In a world that’s gone mobile, it’s no surprise that digital wallets are growing in popularity. Mobile payments offer a more seamless checkout experience and often reduce transaction times, which meshes nicely with our society’s want for real-time, immediate service. But like all forms of technology, mobile payments are in a constant state of evolution. In order to prepare for how mobile payments will change, here’s a few things you should expect from this technology in the near future.
Successful digital wallets do more than provide a quick payment method. They incentivize use by offering rewards points each time the digital wallet is used. On top of that, these type of mobile payments track loyalty points and customer data. They also allow customers to shop straight from their mobile device. These innovations benefit consumers and merchants. Customers receive a greater level of convenience and merchants gain access to real-time data about their customer’s preferences.
Mobile devices are driving the on-demand economy and digital wallets will play a key role in this. Digital wallets will offer consumers a way to track the status of their orders, pre-purchase or reserve items and facilitate pick-ups and deliveries from their smartphones.
Shopping Alerts & Suggestions
With customer data and preferences stored on mobile devices, mobile wallets will start mining this information to send users personalized alerts on special deals, product suggestions and other notifications.
One of the top concerns about mobile payments is that they aren’t as secure as traditional methods. This is actually a misconception as mobile payments tend to be much safer for two reasons. First, every mobile transaction usually requires a pin code or some sort of biometric passcode such as a thumb print. Second, major mobile payment providers such as Apple, Google and Samsung all use tokenization to ensure card numbers aren’t stored on either the consumer’s phone or the retailer’s POS terminal. Tokenization is the process of substituting a data element with an equivalent, referred to as a token, that has no exploitable value. Tokens retain all the essential information of the data without compromising its security. While mobile payments already boast these top security features, expect mobile payment developers to continue adopting enhanced measures.
Even though only 14% of merchants offer POS that accepts digital wallets, a shift towards mobile payments is inevitable. Many merchants are already spending money to update their terminals to accept EMV cards. As mobile payments adoption increases, they should also upgrade to technology that is mobile payment friendly. Your customers (and business) will thank you.