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!
Today, we are witnessing the explosive growth of alternative payment methods. In 2017, alternative payment providers were responsible for more than 50% of global e-commerce sales, a figure that experts agree will continue to climb. If you still think that cash, debit cards, and credit cards are the only way to pay for your good and services, then let me introduce you to eWallets.
An electronic wallet, or eWallet, is best understood as a virtual cashless service which can replace hard cash notes and bank issued credit and debit cards. Whether you’re sending money to the other side of the world or simply across the room, transactions are completed in a matter of seconds. From inexpensive inter-bank transfers, to smartphone payment apps and local card schemes, eWallets are dominating the alternative payment marketplace.
Easy to use and set-up, eWallets are the fastest growing payment method in the world. SolidTrust Pay, Alipay, Qiwi and PayPal are all examples of popular eWallet providers. China is currently home to the world’s largest share of online shoppers using eWallets, while the majority of online shoppers in Mexico, Italy, and Spain have already turned to digital payment services to complete their transactions, shunning credit cards in favour of the versatility inherent in eWallet platforms.
The popularity of eWallets among consumers presents a unique opportunity for businesses. With over 300 different types of payments in the world of e-commerce, it is vital for entrepreneurs to understand their customers’ preferred payment methods. The most common alternative payment methods are bank transfers, direct debits, eWallets, mobile payments, local card schemes, pre-pay, post-pay, and eInvoices.
Popular Alternative Payment Methods
Online: Customers use their online or real-time banking information to transfer money with immediate online authorization.
Offline: Enables your customers to make an ofﬂine payment by using a payment reference (authorization is delayed).
Easy to use, this is the fastest growing payment method in the world and increasingly popular across all sectors.
These are primarily low-value or predictable recurring transactions such as subscriptions.
Direct Carrier Billing: Increasingly important in developing markets such as Africa, this is a quick and simple payment method whereby shoppers simply provide their phone number.
Mobile Wallets: There is a growing choice of mobile wallet payment options that operate in your local country or territory. Few are capable of global reach yet.
Local Card Schemes
These schemes often operate like traditional cards but, in most cases, only in specific domestic markets. Some are more sophisticated, for example, offering card and bank transfer options.
Customers are required to buy a card or voucher before starting a transaction. These payment types are usually authorised immediately.
When your customer buys a product or service online, they pay for it later at an affiliated outlet or store. In most cases, the delay between the initial transaction and settlement means this will not work if you are selling perishable goods and time-sensitive purchases, such as travel tickets.
Your customer pays for their goods after delivery without sharing credit card or bank details.
It’s that time of year again. No, I’m not talking about Christmas, it’s Training Day!
On Thursday, December 13th, all SolidTrust Pay employees will be undergoing compliance and security training in an effort to better serve you. As a result, our Live Chat will be unavailable on this day, but you will still be able to leave a support ticket for us at any time.
Please also be aware that document verification review times will be affected.
We apologize for any inconvenience this may cause.