Will Mobile Wallets Be the Future of POS?
Mobile wallets have been around for several years now, albeit in the back of our minds. Of course, there is the occasional tech enthusiast who uses them religiously, but generally speaking, they only come into the forefront of our consciousness on that rare occasion when you’ve forgotten your real (physical) wallet. Since early 2020, Covid-19 has changed the way we pay for things. “Contactless payments preferred” has become the mantra for hygiene-conscious retailers and consumers and online shopping is more prevalent than ever before. Wallets are now the perfect answer to safer in-store payments, taking up their key role in retail point-of-sale POS systems.
Adoption
Mobile wallets were introduced back in 2014 as the future of point of sale transactions. Back then, they really did seem like the future. Adoption was slow, reserved for the young and trendy and Apple loyalists, indignant when stores didn’t support their new preferred way to pay. Covid 19 has changed all that, bringing them to the forefront at a time when we needed a safer way to pay. The fact that these products have been around for several years meant that we recognized the familiar icons on our phone screens, as well as trusted the big brand names behind them.
These factors were the building blocks for such rapid expansion. In the past two years, acceptance for these digital wallets has quickly expanded to meet market demand for contactless payment options. Although this surge is strongest amongst Gen Z and millennials, don’t be surprised to hear a younger user recommending them to someone perhaps more vulnerable than themselves, attesting to the fact that whether you’re trying to protect yourself or someone else, mobile wallets are here to stay.
Hybrid Channel Purchases
The pandemic turned the way we shop upside down, with more online and “hybrid channel” shopping than ever before. Retailers expanded their e-commerce offerings along with “hybrid” options of curbside pick up (where the customer remains in their vehicle), collecting in-store and superior delivery services. In-store shopping is now more often than not a planned activity with a specific purpose as opposed to a spur-of-the-moment trip. This has also meant that consumers are less likely to “impulse buy” and more likely to consider their purchases more thoroughly.
Behavioral Shift
Safety is a key motivator behind this behavioral shift, with people shunning cash payments for cards, contactless and digital wallets as their preferred payment methods. In light of the pandemic, both point-of-sale POS terminals and cash have been viewed as high-touch areas that are hard to keep clean or disinfect.
Speed and convenience are also strong pull factors, especially during a pandemic with people aiming to keep their visits to stores short. In only two years, it’s become hard to imagine a world where cash was our primary payment method. Figures indicate that more than half of consumers are now active general-purpose mobile wallet users. Among Gen Z and millennial consumers, this figure jumps to about two-thirds of users, and over 50% of Gen X users.
As mentioned above, digital wallets have long had their own group of supporters, from tech enthusiasts to brand loyalists. This group has now expanded in size and also started to make themselves heard, attempting to use mobile wallets at more and more retailers even though they may not be accepted.
Interestingly, some retailers have also begun to offer rewards such as coupons, discounts and free gifts incentivizing wallet usage. This combined with the polite notices displayed in almost every store requesting that customers use contactless payment methods where possible has cemented this shift in consumer behavior.
The Future of POS
No matter the product or industry, mobile wallets have the potential to reimagine our entire shopping and payment experience as a consumer. From contactless payments to self-checkout and checkout-free technologies (checking in to a store with a mobile wallet or scanning items into a mobile wallet), whatever the future holds for point-of-sale POS and consumer experience post-pandemic, it is clear that mobile wallets will play a key role in designing our future consumer payment experience.
Retailers cannot afford to overlook these digital solutions, no longer used by a mere minority but now adopted by around half of consumers. The changing face of our high streets, shopping centers and retail parks will be governed by these digital payment solutions as we become accustomed to living in a post-pandemic society. Today’s consumers have high expectations for speed and convenience, as well as hygiene. Mobile wallets are and have always been the answer for optimizing safer in-store payment methods, and we’re only just seeing things clearly now.
Crypto Mobile Wallets
Of course, crypto mobile wallets have also become available to users during these times. With more and more people investing in and trading crypto assets, the need for more accessibility when it comes to crypto payments drove many platforms to offer mobile solutions as well as encouraging many vendors to accept crypto payments.
It’s clear that the future of our financial habits is very different from what things looked like in the past decades when cash was the main form of making payments. People are constantly searching for safer and less-complicated options to quickly get on with transactions.
As the future becomes more decentralized, crypto mobile wallets, as well as crypto cards, will take over how we conduct transactions.
We at IXFI are well aware that things are changing for the better at a fast pace. With our own fast and safe Crypto Cards Solution, we want to be part of that change. Stick with IXFI, Your Friendly Crypto Exchange and visit our blog to learn more about the future of financial services.
