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.