5 Ways That Innovative Companies Use Digital Wallets

Digital wallets are sweeping different industries from retail to technology and banking, and are seeing a rapid rise in consumer adoption. But what are wallet based payment systems?

A digital wallet or an e-payment service is either an online or mobile solution that lets individuals and companies conduct transactions electronically. 

It, first and foremost, offers convenience in transactions because there is no need for physical money to change hands. That is why eMarketer forecasts in a report that the number of mobile payment users will increase to 74.9 million in 2022. By that time, the transaction value of proximity mobile payments will also go up to $160.79 with a difference of $98.5 billion from the 2018 figure. 

But e-wallets are more than just convenient payment methods. There are other digital wallets advantages and disadvantages, too. In this post, we will discuss some of the pros of using this technology below, especially how innovative companies are using it in their operations. 

To hasten on-site payment processing

Processing cash payments can be cumbersome. You have to wait for customers to fish money out of their wallets or purses and to count their change before they leave the counter. It can also be a bit of a problem when a purchaser hands you a large bill to pay for a small amount, leaving you with fewer bills in your cash drawer so you have to hunt for change when you face the next person in the queue. Either way, it takes up a lot of time, both yours and your consumers’. 

Fortunately, there is a resolution to your cash processing woes: digital wallets. According to The Pew Consumer Project, usage of mobile payments is growing steadily despite the fact that cash and plastic cards still rule. You can take advantage of this trend by making sure your business is ready to accept emerging technologies for payments. 

To that end, you can look at popular digital wallets examples and integrate them with your POS or ePOS. And since all people need to do is present their mobile wallet at the check-out register, you can receive their payments instantly and in less than a minute. 

To provide customers with tough security

A digital payment does not require customers to provide their card details to merchants, which gives them the peace of mind that their financial information is secure. This is possible because, for every transaction, the digital wallet produces a unique and random string of numbers to provide to the business in lieu of the actual debit or credit card number. 

Moreover, a mobile payment gateway also would not store the actual account number on the user’s smartphone. This is on top of strong encryption and stringent security measures such as two-factor authentication and fingerprint lock. 

To pay bills automatically

Settling utility bills and the like is time-consuming because you need to go to the biller’s office or payment center. And if you are busy with your operations, it is possible that you are unable to pay them on time. Or worse, forget to settle your dues and have a penalty charge heaped over your previous bill. 

You can avoid those dilemmas by configuring automatic payments to merchants, which you can do using your digital wallet. Since your credit cards are linked with the app, you can charge the transactions to your selected card easily. Not only is this convenient, but this also gives you a good amount of time before you have to pay for everything. 

As such, you do not have to bustle to find the cash that you need to pay your balances. 

To avoid bad debt 

When clients are incapable of paying for your products or services on time, it is possible that you run into some bad debt. You can avert this situation by configuring an e wallet payment system for your business. This means that your customers can pay on the spot and no longer make forgotten checks a reason to make you wait. What’s more, by letting your partners pay you using their smartphones, you can reduce the occurrences of chargebacks. 

Other than that, you can resolve your cash flow problems and pay your vendors on time. 

To bundle with loyalty programs

Digital wallets are not just for accepting and making payments, however. You can also leverage them for your loyalty programs. Take a cue from Starbucks. Despite being limited for use in their stores, their digital payment solution trumps those of Google, Apple, and Samsung by linking it with their loyalty program. Other businesses are also experiencing a high rate of success in doing so, as eMarketer points out in an article about mobile and proximity payments. 

By using mobile wallets for this reason, you can make it easy for your customers to receive points even when they have lost, misplaced, or forgotten their actual loyalty cards. You can also leverage this technology by offering perks and discounts to patrons who use a certain payment method to facilitate adoption. 

Making the move towards digital payments

Mobile payment adoption is increasing in the US alone and it is likely that it will rise globally in the coming years. Before then, you can set up your business for success by configuring your POS and ePOS to accept payments from different virtual wallets to provide customers with a faster and secure option. There are different ways to measure success in this regard but you can reach your objectives (or even go beyond them) with the help of the right tools. 

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UPI merchant payments witness 15% rise in June

As more digital payment firms are working to provide a more easy way to accept merchant payment, it seems to have been contributing to rise in the share of merchant payments on Unified Payments Interface (UPI).

As per the latest report, merchant payments on UPI has grown 15% from April to 31% in June. Close to 240 million merchant payments were reported last month, said an ET report.

For payment firms, the rise of merchant transactions is a significant development as a number of instances for merchant payments is higher than p2p transactions.

As per Industry observers, this is at the initial stage and merchant payment has huge potential to get it developed into a large scale.

Of late, a couple of players in the space moved to merchant payments through offline acceptance point.

Last month, Paytm announced to invest money in offline merchant expansion, for which it claims to have high-frequency usage. It said to partner over 20 million kirana stores enabling them to accept the digital mode of payments including UPI, wallets and cards.

Whereas Flipkart-owned PhonePe, has also claimed to made headways towards offline merchant payments. It claims to have 5 million offline merchants.

Google Pay also partnered with Paypal to help a merchant accept payments online.

According to the last month report, Google-owned payments app had recorded 240 million UPI transactions amounting to Rs 55,000 crore in May whereas PhonePe and Paytm registered 230 million and 200 million transactions worth Rs 44,000 crore and Rs 38,200 crore respectively. Whereas in merchants payments, it contributes between 10- 20% of the overall numbers.

In May, Paytm claimed to clocked over 70 million of the estimated 120 million UPI-based merchant transactions. With about a 10% MoM growth in this segment, it has claimed to have 60% of UPI-based merchant payments market share.

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

UPI records 754.54 Mn transactions in June; BHIM continues to struggle

Unified Payments Interface (UPI) has recorded 754.54 million transactions worth Rs 1,46,566.35 crore in June. As compared to May, this is close to 3% increase in transaction volume and a 4% decrease in transaction value.

Till date, UPI has also recorded the second highest figure for transaction volume. In May, it crossed Rs 1.5 trillion worth transaction mark by clocking 733.54 million transactions.

While NPCI-owned entity has been able to maintain its mojo, government regulated BHIM has once again failed to fire. In May, BHIM has recorded 15.77 million transactions worth Rs 6,627.42 crore that slumped down to 15.49 million transactions amounting to Rs 6,202.49.

The reason behind BHIM’s flat show is the rapid growth of private players in this space such as Google Pay, Paytm and PhonePe.

In May, Google Pay had registered 240 million transactions amounting to Rs 55,000 crore and dethroned its arch-rivals to become the largest contributor of NPCI-owned unified payment railroad.

On the contrary, PhonePe and Paytm registered 230 million and 200 million transactions worth Rs 44,000 crore and Rs 38,200 crore respectively.

The aforementioned private entities have not revealed their transaction figure for June.

NPCI-regulated inter-bank electronic funds transfer system (IMPS) has also recorded a slight downfall from 183.33 million transactions worth Rs 1,80,456.44 crore in May to 171.33 million transactions worth Rs 1,73,019.27 crore in June.

Meanwhile, RBI has proposed for waiving off charges that are applied on bank transfers carried out by National Electronic Funds Transfer (NEFT) or Real Time Gross Settlement System (RTGS). To push digital transactions, the new payment fee structure will be applicable from today (01/07/2019).

There is no such announcement for IMPS

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source: https://entrackr.com/2019/07/upi-transaction-june/

UPI recorded close to 800 Mn transaction in March

UPI Interface

NPCI-owned payments railroad UPI has achieved a new milestone in March. The unified payments interface recorded almost 800 million (799.54 Mn) transaction amounting to Rs 1,33,460.72 in last month. It was an 18 per cent hike in transaction volume and over 25 per cent rise in transaction value.

In February (28 days), UPI registered 674.19 million transactions worth Rs 1,06,737.12 crore. In terms of transaction value, it was one of the highest leaps for UPI where it crossed Rs 1.3 trillion figure.

BHIM

@NPCI_BHIM

Cashless transactions have now become simpler and convenient thanks to BHIM UPI. @dilipasbe

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Meanwhile, NPCI-regulated inter-bank electronic funds transfer system (IMPS) has once again become the hottest option chosen for fund transfer. The instant payment feature recorded 190.18 million transactions worth Rs 1,76,288.88 crore.

In February, IMPS registered  166.37 million transactions amounting to 1,49,342.60 crore.

The growth in UPI transactions has come on the back of faster adoption in UPI-based payments apps such as government promoted BHIM and private players like Paytm, Google Pay, Phonepe and others.

While BHIM continued to struggle for the past 3-4 months, Google Pay and PhonePe have grabbed the opportunity to compete against the market leader – Paytm.

For instance, Paytm reportedly clocked 221 million transaction volume in January followed by PhonePe and Google Pay that recorded about 220 million UPI transaction each.

Recently, Google Pay has also revealed that it achieved 45 million monthly active userslandmark and hit $81 billion annualised transaction run rate in March.

Apart from the aforementioned entities, there are 139 banks live on UPI platform.

Over the past year, domestic and global players have been throwing their hat in the fray to taste the success of UPI in India. Of late, Xiaomi and Amazon have launched their UPI-powered payment feature in India, on the other hand, Reliance Jio and Tencent-owned WeChat are also in the pipeline to launch it soon.

wallet script - rpay

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Source : https://entrackr.com/2019/04/upi-800-mn-transaction-march/

Tencent is launching UPI-powered payments app WeChat Pay in India

Ever since its launch in April 2016, Unified Payment Interface (UPI) has been growing quickly and reached a milestone of Rs 1 trillion worth monthly transactions in December 2018. Sensing the opportunity in digital payments space, several global behemoths including Google, Amazon, WhatsApp and Xiaomi jumped to UPI bandwagon.

Following the footprints of above four global behemoths, Tencent-owned WeChat is also launching a UPI-enabled separate app for payments.

“Senior officials of Tencent comprising of Chinese as well as Indians met National Payment Corporation of India (NPCI) executives three weeks ago for obtaining a licence for full-fledged payments app,” said two sources inside NPCI on condition of anonymity.

Like Google Pay, it would operate only under UPI ecosystem. Sources emphasised that the app is likely to be named as it’s in China – WeChat Pay. “Tencent already had partnered with three banks – Axis Bank, HDFC and ICICI. It wants to have its own UPI handle (@wechat),” outlined sources.

The app would be launched by the end of May-June. “The company is registering an Indian entity for WeChat Pay,” outlined one of the internal sources at Tencent India.

In China, Tencent’s WeChat Pay is the second most popular payments app after Alipay. Last year it crossed more active users than Alipay’s 520 million in early 2018. While popularity of Ten Pay is largely driven by WeChat’s 1 billion plus DAUs, it’s not the case in India. Despite trying hard and spending hundreds of millions, Tencent failed to gain significant traction for WeChat.

Tencent’s plan to launch an UPI-powered payments app in India has come at a time when its game PUBG has been gaining quick popularity in the country. Since PUBG offers several in-app items for purchases, it could use WeChat Pay as by default payments option locally.

With the entry of Amazon and Xiaomi, the UPI ecosystem has become overcrowded and also turned hyper-competitive for incumbents like Paytm, PhonePe and Google Pay. Given that RIL-owned Jio and WeChat are also joining the UPI ecosystem, the battle for digital payments would be more fierce as well as expensive.

wallet script - rpay

Looking forward to develop a digital payment app? Then Our RPay is the right choice. We have talented designers and developers to turn your ideas into an excellent solution