Tuesday 20 December 2016

The Future Of Mobile Wallets


What’s in your wallet? Most of us would have some sort of payment method in it, for example, cash, credit/debit card and other nick-knacks such as ID card, loyalty cards, business cards, receipts, insurance cards, and the list goes on.

When we talk about mobile wallet, it’s not just a way to pay with a device, it is encompassing that actual wallet you possess with all of its contents and associated activities; integrating it into a type of digital device that empowers you to process what needs to be done without using your physical wallet.

Most often than not, that device is a mobile phone although it doesn’t necessary need to be. But as you know, the phone has already started to replace the wallet – you keep digital family pictures, perform online banking and transactions – your behaviour as a consumer and the phone is what forms the new digital mobile wallet.

Let’s take a look at mobile wallets through the eyes of the consumer, how they fit into their everyday lives and what we can expect to see in the near future.



What Consumer Wants

With online shopping and credit cards aplenty, consumers don’t really want another way to spend money faster; instead they want a new way to spend their money wisely. The digital mobile wallet has the opportunity to provide that – information to form relevant and intelligent decisions to spend money.

The potential tangible value that consumers want is having intelligent computer chips, phones and POS devices that provide better, smarter experience for the consumer before, during and after shopping experience.

For instance, incentives to generate consumer’s interest to enter a store (through coupons or promotions), support tools such as a list-maker and continuing the conversation after leaving the store by offering relevant content based on their purchases; creates more personal customer experience to the products purchased and also empowers them to realise the advantages of the products’ full potential. In a way, this helps build up brand loyalty.


Simplifying For Use

Currently the mobile wallet has to be simplified to provide an easy “pay now” button. The key is to avoid the clutter (emails, chats, social networking, blogs, apps) to eliminate frustration and pave the way for seamless payment process.

At the end of the day, it’s important to avoid a bloated phone to become more convenient, intelligent and relevant.

Some of the more popular payment and wallet apps for smartphones are:-

PayPal

PayPal is one of the most accepted payment services on the planet. Lots of physical merchants let you pay with PayPal, no actual credit card needed. Just enter your mobile number and PIN and you’re good to go. PayPal just deducts the funds from whatever bank account or credit card you have linked.


Square Wallet

Square Wallet lets you link a debit or credit card to your Square account and pay with it anywhere Square payments are accepted. If someone sends you a Square gift card you can also store that inside the Square Wallet app for use whenever you’re at that merchant.


Passbook

Lots of merchants have deployed their own payments cards that are integrated through Passbook. Just add the card within the merchant’s app with support for Passbook and you’re good to go. Popular merchants such as Starbucks have deployed Passbook payments worldwide.


Challenge For The Future

Financial institutions, network providers and retailers need to figure out how to work together, how to get enough consumers to use the mobile wallet and enough merchants willing to accept mobile payments.

Co-operation is the best approach. Either they work together to move things forward or be left behind. But never forgetting that the user experience must remain easy-to-use and intuitive. The tech is here. Now we need to decide what the wallet will be – a phone, a key, an intelligent card?

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