The new Avtaar of Transactions
When I hear "Digital Wallet", the first thought that comes to my mind is that it is the Digital version of my physical wallet, carrying the same things as my physical wallet (Money (Cash, Credit cards, Debit cards, etc.) & Proof of identity (Driver's license for example)), but in Digital format.
While there's nothing wrong with the physical wallet, there is only ONE big issue with it, that of SECURITY. It is very easy to lose it, it is very susceptible to theft, and the consequences could be scary:
· Card Frauds: Worldwide losses due to such frauds are estimated to be around $11.27 billion in 2012a
· Identity Theft: In US alone, Direct and indirect identity theft losses was close to $24.7 billion in 2012b
Now think of a digital wallet, which has all of your monetary & Identity information safely & securely guarded by a service provider (SP). All that you will need, to use your "Digital Wallet", is a unique PIN provided by the SP.
Safety & Security aside, the biggest benefit I see from a Digital Wallet, when the world is ready for it, is CONVENIENT & HASSLE-FREE transaction experience! And here's how:
· You go to a coffee shop / bakery, visit their app on your smartphone, place order & pay for it, 'Digitally', and leave.
· You go to your favorite Grocery store / Supermarket and pick up your items. You will simply make a 'Digital' payment on the store's app for what you picked up, and leave.
· You go to your favorite electronics / apparel store in the holiday season, but you no longer have to feel intimidated by the check-out queue. You will simply pay 'Digitally' on the store's app for what you picked up, and done!
Digital Wallet, in the presence of supporting infrastructure at the Retailers, will certainly reverse the impact of long queues on Sales & Customer Retention:
· Long queues have had detrimental effect on sales for the retailers.
i. In the US, back-to-school retailers end up losing around $21 billion of $55 billion due to long queues & slow check-outs c
ii. British Retailers lose over £ 1 Billion every year due to long queues d
2. Customer Retention
· Long queues create a negative impression in Customer's mind, about the retailer.
i. Poor customer service due to long queues cause UK businesses to lose 21 million customers a year e
ii. Customers in the US leave the store without making a purchase after waiting for more than 8 minutes f
1. 77% of such customers would avoid visiting the store in the future g
iii. The patience is lesser in UK customers, who will leave the store after 6 minutes of waiting time.
1. 56% of such customers would avoid visiting the store in the future h
What other things do YOU think digital wallet can impact & simplify?
To know more about Digital wallets and how you can leverage various innovative technologies to provide seamless and engaging customer experience, meet our experts at Retail's Big Show 2015. Schedule a meeting now. Visit www.infy.com/NRF15