Bring in Dollars with Digital Wallets
- 3 Min Read
Many moons ago – four years to be exact – I was out enjoying a drink with my sister. I paid for mine with a credit card, causing a judgmental look from my sister and the questions, “You’re using a card for only one drink? Why don’t you use cash?”
Well, dear sister, let me tell you. One: on a rare occasion do I actually carry cash with me. Two: I might as well earn some rewards points while I’m out. She wasn’t convinced. Fast forward to the present, and not only are credit cards the norm for any type of purchase, but the physical cards have begun to take a back seat to digital wallets.
If you’re wondering what exactly a digital wallet is, let me fill you in. Digital wallets live on an electronic device, like your smartphone, to store your various payment information to allow for quick and easy purchases.
On more than one occasion I’ve found myself trying to memorize my credit card number so that I wouldn’t have to dig through my purse to find my card every time I wanted to make an online purchase. I will sadly admit that I always have my phone by my side, so having a digital wallet would make my purchases online even easier.
What does this mean for consumers? Less to carry around in their wallet. Less to lose. Ease.
What does this mean for advertisers? A growing opportunity. Some wallets offer the capability to place advertisements within their apps.
What does this mean for retailers? A more efficient way to get consumers through the check-out lane. Less transaction fees for retailers because fees are paid by the issuer, not the merchant.
Not only is payment efficiency a great improvement for retailers, but we also need to consider the non-payment side of digital wallets. Consumers want to have all of their loyalty cards and coupons in one place, and this gives them the opportunity to do so.
Just recently, I was shopping in a store when I used my smartphone to compare prices of competitors versus what I would pay if I used the store’s loyalty app. Overall, the retailers that mobilize their loyalty program are creating a much better consumer experience.
Generation Z and Millennials are open to this change, and Gen X and Baby Boomers are embracing it as well. While the universal acceptance of digital wallets hasn’t hit yet, it’s on course to soon. Do a little research and it won’t take you long to find rising usage predictions for digital wallets in the upcoming years.
But even while my wallet may change soon, one thing will not – I’m still going to squeal with joy when I find a penny on the ground in the parking lot.
If you’re looking to learn more about digital wallets and the marketing opportunities they present, we’d be happy to connect with you.