Digital wallets, electronic wallets or e-wallets have irrevocably created a paradigm shift in online shopping stated Bahaa Abdul Hussein. Kids today may not remember credit cards but they’re familiar with the likes of PayPal, Venmo, Zelle, Google Pay, Apple Pay, Amazon Pay and Samsung Pay. E-wallets and e-commerce have a positive influence on each other and are growing in tandem. Let’s look at some of the main areas and roles that digital wallets play in the realm of e-commerce.
Digital wallets are making up for the shortcomings of traditional payment systems. They’ve done away with the stress of having to key in your credit card details every time or waiting for bank transactions to come through. Real-time and instantaneous payment from remote locations is now possible with e-wallets.
Boosting the economy
The working population with a purchasing power on the rise and sellers who want to receive payments immediately are both benefited by easy and quick digital payments. This in turn boosts the economy and keeps e-commerce sites gaining profits, leading to investment in better consumer experiences.
Contactless and hassle-free
The shopping scene has vastly changed in the post-pandemic scenario where people prefer to make frictionless payments from home. The number of steps between searching for a product and making the final purchase have significantly been lowered in the era of digital payments. A few taps of buttons will have the product delivered at your doorstep in no time.
Targeting Gen Z
Digital payments are also a hit with the younger population who are all using some e-wallet or the other today. Targeting the chronically online generation is a good idea as their lives revolve around fast fashion, TikTok trends and always looking for new and interesting things to buy. They all prefer e-wallets than having to deal with cash, credit and debit cards.
Gift cards & loyalty programs
Many e-commerce sites have made it extremely simple and easy to send gift cards to our loved ones from our e-wallets.
There are also special offers, cashbacks and loyalty programs exclusive to those who make use of digital wallets.
Cross border payments
PayPal has reimagined money transfer on a global scale. When even the banking system fails to send money easily across borders due to the hassle of red tapism, PayPal steps in to save the day. We can now shop for products from anywhere in the world with the help of e-wallets that can send money abroad.
IoT devices
IoT (Internet of Things) devices like smart TVs, smart refrigerators, smart watches and smart speakers are now equipped with digital payment methods. The way we interact with shopping online and in real life has changed a lot in recent times.
Tickets
Digital wallets can also buy and store many tickets like movie tickets, concert tickets, flight tickets, train tickets and so on. For all these reasons, the close relationship between e-wallets and e-commerce is one that is teeming with endless potential and advantages.
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