This 21st century has paved the way for the latest innovations in technology. The Dot-Com Bubble in the 1990s in the United States of America is one of the major reasons why technological know-how is craved by every business in the world right now. Although, many ecommerce businesses during that period have vanished entirely, some have not only survived but thrived such as Amazon (now one of the Big Four in tech companies around the world) and eBay (one of the top ecommerce businesses in the 21st century). Nowadays, many businesses are looking to go online hoping to mimic the success of the Dot-Com Bubble survivors.
Even though there are countless examples of technological innovations in the 21st century, one of the foremost is, of course, mobile applications (apps). Apps have completely changed the way we live. The tasks we used to perform physically are now done from our fingertips and from the comfort of our abodes. These include, but are not limited to, counting the steps we take in a day, maintaining our daily diet, and paying for services at stores via our mobile phones. This latter category is known otherwise as mobile wallet apps.
In order to get acquainted with mobile wallet apps, we must first distinguish them from mobile payment apps.
Difference between mobile wallet apps and mobile payment apps
The major distinction between mobile wallet apps and mobile payment apps is that the former is used to make payments at retail points while the latter is used to make payments for products and/or services online on a smartphone.
Growth of mobile wallet apps
People most often confuse the functions of mobile wallet apps and mobile payments app but the above paragraph should have made their distinction abundantly clear. There has been a dramatic increase in the downloads for mobile wallet apps worldwide.
Advantages to Customers of using Mobile Wallet Apps
- Safety: Security is one of the primary motivations behind customers opting to utilise mobile wallet apps. Money in physical wallets can get lost or get stolen and this applies similarly to credit and debit cards. But with a digital wallet, all the financial data is tucked safely away in your smartphone so you don’t have to worry about physical money or bank cards.
- Convenience: To obtain physical money you need to visit your nearest bank branch or the closest ATM. Having a mobile wallet app installed on your smartphone means that you can access your funds anytime, anywhere.
- Rewards: The loyalty systems associated with mobile wallet apps such as Google Pay and Samsung Pay are quite attractive to consumers and are seen as one of the primary reasons why users start preferring digital wallets over bank cards.
List of Industries which can Benefit from Mobile Wallet Apps
- Banks: As apps for storing money digitally are being frequently utilized at a daily basis, banks can also profit off of mobile wallet apps. Although banks, especially those based in China and India, are hurting from the rise of non-bank related mobile wallet apps, banks themselves can counter this competition by introducing their own digital wallets. Banks must know where to start. They already have their customers’ data stored with them, so by researching customer buying patterns, they can use this information to allow their mobile wallets to properly compete with bestselling digital wallets in the market. One major reason why people are preferring to use cards less and less is because of banks’ faulty reward systems. Some apps have attractive loyalty systems with Samsung Pay offering a $5 reward for 2000 points gained by using their app. So, banks should brainstorm reward system ideas so that their app gets more downloads. Security and privacy are one of the main reasons people switch to using apps instead of the conventional ways of payment. Therefore, people will trust mobile wallet apps from banks more than digital wallet apps from tech companies, as banks are already seen as secure institutions.
- Small ecommerce businesses: Remember how we previously discussed about the rapid rise of ecommerce businesses in the 21st century owing to the Dot-Com Bubble in the 20th century? Well, these businesses can profit off of mobile wallet apps as well. Not only will customers be attracted to an ecommerce business if they offer mobile wallet payment capability, but businesses will benefit from the abundance of data that they can gain from their consumers. They can use this data to not only check out what a consumer likes and dislikes, but also to improve their reward system as well as their security features. Also, your business will seem up to date with the latest in technology in the eyes of consumers if you offer digital wallet compatibility.