Jul 26, 2017
Today, there are many ways or a merchant to accept money to process a transaction. If you manage a brick and mortar retailer, then you’ve seen cash, checks and credit cards all used as tender on a daily basis. More and more, shops are also seeing a new form of payment that comes from digital wallets. These new innovations may soon be the standard for all payments around the Web, and in store.
How Digital Wallets Work
Essentially, digital wallets utilize a device (usually a smartphone) to send data to another device. Sometimes, both devices are phones (or a phone and a tablet), but registers are increasingly able to handle this type of transaction as well. Chips on the devices help to encrypt the data that is sent from one device to another.
All the user needs to do is keep his device safe from theft. Even if the device is stolen, the user can wipe account data remotely and change the password on the digital wallet. Sophisticated features on the phone often prompt the user for credentials when utilizing the payment. In addition, the user also has the option to limit the funds placed in a digital wallet.
Wallets are linked to the user’s bank accounts, so customers will funnel money between the two accounts. The wallet will hold money from international transactions as well, such as payment for contract work.
The future economy will rely on digital payments, which offer faster transfer rates and a more secure exchange of money to people around the world.
Expanding into Retail
According to Charge.com, the demand for retailers to accept diverse methods of payment is growing. More consumers want to use a digital wallet, a debit card, cash or smartphone payment methods interchangeably.
That’s put a great deal of pressure on retailers to adopt new technologies that can meet this growing demand. In addition, smaller shops struggle implementing systems without proper support. A strong merchant service provider usually provides a robust support system, including installation assistance, in order to set the system up and ensure some success using it.
That said, this is new territory for many retailers. Training employees to meet customers out on the sales floor and accept payment outside of the typical register is a huge ask for growing retailers. The big brands have mastered these arts, and deploy big data to help them understand customer buying habits. In the future, in addition to big data, mobile payment processing is going to be an important component for instant gratification.