Our mobile devices may contain an e-wallet that supports a variety of transactions. These payment transactions that the electronic wallet has the capacity to do include that of consumer-to-online, consumer-to-machine, consumer-to-business, and consumer-to-consumer. Mobile payments provide us with the flexibility of making a transaction at any time as long as we are connected to the internet.
The speed of processing transactions at that point in purchasing goods or services does bring about impulsive buying to many. It is so tempting to shop online especially when there are promos and deals. While some like to go browsing for products, other internet savvy shoppers make studied decisions when buying by reading the reviews and comparing prices.
About cash payments
There are wave-to-go transactions that also eliminates the need for paying in cash. Banknotes and coins are no longer cost-effective for merchants to accept as a payment method. It takes time to count money, give change, and secure the cash in a vault. If all payments are either swiped using a debit or credit card or using a mobile app, it would save the merchant a lot of time and the associated risks of holding large amounts of cash such as being a target of robbers.
Other in-app features
A mobile application that is used as a payment method can be used for marketing. Some mobile payment store apps have features that bring about customer loyalty. Integrated into such apps are rewards, discounts, and promotions. There are gaming apps that integrate a payment method into it so that their user can buy things that they need to level up. There are so many different applications such as an online shopping site that has a checkout.
An emotional connection to cash
There are many people who still wonder if e-wallets will replace physical wallets. With the fast-rising popularity of digital payments worldwide, it may be more popular than paying in cash in some nations but cannot, in the near future, replace cash completely. There are still a lot of people that have an emotional connection to cash, such as those who want to see bundles of money in their vault.
Barriers that are difficult to overcome
Many consumers are not ready to embrace digital payments. There are barriers that, as of now, are difficult to overcome. Several areas around the world are not ready to make the switch to mobile payments as there are few payment terminals, lack of strong internet, and there are several who still use mobile devices that are not capable of downloading online payment apps.
Using a mobile device is the most convenient way to send funds. For those who use mobile payments frequently, cash transactions are a thing of the past, especially since a lot prefer to do contactless transactions. There is a level of safety that digital payments has especially since there is no need to touch anything. There are several people who no longer want to hold cash that is handed to them by someone else for fear that it might be a source of getting infected by the Coronavirus.