Digital wallets: what they are and their advantages for your ecommerce

With the numerous technological advances we’ve experienced in recent years, the digitalization of payment methods was inevitable. Nowadays, it’s very common for consumers to pay using electronic wallets, also known as “digital wallets.”

At PaynoPain—a Spanish fintech specializing in online payment tools—we conducted a survey on “New payment method habits in Spain 2023.” We discovered that digital wallets are the second most popular payment method in daily transactions, surpassed only by the card.

What are digital wallets?

A secure and flexible payment solution for your ecommerce

Digital wallets are payment tools that allow you to make transactions both online and in-store. They function like a traditional wallet, but are adapted to the digital world. Typically, they appear as apps that securely store your card details, eliminating the need for the physical card.
A wallet operates through software that links your bank account’s payment data with the provider processing the transaction. There are two main types:

• Open wallets: Enable online purchases, contactless payments, and refunds.
• Semi-closed/closed wallets: Only allow transactions at specific merchants.

The most used digital wallets in Spain

Discover the most popular digital wallets among your customersIn the Spanish market, several digital wallets stand out for their popularity and advanced features. With Paylands, you can integrate the leading wallets into your store:

• Google Pay: allows your customers to make online and in-store payments quickly and securely using their Google account. This digital wallet enables payments from various devices, whether it’s a smartphone, smartwatch, or another Android device with NFC technology.
• Apple Pay: exclusive to iOS devices, Apple Pay securely stores card information and facilitates payments at physical and online points of sale. It offers fast and secure transactions, backed by over 500 million users worldwide.
• PayPal: one of the most widely used digital wallets globally, with over 430 million active accounts. Its platform allows users to link bank accounts and credit cards for secure online purchases, as well as transfer money between individuals.
• Click to Pay: available for Visa and Mastercard, it simplifies the online payment process by allowing customers to complete their purchases with a single click. By securely storing payment data, Click to Pay eliminates the need to re-enter payment details for each transaction, thus streamlining the checkout process and increasing approval rates.

Why accept payments with digital wallets in your store?

Integrating these digital wallets into your ecommerce enhances both the shopping experience for your customers and your store’s conversion rate, while keeping your business aligned with the latest trends in payment methods.

Advantages of integrating digital wallets in your online store

Convenient and secure payments

Digital wallets offer numerous benefits that make them increasingly popular among consumers, benefiting merchants as well. Key advantages include:

Greater convenience

Consumers no longer need to carry cash or cards. With digital wallets, they can complete purchases with just a few clicks. A smartphone is enough to pay in stores, restaurants, and online shops with a single tap. This convenience—avoiding the manual entry of card details—enhances the user experience.

Maximum security

Digital wallets provide high levels of security by employing tokenization and multi-factor authentication. This means that card data is not directly shared with merchants, reducing the risk of fraud and data theft. For ecommerce, this translates to fewer disputes and chargebacks, and builds greater customer trust.

Improved financial management

Digital wallet apps help users track their expenses in detail. Customers can access a complete history of their transactions anytime, giving them a clear view of their spending patterns and enabling informed budgeting decisions.

Many of these apps also offer additional tools, such as expense categorization, payment alerts, and personalized financial analysis, helping users manage their money more efficiently and reach their financial goals.

No geographic limitations

Digital wallets allow users to make payments quickly and securely from anywhere in the world. This is especially beneficial for travelers who want to avoid carrying large amounts of cash or multiple cards. Such flexibility not only provides convenience during travel but also eliminates concerns related to currency exchange and potential banking restrictions abroad.

Boost your business’s conversion rate

The ease and speed of payments via digital wallets can significantly increase an ecommerce’s conversion rate. Consumers are more likely to complete a purchase when the payment process is simple and quick. By removing barriers at checkout, digital wallets help convert more visits into successful sales.

Integrate digital wallets in your ecommerce and increase conversion

A better shopping experience for your customers

It’s increasingly clear that consumers prefer accessible, secure, and user-friendly payment methods. Digital wallets have emerged as one of the favorite payment methods because they offer significant benefits, such as enhanced security and convenience, without the drawbacks of traditional payment methods.

If you’d like to integrate these payment solutions into your business, simply complete the form below and we’ll get in touch with you.