What is Role Of The Digital Wallet Revolution in the Economy?- Mobile Financial Solution (MFS)

dikshatechnology

507
views

What is Role Of The Digital Wallet Revolution in the Economy?- Mobile Financial Solution (MFS)

The horizons of digital wallets are broadening by the day and changing rapidly. It is not only about offering an alternate payment method.

The Digital Wallet Revolution and its Role in the Economy- Mobile Financial Solution (MFS)

The horizons of digital wallets are broadening by the day and changing rapidly. It is not only about offering an alternate payment method.

Businesses of all sizes must focus on creating a payment infrastructure that provides an array of customer experiences, along with finding new channels of revenue. Choosing the right payment processing partner has never been more critical to your bottom line.

Neo-age Digital Buyers are primarily driven by convenience.
While the decision-making process has become much faster, thanks to mobile commerce, it also calls for frictionless payment methods. Digital wallets answer the need.
They are quick, convenient, and give consumers more power to spend and earn rewards, encouraging loyalty.
They can be used at multiple POS, be in digital or physical shops, easily with a mobile device.
They are proliferating in new and perhaps unexpected ways, from wearables to connected homes to automobiles.

Digital wallets have varied functions, including P2P payments and other payment methods, balance inquiry and reporting functions, supporting loyalty programs and acting as a marketplace.

In terms of economics, mobile wallets are enablers of commerce in lieu of a standalone revenue generator. An additional benefit is to increase customer retention by bridging the gap between customer and financial institutions.

The Age of Fast Buying

The fast evolution of payment technology coupled with demographic trends across the globe shows the growing demand among consumers for a hassle-free and quick checkout experience. According to a recent study by JP Morgan Chase,

Digital Commerce volume was above $ 3 trillion in 2017 and is expected to double by 2022.
In the US alone, approximately 110 million people are using Digital wallets across various POS.
One out of every four users ended up spending more while using digital wallets.
3 out of every 4 customers find digital wallets more convenient

Across the globe, the trend is universal,

50% of Generation Y uses Digital Wallets regularly, and the older groups are also propelling the trend
40% of Generation X embraced Digital Wallets in 2018
17% of Baby Boomers used wallets in 2018

The Challenges in Payment Scenario:

Although there has been an increase in the penetration of digital payments yet concerns of privacy and security, remain a significant source of concern
Competition from credit/debit cards pose to be an excellent challenge for mobile wallet adoption
Not all applications are made for all operating systems/devices. Consumers are looking for convenient options to make their payments and compatibility issues may hamper their experience
Lack of an integrated platform in the e-wallet space
Moving beyond core offerings and adding collateral services
Lack of self-service portal

While financial solutions are available aplenty in the existing ecosystem, the gap lies in providing a unified end to end platform, which caters to both businesses and consumers alike. Businesses are looking for additional revenue streams, and consumers are waiting to discover more convenient means of engaging with businesses.

Thus, the need arises for a comprehensive and all-encompassing solution that will ensure a robust cash flow into the system.

Driving Growth for Economy

Digital wallets have the potential to create new revenue opportunities and aid service enhancement and differentiation for various players from different eco-systems encompassing mobile, retail and financial services.

Wallets have resulted in an unprecedented explosion in digital wallet service launches, globally where online players, operators, vendors, banks, merchants are battling for a market share. It is the point of convergence for remote as well as proximity payments, mobile advertising and a whole lot of value-added services.

One of the first features of a digital wallet is that it has the potential to generate exponential amounts of customer & financial data. This data is particularly useful for merchants and advertisers as it helps them in targeted marketing.

The Wallet of the Future:

The Solution: Diksha MFS

Diksha presents its integrated Mobile Financial Solution (MFS). It is a payment-enabled mobile marketplace that drives businesses towards digitization and provides additional revenue streams for the company. It is intended to improve consumer convenience, leverage data, serve up offers, lessen friction, or lower the cost of payments.