Although digital wallets have been around for a few years, their adoption into mainstream payment processes has been slow. Even though the banking, financial, and retail marketplaces have welcomed both the concept and its benefits, customers are still hesitant to commit to them as their default option.
One reason is that digitizing payment information comes with its own challenges, even though the infrastructure and technology are there. The enduring concern for customers is changing their fears and perceptions related to security and their hesitancy to share more information with yet another digitized online tool.
How to Overcome the Hesitancy, the Ongoing Insecurity …
Whereas traditional payment methods such as cash or credit are foundational to the banking and finance industries, digital wallets are not universally accepted, restricted to their own devices per se. Moreover, for many consumers., switching between mobile wallets based on where they are shopping creates unnecessary payment antagonism. To overcome this perpetual reluctance, banks, financial institutions, and merchants need to get people to accept and normalize their usage of online transactions, processing, and digital wallets, achieved by promoting loyalty.
Loyalty Programs and Reward Schemes: The Perfect Segway.
Loyalty programs and reward schemes are not new, tactical marketing concepts. However, they are [loyalty programs and rewards], the perfect segway to ease people into the digital wallet universe. The focal point is not money but personal and financial information. People get to use their respective digital wallets without sharing any banking information. Instead., they use the wallet’s functionality to redeem their loyalty points from the merchant. As such, loyalty programs and reward schemes are a win/ win situation for the consumer, the banker, the financier, and the merchant. The consumer gets value without having to return anything. At the same time, the merchants are ‘educating, training’ their clientele in how to use their digital wallets to their advantage, incentivizing them to use their wallets just as they already do with cash and their credit cards.
The Youtap Connection
Youtap has integrated loyalty platforms into their customized networks that tactically market loyalty programs and reward schemes, initiatives designed to ensure customer loyalty, incentivizing them across devices, and what defines loyalty. Youtap recognizes this connection and continues to advance and develop inclusive software and platforms founded on loyalty and consumer retention.
Converging Loyalty With Digital Wallets and Payment
Customer retention converges with personalized loyalty encouraged and fostered through digital wallet algorithms and software. As such, digital wallets are the perfect medium to maximize loyalty programs and reward schemes. Their infrastructure allows them [digital wallets and reward schemes] to be installed natively and seamlessly used without distraction or inconvenience, rewarding the customers’ loyalty with convenience and time. Banks, financial institutions, and retailers continue digitalizing their goods and services, making digital wallets another extension of transformation in payment processing and loyalty.