Mobile wallets are a tricky innovation of digital commerce. We’ve had the technology to deploy mobile wallets for years, and many consumers have mobile wallet solutions installed onto their smartphones and tablets. At the same time, those consumers are still reluctant to use mobile wallets on a regular basis. Whether for security reasons, the limited opportunities to pay with a mobile wallet, or simply a resistance to change, shoppers still prefer to pay with plastic and even cash whenever possible.
Consequently, businesses are none too interested in driving this innovation. The task of accepting mobile wallets requires an upgrade of payment processing technology, and this cost is one many companies would like to avoid. This broad resistance to mobile wallet technology presents a great opportunity for businesses that choose to move ahead of the curve. If mobile wallet technology truly is inevitable–and many think it is–then becoming an early adopter could have a huge payoff. Here’s why.
1. Tech-savvy consumers want businesses to adapt
Perhaps the majority of U.S. consumers are slow to embrace mobile wallet technology, but the payment solution is slowly gaining traction and building its adoption base. There are already a group of dedicated consumers that prefer mobile payment solutions over any form of payment processing, businesses can get in the good graces of those consumers by adopting the technology with their own business.
It’s important to keep in mind that when you adopt mobile wallet processing, you don’t automatically stop accepting other payment methods. The process of adopting mobile wallets across all retailers and businesses will take quite some time, so consumers who aren’t ready for this technology can continue being served just as always. It only requires a little adaptation on the part of businesses, and this adaptation will set them up for future.
2. Cheaper processing fees could save you money in the long run
Credit card payment processing is extremely costly to businesses, which is why many smaller companies sometimes refuse credit cards entirely. But by refusing credit card payments, businesses also risk alienating their consumer base. In short, there’s no easy solution that avoids complications entirely.
Mobile wallets may not solve all of those problems, but they can give consumers an extra option that offers cheaper processing costs for the business and the customer. Services like Google Wallet, PayPal Here and others can connect to bank accounts easily and offer a non-cash solution that businesses might prefer. Over time, businesses could encourage their customers to make payments through mobile wallets, helping them manage their money on a smartphone or tablet while cutting out costly credit card charges–and making payment processing cheaper for all.
3. Information integrated with mobile wallet solutions could assist your marketing efforts
Mobile wallets are uniquely linked to a consumer’s information–or at least they can be, in most cases. This is a huge opportunity for businesses looking to integrate mobile wallets with their digital marketing efforts. By accepting mobile wallet payments, businesses could gain access to the user profiles of consumers with registered mobile wallet accounts.
Even when a consumer makes a simple purchase in-store or online, the business could automatically receive contact info, including email addresses and phone numbers, all of which can be used to target those consumers through various digital campaigns. This is a fantastic option for acquiring highly qualified leads–in this case, those leads are past customers, making them very likely to repeat.
Mobile walleting technology can be intimidating for businesses that aren’t familiar with how it works. If you’re ready to embrace mobile wallets but don’t know how to get started, let DBC Digital help you build toward a better future.
Greg Sherwood is CEO of DBC Digital, a marketing agency based in Denver, Colorado. With over 30 years of marketing experience with traditional and inbound (internet) marketing, Greg helps mid-sized businesses get a better return on their marketing dollars.
You can reach Greg at (303) 357-5757 or at dbc@dbcdigital.com
