A Deeper Look at the Future for Digital and Mobile Wallets

Aug 21, 2020

North America has been known for their preference for plastic for some time, with credit cards being the top consumer payment method. Recently, however, the spotlight has begun to shift to mobile-payment methods. Thanks to the COVID-19 pandemic, these trends are beginning to pick up even more speed. As consumers become more open to new methods of payment, more and more brands are paying attention to remain competitive.

According to a recent consumer-behavior survey by Worldpay from FIS, 54 percent of respondents admitted they believed smart phones will soon replace debit and credit cards as the primary method of payment – in just five years’ time. The digital savvy generations – Gen Z and Millennials – were especially adamant about this. Recent research has also discovered that the coronavirus pandemic has sped up the adoption of digital and mobile wallets.

Shift to Digital and Mobile Wallets Picks Up Speed

This shift does not come as a surprise. In fact, it has been expected for some time. In other countries, like China, digital wallets are now the leading form of e-commerce payment and are projected to surpass cash by 2023. North American has simply been lagging behind, but is now expected to catch up quickly in the wake of the global crisis.

Another huge factor accelerating adoption is the current and emerging workforces: Millennials and Gen Z. Both of these generations are incredibly comfortable with technology, often being referred to as “digital natives”. Gen Z, for example, is the first generation to have never known life without social media and instant connectivity. Their acceptance of digital and mobile wallets is driving this trend.

According to the FIS survey, 75% of Gen Z have used a smart phone to make a payment in-store, compared with just 25% of Boomers.

Reasons for the Shift to Digital and Mobile Wallets

Why is this trend picking up so much speed? In addition, to the changes COVID has brought about, the demands of consumers are also evolving. The FIS survey also discovered that 62% of Millennials and Gen Z cited speed as the primary reason for using digital wallets. The primary concern for Boomers, on the other hand, is safety.

In order to stay competitive and relevant, brands need to be prepared. Not just for the challenges COVID has thrown at the business world, but also for changing customer preferences. The best place to start is to develop a clear understanding of what consumers want to see now and in the future and what kind of experience they expect. At the same time, businesses must ensure a quick, secure and convenient checkout experience.

Secure Reputable Payment Processing

To open a safe and secure merchant account, it is important to partner with a reputable payment processing company like emerchantbroker.com. Voted the #1 high risk payment processor in the U.S., EMB boasts an A+ rating with the Better Business Bureau (BBB). With the team at EMB, you can enjoy the best chargeback protection and prevention programs in the industry. In choosing EMB, you not only get a highly reliable and secure eCommerce merchant account for your business, but you also secure assistance in fighting fraud and mitigating chargeback levels related to your business.

Let us help you get a high risk merchant account today!

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

Live Chat