Effects on the Growth of Digital Wallets for Businesses.


Effects on the Growth of Digital Wallets for Businesses.

Digital wallets adoption is growing in China, according to a  new report from Forrester  Research, Inc. The growth is attributed to the  burgeoning eCommerce market, explosive growth of smartphone penetration,  and mobile payment technologies in recent years that have made digital  wallets a convenient payment option. Aggressive promotional efforts by  eCommerce giants, Alibaba and Tencent, financial institutions and mobile  operators also play a key role in encouraging the use of digital wallets  via their online platforms.

Senior Analyst Vanessa Zeng writes in the report that, with the strong  growth potential of digital wallets in China, businesses should evaluate  consumers’ needs, marketplace options, and formulate a digital wallet  strategy to deliver better business outcomes.

Key takeaways from the report include:

  • Understand China’s unique mobile payment system is unique In  general, the mobile payment services ecosystem is extensive and market  players include standards bodies, mobile devices, manufacturers,  banks, mobile network operators, mobile payment platforms, merchants  and consumers. In China, the country’s Central Bank policies determine  the market access of third-party payments. By unifying mobile payment  standards, the Central Bank improves compatibility of digital wallets  offered by the different players, thus lowering the cost of adoption.
  • Select the mobile wallet that’s right for you There are  three types of digital wallets that exist in the marketplace for  businesses to choose from: remote-only digital wallets, proximity-only  digital wallets, and omni-channel digital wallets. Financial  institutions, mobile operators, and third-party online and mobile  payment platforms offer different digital wallet options, each  possessing unique capabilities and positioning.
  • Keep Consumers and ROI in mind when selecting a Digital Wallet Merchants  who recognize consumers’ mobile integrated lifestyle have primarily  adopted digital wallet solutions to improve the customer experience  and simplify the payment process. To adopt the right solution,  merchant organizations must understand the factors that influence  consumers’ usage of digital wallets.

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About Author

Kevin C is passionate for tech world wide. He was apart of Qbox media and currently is apart of a UX firm based in Hong Kong.

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