobile wallets make it easy to track and modify your payment information and transactions. 

How Do Mobile Wallets Benefit Businesses?

Mobile wallets do not only benefit the consumer, but they also benefit businesses as well. Accepting mobile payments is a smart move for business owners for three essential reasons: security, speed, and convenience. NFC transactions typically are completed in a matter of seconds, which is much faster than processing magnetic strip cards or making change for cash payments. What’s more, payments with e-wallets are generally faster than EMV, or chip card, payments, which can often take longer than magstripe payments to go through. Accepting mobile payments can help drastically reduce customer wait times at checkout. 

In addition to security being a benefit of mobile wallets to consumers, it is just as beneficial for businesses, too. Unlike a stolen card, most mobile payments require a passcode or physical ID to make a purchase. By accepting mobile payments, businesses do not only take the necessary steps to aid in PCI compliance, but they also give their customers peace of mind that their payment information is safe and secure with their establishment. Customers appreciate security and convenience when shopping, and smartphone payment systems are safe,  convenient, and provide a little bit of “wow” factor forconsumers.

Why Your Business Needs To Accept Mobile Payments

The truth is, business owners cannot afford to work on cash-only systems. The percent of point-of-sale purchases made with cash is expected to keep dropping as time goes on. Plus, most large retailers are now accepting payments from mobile wallets. However, that is quickly changing. In order to compete with other businesses, it is vital to accept popular payment methods. The time for businesses to start setting up mobile payments, such as Apple Pay, is now, as many major retailers and businesses have already reported massive increases in mobile payments. Adopting NFC payment technology is a chance for businesses to set themselves apart from the competition with safe and streamlined payments. 

Is Your Business Ready To Accept Mobile Payments?

If you own a business and are ready to set yourself up to accept mobile payments, like Apple Pay, all you need to get started is an affordable NFC reader. And, if you are looking for a point of sale terminal that accepts mobile payments, be sure to check out the POS solutions from TekCard Payments! We offer some of the best POS systems available for small to medium sized businesses that accept mobile wallet payments, such as a Revel POS system or a Clover system. If you are ready to enhance and streamline your business payment methods, contact Tekcard Payments today

Meta: Digital wallets and mobile payments are becoming more and more common. What's more, they can benefit consumers and merchants alike. Check out our blog to learn more about digital wallets and the best mobile payment systems.