Digital Wallets to Change How Consumers Buy

As the smartphone technology becomes more prevalent and sophisticated, expect consumers to use their digital wallets more. According to PayPal, more consumers will use their mobile phones to pay for their purchases instead of using their credit cards.

The online payments company said that it is essentially placing your credit card to your phone. According to PayPal Australia spokesman Adrian Christie, this is a trend that can be expected to rise.

Christie added that with the rise of smartphone technology, merchants would have a more intelligent way of tracking their customers. Retailers would tell quickly if someone is a repeat customer and can decide swiftly whether to offer you a discount.

Smartphones can also be equipped to offer customers deals via their phones to entice them to walk in a store.

Customers can also access their savings account through their phones and pay when needed. Smartphones may also be used to claim loyalty points and even store e-receipts.

Christie says that to realize this scenario, businesses must learn to how to collaborate. Banks, credit card companies, retailers, e-commerce specialists and others must be involved in the payments chain.

JB Hi-Fi chief financial officer Richard Murray said the idea is enticing. The concept of ‘tap-and-go’ means retailers will move their goods quickly and more efficiently.

Data on electronic purchases and transactions can also give retailers valuable insights on how they can provide better customer experience.

Currently, Google Wallet is being tested in the US. The London Olympics is also trying out the digital wallet, with Visa and Samsung offering VIPs and selected athletes access to Visa payWave. Through the service, they can purchase merchandise using the payWave device from different retailers in London.