In a previous blog post, we briefly toured the burgeoning world of alternative payment methods, an industry that has overtaken credit cards as the dominant online payment method for consumer goods and services. Already, alternative payment methods account for just over 50% of global online retail payments, up 3% from 2016. This represents a momentous shift in how we transact with one another. For much of human history, bartering dominated exchanges, with the first coin being minted in 600 BCE by King Alyattes in Lydia, which is now part of Turkey. Coins slowly evolved into banknotes in the 17th century, while the first universal credit card, which could be used at more than on establishment, was introduced by Diners Club in 1950.
Today, we are witnessing another transformation as digital wallets are quickly becoming the preferred payment method for millions of consumers. Termed eWallets, they offer us the opportunity to perform mobile payments, instantly send money to family and friends, pay bills, purchase goods and services, and even dabble in cryptocurrencies such as Bitcoin and Ethereum. As an emerging technology, we are seeing a proliferation of eWallet providers, with consumers under the age of 30 intensifying demand. A recent report compiled by American Express singled out Millennials and Generation Z’ers as drivers of eWallet adoption, with more than 33% of Millennials engaging with their smartphones “more than anything else.”
But this raises an important question, why are eWallets heralded as the future of commerce? Three reasons stand out.
1) eWallets exemplify transparency. They render every transaction completely traceable, with each dollar exchanged being logged into your eWallet account statement and ready for you to view at your convenience on your smartphone or tablet.
2) In one word, safety. Digital wallets use authentication, live monitoring, and data encryption to secure your personal information. For these reasons, many experts consider banking on mobile devices to be more secure than traditional online banking, as mobile operating systems make use of “sandboxing architecture” which isolates individual apps from malicious malware.
3) Digital wallets are fast and easy to use. With an eWallet, online payments can be made in just a few easy clicks and all your credit cards and banking information can be stored in one account, meaning that you won’t have to waste time filling out endless boxes with your payment details every time you make an online purchase.
eWallets and Small Business
Business owners will have the most to gain from adopting a comprehensive eWallet solution tailored to their business needs. As digital wallets and cryptocurrencies become increasingly popular, merchants that do not accept digital payment options will be negatively impacted as consumers look elsewhere for their purchases. This is why prioritizing your customer’s preferred payment method cannot be overlooked. At SolidTrust Pay, we are more than a convenient online eWallet and payment services gateway, we have over 12 years of experience helping merchants drive growth through the integration of bespoke e-commerce payment solutions.
Which is your favourite eWallet? Let us know in the comments below or on our official SolidTrust Pay Facebook page. Also, if you enjoyed this post, please follow us on Facebook and Twitter for news, updates, and more great content!