Small businesses are always in constant search of ways that can help them grow better and add ease to their daily operations. Fortunately, technology is always there to help them with the right type of tools and solutions.
‘Digital wallet’ is not a new term, but it certainly can open the doors to new opportunities for progress and profit for small businesses. Several reasons can prove the significance of digital wallets in the commercial world.
If you own a business, you should read them to get an Insight and understand the ways that can help you attain a better level of success.
What is a digital wallet?
A digital wallet is a software-based financial account in which a user can keep money and can use it to make purchases through a smartphone. It can also be used to keep digital coupons. Another term for the digital wallet is an e-wallet.
How can digital wallets prove significant for small businesses?
Now, it is time to count the points that prove the gravity of digital wallets for a business. Here is the mention of the irreplaceable role of e-wallets.
· Increase in sale
Definitely, it is the first and the most substantial reason for any small business to realize the importance of digital wallets. Your customers can pay you easily through this platform. People nowadays use digital wallets because of the ease they experience while making payments for multiple purposes.
If your product or service accepts digital wallet payments, it is easier for consumers to make quick buying decisions, increasing sales. Take the example of e-commerce sites where people select their desired products, add them to the cart and make immediate payments through their mobile wallets.
Speedy payment helps you get faster sales because if the customers have to follow a lengthy process to pay for your services, they may give a second thought before buying them, which can adversely affect the sales part.
| Examples of digital wallets |
| Apply Pay |
| Google Pay |
| Pay Pal One Touch |
| Microsoft Wallet |
· Easy setup and need minimum training for staff
E-wallets have an extremely easy setup. Just like installing multiple apps on your smartphone, you can install an e-wallet in a few seconds.
Besides, simple functioning makes it convenient to use without any complicated training experience for your staff.
You can install it in a few minutes, and a maximum of 1 hour can train your employees about its uses and functionality. It enhances the technological knowledge of people associated with a business which helps in further growth in the future.
Digital wallets are extremely predictable, and through an easy online tutorial or by exploring through self-study, one can immediately start using them for a decided purpose.
· Wider reach to customers through various shopping channels
Digital wallets are versatile and can be used on varied shopping channels for making payments. Through an e-wallet, you can get a broader reach to customers that use different modes of payments through their digital wallet.
For example –
- Traditional web
- Mobile apps
- QR code scanning
- Mobile websites etc.
These platforms make payments through a convenient connection with mobile wallets. Such features increase the market size you can cover and improve the chances of business extension. With a broader reach, it is possible to grow faster.
With time, every commercial entity has to change according to the time. Traditional methods are useful, but for enhancement and stay in the competition, a business has to accept new ways.
· Ease and enhancement of loyalty programs
We all know that programs facilitate the accumulation of customer databases and help make new strategies to attract prospective ones. Offering customers rewards, incentives, discounts and other perks becomes relatively easy through digital wallets.
Starbucks can be mentioned here as a relatable example that establishes the benefit of the digital wallet as a useful platform for managing its loyalty schemes. The retailer wallet of this coffeehouse giant offers coupons and reward points while applying focused marketing strategies.
As a small business, you can also grow faster by easily implementing loyalty schemes. The reach to an expansive market share can help you handle the uncertainties of the cut-throat competition.
· Obtaining funds for business is convenient
It is common for a small business owner to apply for several loans for various small and big reasons. The lending companies need to delve into the financial capacity, and a digital wallet can help to explain that calibre. As we know, mobile wallets have already improved sales manifold. Lenders take businesses seriously that uses advanced technology that uses smart technology, improving profit margins.
Mobile wallets give a better future, reach commercial entities, and make it easy to reach customers. In short, a business sounds promising on the financial part. Due to this, it becomes possible to get a loan even with an imperfect credit score performance.
It can benefit new business owners who apply for very bad credit loans no guarantor direct lender. Finance companies are always eager to scrutinize the approach of a business strategy of the applicant who makes smart use of the latest technology. It leaves a good impression, and obtaining funds becomes easy.
TYPES OF DIGITAL WALLETS
At your convenience, you can use different types of digital wallets that offer varied features. Here are those types, read and choose whichever suits best to your business.
- Closed wallet – In a closed wallet, the users can use the funds to make payments only to the issuer of the wallet. It is a restricted payment platform but, like any other type, has no compromise in information security.
- Semi-closed wallet – In a semi-closed digital wallet, the users can make payments to the merchants and locations listed with the wallet. To get a payment through such wallets, a business person needs to enter into an agreement or contract with the issuer of the e-wallet.
- Open wallet – The users of open wallets are free to make transactions for various business products and services. Besides, they also have the facility of withdrawing money from ATMs and banks and transferring funds is possible.
Now you can understand the importance of using digital wallets for your small business. The possibilities for growth are vast, and the ease of daily operations is another thing that makes you competitive in the industry. The outcome comes in the form of better sales and higher profit. NOT A BAD DEAL!! RIGHT?
