Is Your Business Compatible with Digital Wallets?
One of the growing trends right now is a move toward digital wallets. Mobile payments are increasingly popular, even in brick and mortar stores. If your business is going to succeed, you need to consider whether or not your business is compatible with ecash digital wallets.
Payment systems are becoming increasingly mobile, and your business needs to be ready for that, or risk falling behind.
Millennials Don’t Trust Banks or Credit Cards
There is evidence to suggest that millennials don’t trust banks — at least not as they are currently constituted. According to the Millennial Disruption Index, banking is at the greatest risk of disruption. Many millennials aren’t interested in traditional banking.
I know that I maybe make it into the bank once every two or three months, and that’s only because I live in an area where cash is still a big part of many transactions. But that is likely to change at some point in the relatively near future.
Not only that, many millennials aren’t interested in credit cards. They prefer debit cards. Digital wallets that connect them to their own money are more likely to gain traction than those that focus on stored credit cards.
Don’t forget that, in many cases, millennials are interested in using mobile payments to send money person to person instantly. They use epayments in a way that is different from many of those that have come before. Being compatible with digital wallets that allow for these instant interactions, without the need for an exchange of bills or any sort of a physical swipe is essential for your business success in the coming years.
Could Individual Payments Be Next?
Smaller, leaner, more mobile businesses might even benefit from a trend toward digital wallets and this sort of person to person payment approach. Right now, businesses pay a cut to payment processors, whether it’s MasterCard or PayPal. In some cases, though, it’s possible to even manage your own payments. Starbucks has its own payment app that allows you to order and pay for your coffee from your phone. Facebook lets you send money, instantly, to others. There are a number of companies creating their own digital wallets and payment systems that allow them to get around the increasing fees from credit cards and other processors.
If you want to be able to better interact with your customers you need to be on top of digital wallets. Being able to accept payments electronically is a big deal because the rising generation isn’t going to pay with what we consider traditional methods going forward. Look ahead to what is likely to be the next step. Figure out how you can incorporate digital wallets and mobile payments into your system so that you can move forward with your business, and offer your customers the payment options they prefer.