Samiksha Hiwase | 5 Min Read | November 26, 2020
1. Quick read
One of the main features of your website which helps in converting sales is the Payment Method. More people choose to buy from websites that offer them varied payment alternatives.
While some buyers opt for Cash On Delivery, others may choose to pay through a card. Of late, the trend of payments via a virtual wallet has taken eCommerce by storm. The Wallet characteristic in eCommerce websites is contributing more than its fair share to the conversion ratio. In the last few years, there has been a rise of 75% in the number of advanced wallet users. Users admit that it’s way more convenient to pay using a Wallet rather than paying cash or through a card.
This article introduces you to the Wallet feature and why the Wallet is growing in importance in the marketplace.
2. What is mean by the Wallet feature
The Digital Wallet feature or a digital pocket is a medium that permits customers to make online transactions to deposit cash for future use. Digital wallets let you pay bills online without having to go through your bank account and run the risk of illegal access to your bank account. Just load cash in your virtual wallet and then use it for making payments.
The consumer’s bank account and credentials are linked to the digital wallet and that’s how the cash is deposited into the latter for future use. Most eCommerce sites have a virtual wallet feature since it allows users to conduct transactions smoothly.
eCommerce agencies either have their very own virtual pocket function or team up with eCommerce groups that provide these offerings, like Paypal, Stripe, Paytm, Rupay and so forth.
3. Why is the Wallet feature necessary in eCommerce?
When a customer shops from an online store and clears the payment, this payment then automatically gets deducted from the customer’s online wallet or digital pocket. In the absence of the wallet, the customer would have had to route this payment through her bank account or credit/debit card, which is a tedious process. Thus, having this digital payment gateway as an alternative has improved the ease and speed of conducting online purchases.
Three reasons why customers should opt for an advanced wallet
Increased protection layers:
Every time you are making a web purchase, and you pay through net banking, Debit, or Credit Card, you risk revealing your banking information. Despite the best levels of information encryption, there is always a small window of chance that your financial records may get compromised. While using a wallet, you don’t need to enter your bank details or card details for any online purchases.
Loyalty points and discounts:
When a customer uses a virtual wallet, it can be combined with a host of benefits and special offers. Especially in the case of up-coming companies, they can offer discounts such as cashback, special deals, and other freebies to attract and retain users. The concept of converting loyalty points into wallet cash is also possible in wallets.
Ease of usage:
As per RBI, banks must implement a two-part confirmation to approve payments. This includes presenting your personal password and a one-time device-generated password. In some cases, due to heavy server load, the one-time password may not be generated and shared in time. This can result in payments being denied and loss of sales.
The use of wallets precludes such issues. Bills can be paid conveniently when you have money loaded into your wallet account. Similarly, when orders are canceled, then too, the refunds are processed into the wallet with a minimum time lag as compared to bank accounts, which may take 2-3 working days.
Customers can also choose to have a single wallet for all family members, making them simpler to handle.
4. Advantages of Wallet System
A lengthy checkout system is a turn-off for most buyers. One of the ways by which the checkout time is extended is if users have to choose a method of payment each time they complete their shopping and reach the payment options. And if the net connection is poor, then the experience becomes worse. This often results in an “Abandoned Cart”, which is one of the worst enemies of sellers.
The Virtual pocket or e-wallet characteristic is the savior in such times. Since the amount is deducted from the wallet, the purchaser need not undergo the rigmarole of providing credentials repeatedly for each transaction.
Pleasurable Shopping Experience
The wallet is an easy payment mode that does not require much effort and gives the customers a fulfilling buying experience, which results in customer retention.
In addition, users have the option to purchase products that are on sale or on discount for a limited period because the check out process is shortened. This results in a rise in sales and has long-term benefits.
The Wallet characteristic of eCommerce websites makes customers feel more secure and in control of the payment method. Whenever they shop, they need not worry about whether they will be able to complete the payment process or not.
Paying via digital pocket offers them an “On-The-Go” purchase experience. The wallet feature is versatile enough to be compatible with mobile payments as well.
Ease of Returns and Refunds
An unavoidable aspect of sales is returns and cancellations. Sellers cannot force clients not to cancel or return products they don’t like or don’t match their perceived needs. But these returns can be converted into a positive experience for users. This can be done by providing refunds through a quick and problem-free refund of the amounts into their wallets. This gesture also helps with customer retention.
TThe use of an e-wallet is quite simple, the customers simply need to add the amount to their wallet and connect their card or internet-banking account to the wallet. The amount is automatically deducted from the wallet at the time of the checkout if the wallet is selected as the payment mode.
Best of all, it is absolutely secure because of the 3D end to end encryption. Plus each person can make the payment from anywhere, even with the use of mobile gadgets like mobile phones or tablets.
5. Wrapping up
For the Wallet System, the admin can set the restriction. The admin can add or deduct the amount from the purchaser’s wallet. Also, the whole transaction information can be viewed by both Admin and Customer/Buyer. The wallet framework can even be coordinated with an application on a different stage to allow the users to make payment through the wallet – like Magento2. If you have any query on setting up the Wallet feature on your eCommerce website, you can contact us anytime with a small brief and we will get back to you.