Digital wallets have become a default transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... method for many customers. The mobile-friendliness, convenience, and security of using digital wallets enable smooth purchases with minimal fuss, eliminating the challenges of manual transactions. In addition, digital wallets store credit/debit cardholder’s credentials within their mobile device, simplifying the transactional process.
Apple Pay and Google Pay (formerly known as Google Wallet) are two of the most widely used digital wallets. As a merchantA business that accepts credit cards for goods or services., offering digital wallet transactions can make your business more accessible to a broader pool of customers by enabling user-friendly payments.
What Are Digital Wallets and How Do They Work?
Digital wallets, sometimes called e-wallets, are contactless payment options that customers can conveniently use to check out from point-of-sale terminals or during an online transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account..... Users can quickly link credit and debit cards to their digital wallets on their mobile devices by manually keying in card details or scanning their physical card with the device’s built-in camera, capturing its details.
A user’s preferred digital wallet usually depends on the type of device they own and its respective operating system. For instance, iPhone users will go with Apple Pay, while Samsung Galaxy Note users will probably use Samsung Pay. In addition, digital wallets usually come pre-installed on a device, so users can readily access them upon purchase while skipping any onboarding.
With a digital wallet, customers can make fuss-free purchases via their mobile devices by unlocking them, opening the e-wallet app, and holding them close to a contactless payment terminalThe device by which a transaction is transmitted to the acquiring bank.. Alternatively, they can make online purchases by keying in their credit or debit card details on a site, unlocking their mobile devices, and authorizing their digital wallet.
A beep or vibration usually indicates a successful transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... when using digital wallets. In addition, with digital wallet payments, customers can avoid touching a PINPersonal Identification Number used by a cardholder to authenticate card ownership for ATM or debit card transactions. The cardholder enters his/her PIN into a PIN pad. The PIN is required to complete an ATM/debit card transaction. terminalThe device by which a transaction is transmitted to the acquiring bank. in brick-and-mortar settings when making a transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... for added convenience and contact-free hygiene.
Digital Wallet Safety Matters
Modern tech companies have continued to prioritize and improve the security standards of mobile wallets in recent years. As a result, while customers make payments directly using digital wallets on their mobile devices, they do not store sensitive information in plaintext that third parties can readily exploit.
Digital wallets usually offer tokenization and encryption that jumbles users’ financial information and password, making it extremely difficult for malicious parties to intercept the data delivered to a payment terminalThe device by which a transaction is transmitted to the acquiring bank..
Ultimately, the registered device is a verified bridge between customer accounts, the e-wallet application, and merchantA business that accepts credit cards for goods or services. accounts. Also, mobile wallets often come with built-in security measures such as OTPs (one-time pins) and multi-factor authentication that provide these accounts with added layers of safety.
How Do You Use a Digital Wallet?
Aside from seamless payment transactions, digital wallets also serve as secure one-stop storage for helpful documentation that can improve your customer’s overall experience. For instance, e-wallets may contain customer loyalty passes, where users can accumulate points and cash in on attractive rewards as they shop with your business.
The accessibility and security of digital wallets make it more convenient for customers to benefit from loyalty programs compared to conventional coupons and membership cards. Additionally, digital wallets will automatically sync with a customer’s device to provide them with the latest software versions and patch updates, maintaining accurate information.
Popular Digital Wallets
Over 150 million Americans have swapped cash and credit for digital wallets at least once. Most of these customers have turned to one of the top three digital wallets for faster, safer, and more reliable transactions.
Apple Pay
Apple Pay is a digital wallet that supports devices that run with iOS, iPadOS, and WatchOS apps. The wallet enables users to make quick and secure payment checkouts via biometric recognition, including face ID and fingerprint scans. Apple Pay has become one of the most popular digital wallets in the US, acquiring 43.9% of the nation’s mobile market shares.
Google Pay
Google Pay is one of the most popular digital wallets used worldwide, serving a large base of users with Android devices. In addition, many websites have utilized Google Pay as a preferred mode of payment, providing its service to over 150 million active users worldwide.
Samsung Pay
Samsung Pay has risen as the third-largest digital wallet in the world, serving over 16.3 million active users. Samsung also offers users added security protection, such as the Samsung Knox feature that constantly monitors phones for malware and potential cyber threats.
National Merchants Association — Guiding Your Business Through Digital Wallet Readiness
A Gallup poll shows that 62% of Americans expect the USA to become a cashless society within their lifetimes. As such, the lack of a digital wallet payment option might cost your business valuable customers and significant revenue in the long run.
The team of payments experts at National Merchants Association provides merchants with a focus on small businesses facing limited resources with the most suitable payment processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... arrangements and solutions that avoid unreasonable fees.
Our experts can recommend the most effective methods and approaches for transitioning your business toward digital wallet readiness in a cost-effective and fuss-free process. At National Merchants Association, We Work For You™. We can help you take the necessary steps to adapt your business to the incoming era of mobile money, where digital wallets may gradually become the primary mode of payment.
About National Merchants Association
National Merchants Association is a merchantA business that accepts credit cards for goods or services. advocacy group dedicated to reducing the unnecessary fees associated with accepting credit card payments. Since 2004, they have delivered tailored payment processing solutions and best-in-class merchantA business that accepts credit cards for goods or services. service and support for all levels of risk.
Whether high-risk or low-risk, brick-and-mortar or e-commerce, National Merchants Association will create the best processing experience for your business. For more information, visit legacy.nationalmerchants.com or call (866) 509-7199.