Cashless, digital transactions are rapidly becoming the norm as we prepare to embark on 2023. With no need to carry endless wads of physical cash or multiple debit or credit cards in their wallet, anyone with access to a smartphone can pay for goods and services using an e-wallet. For some time, e-wallets have been a popular payment method in the iGaming industry. Consumers have found e-wallets useful for the speed of their deposits and withdrawals and for budgeting their iGaming bankrolls. Although some iGaming brands opted to remove e-wallets from eligibility of their bonus promotions for anti-money laundering reasons, others have kept faith in the next-generation payment method. 777Casino is a prime example, with oddschecker stating that PayPal deposits are eligible despite Skrill and Neteller accounts being exempt from their latest sign-up offers.
Uptake of this convenient payment technology is also proliferating in other industries. E-wallets are no longer considered a basic store of value. They have become an entry into all types of payments, breaking down affordability barriers for consumers. In turn, this has also helped to drive revenues for businesses on and offline.
Buy Now, Pay Later functionality
One of the biggest additions to the leading e-wallet apps is the option for consumers to purchase goods and services using “Buy Now, Pay Later” facilities. In fact, the number of Gen Z consumers alone utilizing Buy Now, Pay Later services through e-wallets has risen by 6% in 2019 to almost 36% in 2021, according to the latest payment data from Cornerstone Advisors.
Millennial consumers are also a key target for this payment model, and Cornerstone Advisors say that more than two-fifths (41%) of millennials used this function in 2021. It’s also worth noting the three-fold rise in Gen X consumers using Buy Now, Pay Later services between 2019 and 2021. All of these show this payment flexibility suits the needs of multiple generations of e-wallet users.
E-wallets are intrinsically linked to a consumer’s bank accounts and debit cards in any case. The ability to make transactions with the flexibility to spread the cost over four, six, or even 12 monthly interest-free repayments is a major boon.
Cashback and rewards schemes
Online brands can certainly look to engage with e-wallets and reward e-wallet users with bespoke discounts, rewards, and cashback promotions. In fact, online retailers looking to encourage payments via e-wallets are likely to increase their incentives for mobile and digital wallet transactions.
For example, it won’t be uncommon for consumers to get a cashback percentage on payments made with selected e-wallet providers. Online retailers may also partner with e-wallet platforms to unify rewards programs. This would effectively render physical loyalty cards null and void, with consumers able to store their payment histories within their e-wallet and qualify for rewards with partnered retailers.
Online food delivery services
Cash payments have historically been the norm when it comes to food and takeaway deliveries. However, restaurants and takeaway outlets are increasingly displaying an acceptance of alternative payment methods like e-wallets that ensure fast, frictionless purchases of food to go.
In fact, restaurants have used the advent of digital payments as a way to encourage consumers to engage faster with their food. Not only do they have apps that make it easy to pay, but they also have menus powered by QR codes that ensure on-demand engagement with consumers. For eateries themselves, this generates a swift and efficient turnover of customers, optimizes the likelihood of correct orders, and eliminates the risks of debit or credit card fraud.
Split-bill functionality for meals out with friends
E-wallets are becoming increasingly intuitive when it comes to payment features. Some mobile wallets now make it easy to split a bill and pay your fair share using your preferred payment method. In fact, there are e-wallet apps that now make it possible to ‘tag’ the friends you want to split the bill with. You can set payment amounts per person, and they have the flexibility to pay however they want.
In the US, consumers dining out are increasingly using apps like Venmo, Zelle, and PayPal to split bills for takeaways, meals, groceries, and other everyday transactions. Almost half (47%) of consumers surveyed by Forbes Advisor and OnePoll said e-wallet apps were making it easier for them to share costs and lighten the load, particularly amid rising inflation and the cost-of-living crisis.
Quick, low-cost payments for transportation
One of the fastest-growing use cases of e-wallets has been transportation costs. The advent of e-wallets with contactless payment functionality has made it easier than ever to cover modest transport costs through your app, be it the Tube or train fare or a quick taxi journey across the city. Digital wallets have enabled frictionless, contactless point-of-sale (POS) purchases that make everyone’s lives easier.
The split-bill functionality can also prove a boon for those e-wallet users that need to share the cost of a cab, for example. This functionality is also exciting for travelers overseas, with the ability to pay fares without the need to directly exchange foreign currency.
Long-term savings and budgeting
E-wallets are becoming increasingly intuitive when it comes to a user’s long-term savings goals. Functionality within e-wallets makes it possible for users to set savings goals and ring-fence funds each month for certain savings’ pots’. You can even automate the entire process, with the e-wallet taking funds directly from selected payment sources, e.g., a conventional bank account, and moving funds into separate savings pots.
Automating the process removes the emotion from saving and budgeting, which can be one of the biggest hurdles for consumers to overcome.
Debt repayments
It’s also possible to automate the repayment of debts using an e-wallet account. Digital wallets can act as a payment method that’s one step removed from your bank account or debit card, giving you greater security. Repaying debts is another hurdle for consumers to overcome rather than saving for the future. E-wallets also have automated functionality that allows you to schedule debt repayments on a periodic basis, once again removing the emotion from the transactions and helping you to get your financial health up to scratch.
It’s clear that e-wallets are increasingly becoming a force for good. They’re providing payment flexibility for conventional consumers and increasingly empowering the unbanked population within the economy, changing lives for the better at both ends of the spectrum.
