How The Digital Wallet is Making Waves in Customer Experience

One of the more recent developments in mobile technology – digital wallets – is gaining momentum. Analysts for enterprises including Visa, Mastercard, Google and Apple, are starting to take notice and report on its trends.

According to a recent press release, the recent launch of the Wocket (TM), a smart wallet, in New York City was a success and generated consumer interest.

The Digital Wallet Appeases Security Fears with Cyber-Crime on the Rise

The Wocket is a mobile device that offers secure and instant access to all your financial data wherever you are. Particularly in an era when cyber-crime is on the rise, and all individuals and companies store important and sensitive information online, financial security is paramount. The safety and ease with which the Wocket can be used will help encourage customer demand, the press release notes.

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Having Clearly Identified a Consumer Need, Competition is Rising Rapidly

NXT-ID, the company that manufactures the Wocket, is currently retailing it for $149. Because of the clear advance in customer experience offered by a smart wallet, other companies are introducing competition into the marketplace by selling similar products. Credit card retailers Mastercard and Visa now feature digital wallets which they claim will improve online customer experience. Meanwhile, Google Play is now including PayPal within the suite of options available in Google Wallet.

More Than Just a Wallet, It’s about Creating Extraordinary Customer Experiences

The end goal for all these companies is not simply to further automate digital transactions but to simplify customer experience.

Recent research indicates that mobile transactions across the globe have reached about $600 billion per year. This means that whichever company is able to overcome the intrinsic hurdles to success in the smart wallet industry, such as security concerns and fragmentation, will likely stand to reap billions of dollars in profits if their device becomes the standard option for consumers.

Despite Heavy Obstacles, Sales Projections are HIGH

One challenge is to get businesses on board, since if major retailers don’t accept them, neither will their customers. Another problem is that many apps used for smart wallets are currently non-transferable and are exclusive to particular banks or services.

In any case, according to a projection by the IDC, it’s estimated that by 2015, one billion smartphones will have hit the market. Clearly, mobile data is the way of the future. The next advance in customer experience will be dictated by the first company that manages to harness the benefits of smart wallets while overcoming the negative aspects associated with them.

Customers Are Happy to Opt for Increased Convenience and Speed

With regard to CX (customer experience), the takeaway is clear. Customers will be happy to opt for increased convenience and speed, but they also value security and universality in their products. Until smart wallets are widely considered to be 100% secure, and are accepted everywhere that major credit cards are, growth may be incremental. For this reason we may still be five years away from widespread use of smart wallets.

An opportunity exists here for companies and businesses that can pinpoint and improve the weaknesses that still remain in the smart wallet industry. As usual, the key is to approach the situation with the customer experience in mind in order to determine what next steps can be made to continue to improve on a process that is already well on its way to becoming the major purchasing technology of the future.

There is a lot that we in the Customer Experience industry can learn from this innovation. I really enjoyed reading this press release, and I highly recommend it, for further reading.

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Matthew Thomas
Matthew is the Lead Author & Editor of CXperience Blog. Matthew established the CXperience blog to create a source for news and discussion about some of the issues, challenges, news, and ideas relating to Customer Experience.
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