Mobile Wallets – pandemic is boosting digital (2nd part)

Jun 02, 2020

In the previous blog, we explored the reasons behind the increasing popularity of mobile wallets all over the world and discussed why security concerns surrounding their use proved to be exaggerated.

Mobile wallets are not only extremely convenient for buyers, but also for merchants. They can encourage interaction with customers, bringing business closer to them when it matters the most.

Pandemic is boosting digital

Digitally savvy young generations were drivers of digitalization for years. When future global trends needed to be predicted, they were the go-to people to ask. But a global pandemic has changed it all: the need for online services has grown, making even the most reluctant users go digital. Some of the latest reports on European markets show a 200% online sales growth in the fields of health, building materials and products for children. We spend 20% more time on social media, video conferences became a new normal, and suddenly everyone is banking digitally. After overcoming the initial hurdle, most will not go back to traditional ways: it is fair to predict online shopping trends will not lose their momentum.

eCommerce opportunities in self-isolation

In order to ensure smooth sales operations, businesses suddenly became dependent on end-to-end online services: this includes advertising, many presales activities, as well as the final purchase steps. Essential goods are recording highest sales ever, but other purchases aren’t put on hold – such as fashion or sports equipment, which people have been dreaming of while waiting for the quarantine to be over.

Merchants depend on end-to-end mobile purchase journey.

This means targeting customers online and on social media, where they spend more time than ever. This is also a time to improve SEO (Search Engine Optimization). Reviews and ratings play an important role, providing consumers with all relevant information: businesses must be prepared to support even the most demanding buyers, so they can measure up to the experience of traditional shopping.

Mobile wallets take mobile purchase journey on the next level

Mobile Wallet Unyti, by Comtrade Fintech
Mobile Wallet Unyti, by Comtrade Fintech

A user who chooses to invest his/her time in brand’s content on social media is much more willing to spend money moments after. If your business strategy includes targeting users on mobile phones, this could be the right time to invest in mobile wallets.

Today’s users demand safe services: predictable, transparent and easy to use. Along with a great user experience, security is one of the most important notions in digital tools adoption. When making a mobile wallet payment in a payment gateway, users can confirm transaction with a PIN or a fingerprint (depending on the security requests). The purchase is wrapped up in matter of seconds, while filling in long forms and sharing credit card data to various retailers becomes a thing of the past. Security wise, it is step forward, since Card not present transactions are much more prone to various frauds.

A gateway that supports mobile wallets allows customers to confirm payment instantly, resulting in more money spent and less carts abandoned. Because the procedure is so fast and easy, consumers tend to spend more and more online, which is always good news for the retailers.

Various retailers report that online sales revenues from shoppers using mobile phones have surpassed the online sales revenue from customers using PCs and tablets in 2017. Mobile customers buy much more frequently and spend significantly more per year. (source)

Cash is past, welcome to contactless future

The epidemic will surely affect all processes in which stakeholders interact with one another. In the future, we will continue to shop in stores, but contactless payments will be the first choice. There is really no need to use cash, paper bills, card slips, as well as to constantly enter pin codes.

Mobile wallets make it easier for users to pay, while the merchant receives the payment at the end of the working day. However, in order to enable on-site mobile payments in physical stores, some adjustments are needed, and smaller businesses should be aware of the costs attached.

NFC technology

One type of contactless payment is supported by NFC, the near-field-communication technology. It works using the same chip technology as contactless credit cards: customers simply use their phones instead of cards. Nevertheless, this requires investments: NFC tags, payment terminals and databases are necessary. Without a proper database, scanners have nothing to decode, even if they have detected a transmitting chip. Here we are talking one-off cost, that might need periodic updates.

QR payments

The most common type of mobile payments worldwide is QR codes. This is a much more financially viable option for most small and medium-sized businesses, since the technology doesn’t require that much investment.

QR payment, source:Clover
QR payment, source:Clover

The process goes like this: the merchant prints out a receipt with QR code; the buyer then opens the mobile wallet app, scans QR code, receives transaction details and simply confirms payment by entering PIN.

By introducing mobile wallets, merchants will not necessarily avoid credit card transaction costs. Only mobile wallets based on a bank account will help avoid credit card processing fees.

Every credit card transaction – conducted using a mobile phone or a physical credit card – is transmitted through the card’s (Visa or MasterCard) network. After that, it goes through the payment processor, which contacts the issuing bank for approval. The issuing bank approves or denies the transaction based on the availability of the consumer’s funds. This process generates approx. 2% of transaction costs; a percentage of total and a per-transaction fee.

Marketing opportunities

Whether you’re an owner of an online store, a bar or beauty salon, Mobile Wallets can open significant marketing opportunities.


Mobile Wallet marketing opportunities
Mobile Wallet marketing opportunities

Going beyond loyalty schemes

Loyalty Card issuing or Overview of points collected: mobile wallets can help you go beyond simple loyalty programs, making the experience more convenient for both consumer and merchant. Optimizing loyalty through mobile wallets is simply another way to position your business and keep motivating your customers.


User centric direct marketing campaigns

Transaction data gives an incredibly accurate insight into which type of consumer an individual is. Does he spend for outdoor sports? Then he’d appreciate real-time messages about discounts and special offers for camping equipment and trekking. If you’re a bar owner where a customer spends most money on beer, treat him with a happy-hour invitation for Saint Patrick’s Day.

See where this is going? Complete overview of a person’s expenses provides excellent ground for user segmentation. Merchants can merge similar spending profiles and create personalized campaigns. This way, they address true customer’s needs, which results in them buying more.

Mobile wallet as a communication channel
Mobile wallet as a communication channel

Communication channel

A mobile wallet that also acts as a direct communication channel between customers and merchants can encourage interaction, bringing businesses closer to the customer. With real-time responses, like details on warranty, delivery times or return requires, they can be a great feedback tool. Customers will appreciate that you are there for them no matter the location. Having a 360-degree customer review is an advantage business can use to nurture relations. 

Fewer clicks, higher sales

When it comes to contemporary shopping, convenience and contactless interaction are crucial. Brands must be able to keep close relations with their customers – even in times when choosing distance means they care – so they can most effectively convert visits and clicks into purchases.


Meet Unyti, a Mobile Wallet

  • Unyti Wallet enables fast and easy money transfers, such as payments in physical and online shops, or money transfers between friends and family members.
  • Our mobile wallet enhances eCommerce with direct marketing and communication possibilities.
  • It encourages interaction between merchants and customers.
  • It enables cross-selling, bringing businesses closer to customers than ever.
  • Unyti Wallet can be integrated into digital banking, creating a great advantage for banks in their competition with Neobanks.

Interested in more? Contact us or download your Whitepaper here.

Deni Radović
Deni RadovićBusiness Analyst

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