Thanks to digital wallet, cash and cards are no longer the necessities when we get out. When you go shopping online, go to the supermarket offline, take a bus or taxi, or have dinner at a restaurant, you are likely to use digital wallet to pay. Statistics from Experian imply that “digital payments grew to about $721 billion in 2017.”

digital wallet - Will Digital Wallet Be the Future of Payment?

The prevalence of digital wallet will make your payment more convenient. With this payment tool, you don’t need to take the heavy coins and it’s much safer without too much money in the pocket. What’s more, you could bind different bank accounts to your digital wallet so as to manage your accounts more conveniently.

Although digital wallet is advanced in many aspects, a lot of customers in the US are still worried about the payment security, it’s said that over 50% of them still prefer to pay by credit card. The digital wallet companies are therefore making efforts to improve technology such as fingerprint identification and face recognition, and remind customers to guarantee the security of both transaction and privacy.

While there’s no doubt that digital wallet has become a vital payment option that retailers would like to embrace. A research to top 100 retailers and to top 50 online retailers in the US shows “62% of the top 100 retailers have some form of digital-wallet payment options.”

With digital wallet, retailer could track the users’ consuming behavior which acts as the valuable data resource that helps retailers improve their marketing strategies. They are able to make personalized sales plan according to different consuming habits. Moreover, customers could get a good user experience from the safe payment option.

Digital wallet is an essential payment tool for retailers in e-commerce industry as the whole process of transaction is conducted online. Especially in B2C area, digital wallet develops rapidly. Retailers tend to choose the platforms which provide suitable payment service.

In order to conform to the market demand, some powerful e-commerce platforms had developed their own payment tools and kept on optimizing the functions. For example, Amazon develops Amazon Pay and Alibaba owns its payment product of Alipay. Both of them are widely used. And some small ecommerce platforms choose to use them by cooperating with the famous ones. At the same time, some third-party payment service providers emerge. PayPal is a good example. Larger numbers of ecommerce platforms and enterprises have chosen to use it as their main payment tool.

But in B2B e-commerce area, digital wallet is not as popular as that in B2C. International payment brings challenges to the cross-border e-commerce platforms. Payment taking place in real-time is not so easy for most international B2B transaction. The B2B e-commerce platforms and suppliers should pay attention to the policy shifts and technology innovation, which may help become competitive by providing good payment service.

B2B e-commerce platforms always cooperate with reliable banks or other financial agencies to support their payment system. Take JumoreGlobal as an example, this cross-border ecommerce platform cooperates with PayPal, making it possible to pay in small amount online, and provides relative financial services for suppliers. It’s sure that the payment process will continuously improve in the B2B area.

So what’s the future of digital wallet? Is it possible to be used widely in every industry? Welcome to share your opinions with us.

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