There’s no shortage of innovation that takes place within the payment processing industry. While it’s interesting to keep an eye on what’s being developed, a lot of new developments fail to make any type of huge splash on their own. However, they often do have a noticeable impact as part of a larger trend.
If we look across the current payment landscape in 2017, digital wallets fit that description perfectly. Although it seems like countless companies have thrown their hat into this ring, none have walked away as the clear winner. But, because so many big players have put significant resources behind persuading consumers to use digital wallets, the idea of paying in person without using cash or even a card is no longer out of the ordinary.
Instead, plenty of consumers have really embraced the idea of being able to leave their physical wallet at home, knowing that they can just pull out their phone if they need to make a purchase. This type of behavior has become especially prevalent among millennial consumers.
Millennials Are Leading Users of Digital Wallets
As digital natives – with at least 25 percent of millennials carrying less than $5 in cash at any time – it’s easy to see why digital wallets are such a popular choice for this group of consumers. In addition to feeling comfortable about the security measures in place for digital wallets, one of the key reasons millennials like this type of payment technology is that it gives them real-time information and control over their spending activity.
Key Technology Trends Linked to Digital Wallets
The shift to on-demand commerce also ties in well with the popular use of digital wallets. As consumers get used to being able to pick up food or get transportation with just a few taps, these expectations shift to online purchases. Ecommerce leaders like Amazon are even investing in ways to speed up deliveries. Bluetooth technology is being synced with mobile payment solutions like digital wallets. Even the focus on voice technology means that some of the biggest companies in the world are working hard to make voice compatible with digital wallets, turning it into the go-to for people’s online experiences. Soon, online payment processing will be an even more seamless experience.
What This Means for Your Business
Between the current use of digital wallets by millennials and other key consumer demographics, along with several notable technology trends that tie in directly with this type of payment, digital wallet use is going to continue to grow rapidly, soon becoming the primary way to pay for all your purchases.
As a result, it’s important for your business to be in a position to serve customers who want to pay with a digital wallet. If your current processor doesn’t make it easy to accept these types of payments, looking into a new processing company should be a priority.