EWallets: The Mobile Payment Type You May Be Missing Out On

— March 5, 2018

If your business sells anything online, you’re probably familiar with eWallets (aka mobile wallets) such as Apple Pay, Visa Checkout, and Masterpass. But you might be unsure about whether you should offer them as a payment method. On one hand, some sources suggest that eWallets “aren’t knocking consumers’ socks off,” while others say eWallets have already surpassed debit cards, and are set to become 45.9% of the global eCommerce market by 2021. So, is it in your company’s best interests to offer eWallets, or not?


EWallet Payments: Three Business Benefits


As a payment gateway, the eWallet adoption rate of our own customers is growing fast. At BlueSnap, we talk to eCommerce merchants daily and, regardless of the cited statistics on consumer adoption, those that offer eWallets have improved their customer experience and seen positive business results, including:



  • Improved conversions. This is happening for two reasons:

    • The easier it is for people to buy something, the more likely they are to do it. Amazon’s Jeff Bezos tested and proved this theory back in the 1990s, when his patented “1-click” buying technology removed the need for customers to type in billing, payment, and shipment information. By some estimates, this simplification of the buying process made Amazon billions. And it’s only logical: With mobile shopping on the rise, more customers than ever are looking for checkout workarounds that don’t require a credit card at the ready; they also want to avoid typing in payment information on a small screen. EWallets of all kinds simplify the process, solving these issues associated with mobile purchases and improving conversions. Some, like Apple Pay and Android Pay, even boil it down to a single click and identity confirmation.
    • EWallets remove common payment challenges from the equation. Payment conversions go up because, with eWallets, there’s no mistyping of credit card numbers, and no expired or invalid cards to deal with (the wallet is managing that). Fewer declined payments means fewer times you’ll need to ask shoppers to enter another credit card number. As a result, you’re likely to see an increase in the number of successful transactions completed.


  • EWallets are bringing back more customers, more often. Businesses we’ve talked with (particularly those with a high tendency for repeat customers) who are offering eWallets as a payment method have experienced an increase in order velocity. Many consumers are attracted to the consumer-centric nature of easy mobile payments, which makes the brand more attractive as well. Chances are good that, if they’re happy with your seamless payment experience, they’ll return more frequently.


  • EWallet payments decrease fraud. Security is part of the unique appeal of eWallets. Not every wallet works the same way, but best-in-class from a security standpoint are the ones that use tokenization, like Apple Pay and Android Pay (now part of a unified service called Google Pay). When shoppers add a card to one of these eWallets, the information is encrypted immediately and stored on a Secure Element inside the device to prevent unauthorized access. Plus, these eWallets assign a unique token to every purchase that can only be used to pay the merchant it was intended for. So even if a hacker got their hands on the credit card number, they couldn’t use it to make a payment anywhere else. This additional level of eWallet gatekeeping reduces your overall instances of fraud; the data privacy aspect also appeals to customers.

Recommendations For EWallet Adoption


Most leading-edge eCommerce companies—those concerned with providing a superior customer experience throughout the entire buying experience—have carried that philosophy over to their checkout process and implemented at least one mobile wallet. If you’re considering implementing it in your own business, consider these two tips from those who have gone before you:



  1. Make eWallets the sole payment option for mobile purchases. As some of the statistics I referred to earlier show, the biggest challenge for eWallet adoption is overcoming customers’ old habits. So if you’re testing out an eWallet by putting it alongside the traditional credit card option, shoppers who are unfamiliar with eWallets will most likely choose to input the card number. Contrary to what you might think, we’ve seen companies have great success by making eWallets the sole payment option for mobile purchases. It forces customers to break the habit, steering them to one or more mobile wallet options. Once they try it, they realize how easy it is to use. Some eCommerce businesses have tried this strategy and seen their conversion rates and order velocity increase as a result.


  1. Choose the eWallets that will be most appealing to your customers. Before you implement any eWallet (or every option available, which is not recommended), it’s worth looking at your transactions and seeing what types of credit cards your customers are already using. Apple Pay and/or Android Pay are a must if you have a mobile app or a mobile optimized site, but if a significant number of your transactions are completed using Visa, it makes sense to try Visa Checkout as well. Generally, you should avoid putting six or seven wallets on your checkout page—in part because there’s not a ton of space on mobile to begin with, but also because it might be confusing to your customers. Take the time to figure out what brands your customers will most likely recognize, then filter down the options. And keep in mind that it doesn’t cost your business anything extra to offer eWallets; the cost is the same to you as a traditional credit card.

EWallets are key to optimizing mobile eCommerce, but there are other strategies you can use to reach and retain mobile shoppers as well. Find out more about checkout design, mobile apps, coupons, and more here.

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