Rise of digital wallets: advantages for your ecommerce

With the many technological advances we have experienced in recent years, the digitization of payment methods was imminent. Nowadays it is very common for consumers to pay through electronic wallets, also known as “digital wallets”.

From PaynoPain, as a Spanish fintech specialized in the development of online payment tools, we have conducted a survey about the “New habits in payment methods in Spain 2023”.  In this survey we discovered that wallets are the second most used method to pay in the daily life of users, only behind the card.

Digital wallets for ecommerce

Digital wallets are payment tools that allow you to make both online and physical payments. They work like a traditional wallet, but adapted to the digital environment. Generally, they come in the form of applications that securely store your card data, eliminating the need to have the physical card at hand.

A wallet works through software that links the payment data from the bank account to the provider processing the transaction. There are open wallets and semi-closed or closed wallets. The former allows online shopping, contactless payment and receiving refunds, while in the latter you can only make transactions at specific merchants. 

Best digital wallets in Spain

In the Spanish market, several digital wallets stand out for their popularity and advanced functionalities. With Paylands, you will be able to integrate the main wallets in the market into your business:

• Google Pay
• Apple Pay
• Paypal
• Click to pay

This not only improves the shopping experience of your customers, but also increases the conversion rate and customer satisfaction, adapting to the most current and secure payment preferences in the Spanish market.

Advantages of digital wallets for your business

Digital wallets offer numerous advantages that make them increasingly popular among consumers, which also end up bringing benefits for retailers.

Greater convenience

One of the main advantages of this payment method is that consumers can forget about carrying cash or cards. With wallets, they can complete their purchases with just a couple of clicks. A smartphone is enough to pay in stores, restaurants and online retailers with a single tap. Consumers value the convenience of not having to manually enter their card details every time they make a purchase, which facilitates the user experience.

High security

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

Improved financial management

Digital wallet applications facilitate a detailed record of spending. Customers can access a complete history of their transactions at any time, allowing them to have a clear view of their spending patterns and make informed decisions about their budget. In addition, many of these applications offer additional tools such as spending categorization, payment alerts and personalized financial analytics, helping users to manage their money more efficiently and achieve their financial goals.

No geographic limitations

Digital wallet users can make payments quickly and securely from anywhere in the world, which is especially useful for travelers who want to avoid carrying large sums of cash or multiple cards. This flexibility not only provides convenience during travel, but also eliminates currency exchange concerns and potential foreign banking restrictions.

Improve your business conversion rate

The ease and speed of payment with digital wallets can significantly contribute to increasing the conversion rate of an ecommerce business. Consumers are more inclined to finalize a purchase when the payment process is simple and fast. By removing barriers in the checkout process, digital wallets help convert more visits into actual sales.

Digital wallets for ecommerce: do you need to integrate any?

It is increasingly evident that users are opting for accessible, secure and simple payment methods. That is why digital wallets have established themselves as one of the favorite payment methods for consumers. Their benefits are significant, offering greater security and convenience to use them without the worry that conventional payment methods can generate. 

If you want to know more about the different payment methods do not hesitate to contact us!