A Retail Wallet is a payment tool designed to simplify the shopping process for a customer, save time when placing an order, eliminate problems with plastic payment cards and loyalty cards, and help shoppers plan their expenses accurately. What benefits do retailers get by launching a retail wallet?
1. Retail Wallet is an affordable marketing tool
Issuing electronic discount cards to customers with information about bonuses, discounts, purchase history cuts the respective IT and marketing costs: the retailer does not issue physical cards, customer cannot lose the card and always carry it in his/her smartphone.
Sending buyers information about promotions and events in the form of push notifications is much cheaper than SMS messages and more efficient than traditional email notifications.
2. Retail Wallet reduces transactional fees
Retailers are charged a “transaction fee” when accepting the payment by debit or credit card. By introducing a store-branded, closed-loop retail wallet the retailer will not need to pay any kind of IPS fees, therefore the cost of ‘on-us’ transaction is much lower. The cost is lower by reducing the number of transactions via international payment schemas (VISA, MasterCard, etc.). Using smartphones instead of special card terminals and physical cards is cheaper too.
3. Retail Wallet increases customer loyalty
By leveraging information from a customer’s previous purchases, the seller can offer helpful tips, targeted shopping lists, personalized bonuses, and discounts on items that the customer purchases regularly. Communication with the buyer through the mobile application will become for the seller a valuable asset and will help build stronger relationships with existing customers.
Using the mobile POS for accepting the wallets the retailer gives its customers the ability to pay at any place of the store. This also increases customer loyalty by improving efficiency and customer satisfaction, while simultaneously reducing costs.
4. Data Security
Digital wallets can improve the security of shopper data through a variety of techniques to enhance security and mitigate risk, reducing the likelihood and impact of breaches. Veengu white-label retail wallet solution uses both industry-standard and modern innovative security solutions to guarantee a high level of data security.
5. Sustainability
Sellers have to spend a huge amount on plastic stores and gift cards, cardboard coupons, paper, receipts, or printing the ads. It has a huge monetary and environmental cost. According to the Huffington Post study «Going Paperless: The Hidden Cost of a Receipt», only the USA use over 250 million gallons of oil, 10 million trees, and 1 billion gallons of water are required just to service the annual demand for paper receipts. Also, in the UK, over 11 billion receipts are printed annually, each costing just under a cent. Digital wallets offer a clear alternative to this activity – digital receipts, tailored push notifications, and in-app offers can be stored in-app.
Modern digital wallets can deliver an enhanced experience, reduced operational costs, increased customer loyalty, and improved payment security. Veengu is a software platform for a quick launch of digital financial services like a retail wallet. We provide white-label retail wallet solution in a software-as-a-service and on-premise modes. For more information about Veengu Retail Wallet, please contact us.
