Why You Should Consider Mobile Wallet Integration
Do you have high shopping cart abandonment rates? Are you struggling with the cost of frequent development changes to accommodate new payment types? Are you living in the dark ages of e-commerce by only offering payment by Visa and MasterCard?
Statista predicts that by the year 2020, almost 50% of e-commerce will be happening via mobile devices. When you add in the fact that cart abandonment rates are on the rise and are extremely expensive to e-commerce businesses, coming up with as many ways as possible to make the process easy is a no-brainer, and integrating a mobile wallet solution may be your answer.
It makes it easy for your customers
One of the biggest reasons that customers abandon their shopping carts is because the checkout process is too cumbersome or confusing, as much as 27% according to Annex Cloud. Leveraging digital wallet technology allows users to reduce the time they spend inputting the same information over again into your site, and that time savings can increase the number of people who follow through on their final purchase with you.
It costs you less money over time
When you integrate with an existing mobile wallet solution, you’ll likely pay some sort of per-transaction fee. That transaction fee will be similar to a credit card transaction fee, and in some cases less. What you get with the mobile wallet that is unique is the range of payment options your users are accustomed to seeing without any separate integration and development on your behalf for different methods of payment. If you integrate using PayPal’s mobile wallet, and next week PayPal adds the Diner’s Club card to their offering (which is already part of their standard offering, by the way), you automatically can take that new card without changing anything.
It also saves you money in liability and processing for the charges themselves. If you are handling the individual transactions through your own website (or, heaven forbid, storing credit card or other financial data about your users), you become exponentially more at-risk and liable for potential nefarious actors getting ahold of that data. In fact, there are some business insurance companies that won’t even insure you for cyber liability if you store this data yourself.
Conversely, if you integrate with a mobile wallet provided by a reputable third-party, you won’t ever see or store sensitive financial data, and you limit your costs, risk and liability dramatically. You will simply ask the service if the charge is approved, and if not, appropriately handle any errors with the user.
You’re much more likely to close more sales
Making things easier on the user will always turn into more impulse purchases and follow-through on shopping cart finalization. It’s one of the brilliant things about Amazon (who offers Amazon Pay as their mobile wallet solution): with free (sometimes next day) shipping and an estimated 606 MILLION products for the US market at your fingertips, it’s easy to pick up that thing you really want right now. The closer you can get to that, the more conversions to sales you’ll realize, translating into more revenue.
Your users will feel safer
There’s a reason that the number of identity theft protection companies is on the rise: it’s because the number of cases of identity and credit card theft are dramatically rising. Users are much more willing to trust a big-name financial entity (like Amazon, PayPal or Stripe) with their data than they are a random e-commerce site. You give your users much more peace of mind when you allow the big guys to handle their sensitive data, and they’ll be more likely to buy from you because they aren’t potentially risking their financial lives to do so.
Remember to think through the implications to your business and the costs of implementation before diving in to your integration plan. In most (if not all) cases, this decision will ultimately increase the revenue to your business; but as always, you need to consider the timing, up-front costs and potential disruption in your user experience BEFORE your developer starts writing code. APP planning is the name of the game to make mobile wallet integration smooth and easy for your users.
GotAnAppIdea is an app design and app development company, primarily working with new ideas in the earliest stages of incubation. As one of the top app development companies in the Denver, CO, area, we help new start-ups get from idea to execution planning quickly, efficiently and with as little time and money invested up front as possible. Our philosophy is that failing quick and often leads our clients to better outcomes, bigger businesses, and healthier work-life balance. Need Android app development, iOS app development or app design help? Call us today!