Digital wallets: payments always at hand

Sunday, June 25, 2023 4 minute read

4 minute read

More than 7 in 10 adults now use their smartphone as soon as they wake up—with 96% owning a mobile phone. From social media and gaming through to browsing shopping websites and making online purchases, smartphones are an essential, everyday accessory. And, our familiarity with contactless payments and mCommerce has set the scene for smartphones to grow more central to transaction experiences, with digital wallets keeping physical wallets more out of sight than ever before. The Central Bank of Ireland’s card payment statistics report continues to highlight the growing percentage of contactless payments that are made through digital wallets.

Here’s how digital wallets work and how they benefit businesses.

Digital wallets in action

Digital wallets are virtual versions of your customers’ physical wallets. They securely store debit and credit card details that can be accessed easily and quickly through a smartphone or wearable device. Popular digital wallets include Google Pay, Apple Pay and Samsung Pay.

Customers store their payment information securely in their digital wallet and simply tap and go, as they would with a physical card, to seamlessly complete a transaction. This eliminates the need to repeatedly enter credit card details for each online purchase. If required, customers provide a passcode or biometric verification to authorise a transaction.

Making it happen: payment rails and NFC technology

Digital wallets utilise the same payment infrastructure — the payment rails — that already operates with credit and debit cards. This allows the same networks and processors to operate with a digital wallet as they would with a physical card. Following the same process ensures consistency and reliability without unexpected difficulties at the point of sale.

Near Field Communication (NFC) technology allows digital wallets to communicate with card terminals for in-person transactions. When a shopper moves their digital wallet close to a card terminal at checkout, the terminal receives the signal from the customer’s digital device and validates the purchase. It may sound complex but, for both the customer and seller, the interaction takes less than a few seconds.

Businesses benefit: accepting digital wallets

Payment without limits

Another key driver in the increase in digital wallet transactions is the growing awareness that there is no limit in Ireland when making a digital wallet payment, unlike physical card transactions which have a contactless limit set at €50.

In our 2023 Business Insights survey, a surprising number of businesses were unaware of the “no contactless limit” for digital wallet transactions. In fact, 42% of businesses surveyed believed there was a contactless limit on digital wallet payments.

With no contactless payment limit on digital wallet transactions, customers can make larger purchases through their smartphone or wearable device. This makes it easier to pay and increases customer satisfaction in the final stages of their purchasing journey, which can lead to increased revenue for your business.

Secure payment experiences

Digital wallet transactions don’t require a tap-and-go limit because of built-in security features on these mobile devices. Digital wallets also utilize advanced security measures such as tokenisation and encryption to protect customer payment information. This helps mitigate the risk of fraud and unauthorized access to sensitive data, instilling trust in customers at the point of sale.

Payment always at hand

Customers are making purchases through an item they are rarely without. And, businesses are meeting digital wallet payment experiences with modern payment solutions. Don’t miss out on offering seamless digital wallet payment options. Speak with us to get started today.

Recommended for you