The Convenience of Digital Wallets During COVID-19

Kim Miller, VP, business development for Payway, explains why retailers should seriously consider embracing digital wallets as it offers both consumers and retailers a convenient and safe purchase channel, especially in times of a pandemic.

How many of us have moved to using contactless payments during this pandemic? Whether it’s using a digital wallet (or e-wallet), a card-not-present payment such as how we pay for our Amazon or Instacart food and goods, a private label debit app on our phone or the use of ACH, mobile and digital payments are here to stay. By using digital payments, consumers can make safe transactions without using cash.

I’m not saying cash is going away, but given our new contactless way of life, there are more convenient ways to make payments these days. Let’s take a look at digital wallets for example as one of the most convenient ways to purchase goods and services.

Digital wallets largely eliminate the need to carry a physical wallet by storing all of a consumer’s payment information securely and compactly. They also offer another option to pay when shopping online (think PayPal) or at the gas station using a phone (think Apple Pay).

Some digital wallets not only afford ease of use, but also offer customers rewards and perks for using them. For instance, the Starbucks pay app, Target’s Wallet and Amazon Pay are digital wallets that offer perks like loyalty points and coupons. What better way is there to welcome customers back into stores and shops then rewarding them for their loyalty?

Digital wallets are also beneficial to businesses that collect consumer data so they can not only personally target consumers through loyalty programs and promotional offers, but they can also understand overall buying habits, stock up on the proper inventory and even optimize their workforce for busy times throughout the day. The more companies know about their customers’ purchasing habits, the more effectively they can market to them and service them.

Next time you’re getting ready to purchase gas, buy groceries or place an order for dinner, take a moment and consider your customer in the same or similar situation. Is this point-of-transaction an instance where offering to take a wallet payment would be more convenient? Would they feel safer and more at ease? Likely the answer is yes.

If you can provide that peace of mind for your customers during the unchartered times of COVID-19, your customer will remember how you helped them interact with fewer surfaces while providing an optimal — and easy — experience.

 

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