Can you imagine leaving your house without your wallet and making payments using only your mobile phone? This has been possible thanks to E-Wallets. E-Wallets, or digital wallets, are an electronic payment method that has gained popularity in recent years due to their convenience, security, and accessibility. This is a payment method increasingly used by both digital and physical businesses. We explain everything you need to know about digital wallets.
What is an E-Wallet and what is it for?
An E-Wallet, or digital wallet, is an electronic payment system where users can store their banking data or credit cards, allowing them to make online transactions. These electronic wallets are usually associated with a mobile app, where you can manage your cards or bank accounts and view information about executed transactions and payments.
How does an E-Wallet or digital wallet work?
The operation of E-Wallets is very similar to that of online bank accounts, but faster. Payments are made through NFC or contactless technology from the digital wallet itself.
Businesses and mobile applications can integrate E-Wallets into their operations, allowing customers to complete payments by simply entering their E-Wallet username and password instead of their card or bank account details. This makes the payment process easier and more convenient for the customer, as it is easier to remember a username and password than bank or card details. Additionally, this is a security advantage of E-Wallets since the merchant does not have access to the user’s payment data, thus offering more security.
As mentioned earlier, E-Wallets allow users to send and receive money among users of the same platform. This is a new feature that these digital wallets are beginning to offer. It creates a closed ecosystem within E-Wallets where payments can be made between accounts instantly and without cost.
An example of this ecosystem is WeChat, an instant messaging and social networking app developed in China. The app allows users to send messages, share photos and videos, and more. What is most relevant is that it offers an additional mobile payment service. Both users and merchants use WeChat for purchases, significantly reducing the use of credit cards in China. Payments are made through a QR code, and money is transferred instantly between the user’s and the merchant’s accounts.
How to use a digital wallet and where to use it?
An E-Wallet can be used in various situations where electronic payments are accepted. This payment method is used not only in online stores but also in physical stores, public transport, restaurants, and more.
According to a study published by Statista in 2021, the use of mobile payments in physical stores in Spain is expected to increase by 19.1% in 2022. Additionally, the same study shows that 52% of Spaniards already use mobile payments daily, and 21% use them frequently in physical stores. This demonstrates that the use of E-Wallets in physical stores in Spain is increasing.
Therefore, an E-Wallet can be used in various situations in Spain, including physical stores.
According to a report published by Research and Markets in 2021, the global mobile payments market is expected to grow at a compound annual rate of 28.8% during the 2021-2026 period. Moreover, the same report shows that E-Wallets are one of the fastest-growing mobile payment categories, with an annual growth rate of 31.2% during the same period.
For businesses to use this type of payment solution, they need to integrate it into their e-commerce platform or app. With Wannme, thanks to its integration in a single API, it is much easier and you can easily integrate it into your business.
Benefits of an E-Wallet for your business
If you have a physical or digital business, an E-Wallet can provide several advantages in improving payment processes. Here are some:
- Expanded Payment Options: Implementing an E-Wallet as a payment method significantly broadens the range of payment options for users, which can improve customer satisfaction and foster brand loyalty.
- Efficiency: E-Wallets can enhance the efficiency of payment processes by allowing faster and smoother transactions. Customers can make secure, real-time transactions using an E-Wallet.
- Security: E-Wallets also offer greater security for your business. By securely storing payment information on an encrypted platform, E-Wallets can reduce the risk of fraud and data theft. This can help build customer trust in your business and improve their perception of security. Additionally, users have greater control over their operations, with all transactions centralized in a single E-Wallet, even if they involve different cards.
- Accessibility: E-Wallets offer significant advantages in terms of accessibility, as they can be used from any location with internet access and through a mobile app. This means users can make transactions anytime and anywhere without relying on the availability of a physical store or ATM. This benefit was also discussed in our previous blog about Virtual POS (link to blog).
Conclusions
E-Wallets have become an increasingly popular form of payment due to their convenience, security, and accessibility. They allow users to store their banking data and credit cards in a mobile app. Businesses can integrate E-Wallets into their operations, and customers only need to enter their username and password to complete a purchase. This is easier and more convenient for the customer and more secure since the business does not have access to the user’s payment data.
So, if we had to say, what do E-Wallets and Wannme have in common? Both provide greater simplicity, convenience, and security to the payment process. Additionally, both offer more payment possibilities. With all banking information collected in the E-Wallet and payment information collected in Wannme, it is possible to personalize the payment quickly and adapt it 100% to the user’s preferences and needs.
Do these seem like enough reasons? We have more.
Join the digital payment revolution with Wannme and we’ll tell you more. Contact us.
