Digital wallets are just simply great. Not only they help you be efficient in your daily life it also grants you freedom. From making a payment using NFC technologies to Verifying user’s age. Use cases are abundant.
What is a digital wallet?
A digital wallet is a system that securely stores users’ payment information and passwords for numerous payment methods and websites.
By using a digital wallet, users can complete purchases easily and quickly with near-field communications technology (NFC). They can also create stronger passwords without worrying about whether they will be able to remember them later. As information provided on investopedia
This allows your customers to proceed with payments quick and efficient while being less worried about potential fraud. Resulting in great user experience. Digital wallets have seen a rise in the last few years as user demand for fast and simple payment solutions has been on rising.
Mobile payments & Digital Wallets
Combined technologies allow users to complete a purchase from their mobile device. Digital wallet empowered by mobile payment solutions helps clients to pay for their goods with a quick tap. This further increases user satisfaction for speed and efficiency, driving your business further and building a relationship with your customer.
Additionally, businesses can build engagement with their clients. By building a communication channel that will help increase loyalty and prolong lifetime value (LTV) of the customer, making them regular users of services. It also allows offering tailored made offers based on a user’s individual use of services further increasing the relationship between user and business.
It’s a win-win scenario. Customers can benefit from speedier, safer transactions and more tailor-made offers to meet their needs, and businesses can increase their loyalty, prolong LTV and measure more accurately what works better for their customers.
Identity Verification in Digital Wallets
While Digital wallets offer great benefits to both sides – users and businesses, it also has some challenges. Companies that want to scale their operations using digital wallets, need to comply with basic Know Your Customer processes.
Remote user onboarding means you need to identify your customers that will be using your services. Some sort of customer due diligence (CDD) processes needs to be implemented. And it can be tricky. Building legal compliance departments is not easy, but also can quickly become expensive and inefficient. To meet KYC/CDD standards you will have to conduct user verification.