Why now is the best time to adopt digital wallet technology in your business
There’s much to be excited about where technology is taking business. New technologies like mobile digital wallets will propel commerce to new heights.
However, it may be hard to see the a bright future in midst of the challenging retail climate.
According to a report by Ernst & Young, the retail industry’s going through some of its toughest times. Spending is recovering but remains brittle, and inflation is creating even less room for profit as sales volumes have slowed.
Growth in Africa has also dwindled, with 2016 showing the lowest growth achieved over the last 20 years.
But it’s not all doom and gloom. Some retailers have also managed to spread to global markets. There’s also renewed hope for those who’ve taken interest in technology as a solution to offset the drawbacks of today’s economy.
There’s no denying that “technology” is a broad term, especially when referring to the retail industry. In our case, we’re focused on providing a very specific solution for our clients. Our mobile wallet solution helps businesses generate revenue.
Today’s technological ecosystem allows us to offer retailers a little more than just a way for customers to pay for necessities like groceries, clothing and petrol. It helps retailers combat market forces that would otherwise disrupt business.
Here are five reasons why now is the best time to adopt mobile wallet technology in your business.
Competition is getting stronger
Barriers to market entry are at an all-time low, according to KPMGs Top Risks for Retail Companies in South Africa Report. While competition is a part of any sector, retailers are no longer competing alongside other national retailers, internationals have made SA home too.
Focus on winning consumers with better pricing, higher quality products and speed to market makes it tougher for small retailers with less resources to compete. For larger retailers, a ‘better shopping experience’ has become a stronger factor of their competitive advantage.
The need to create new ways of engaging and servicing evolving customers has become a top priority and mobile technology is a low hanging fruit.
Consumers are already using mobile digital wallet technology
In certain cases, new technology misses the mark because it’s just ahead of it’s time. That’s not the case with digital wallet technology. Today, mobile users are primed for mobile wallet technology. This means a captive audience exists for retailers who are ready to be early adopters and capture their share of a growing market.
Consumers have proven that they want to be able to do more than spend time on social media or browse the internet with their phones.
Data costs are now more affordable which makes it easier for more consumers to buy data regularly.
The use of mobile application for payment has become common. For example, two years ago Snapscan partnered with Street Parking Solutions (SPS) to offer Capetonians a more convenient way to pay for parking in the CBD. The experience is everything it promises to be. Using your mobile phone and the Snapscan application to pay for your parking removes the frustration of searching for loose change or trying to find the closest ATM.
Smart Integrations
In the past the idea of integrating new technology required big budgets. Mobile wallet technology is built in a different way. Yes, integrations are still required, however TuYu’s digital wallet integrated to wiGroup’s wiPlatform which already provides an integration layer to the best of breed point of sale (POS) software.
wiGroup’s POS partners
Integrations are not limited to just POS solutions, we’re also able to enhance your existing mobile app or USSD by providing it with mobile wallet functionality.
Growing adoption and consumer data
Large and small retailers with national footprints have already taken to digital wallet technology. To date, there are over 70,000+ till lanes that accept mobile money. But there’s more that retailers are gaining beyond the sale.
Unlike credit or debit card transactions which offer limited access to consumer data, the digital wallet technology we offer allows retailers more information that can be used to drive revenue through marketing offers based on consumer buying habits.
A great example of mobile technology in action is Vida’s digital rewards app which doubles as a mobile wallet. Vida is able to make custom offers to patrons to drive engagement and revenue — something they struggled to do with their legacy gift card programme.
Retailers accepting mobile wallet payments across South Africa
Unique revenue generation
One of the biggest challenges that retailers face is generating steady traffic to their outlets. Using mobile wallet technology places more power and control in the hands of the retailer. We’re able to give businesses a means of creating revenue streams based on consumer spending that can be channeled through a specific retail outlet.
This allows retailers to generate more linear revenue forecasts and drive effective customer engagement through targeted marketing in-store.
Conclusion
Competition in the retail industry is growing and the need to find new ways to engage customers and create better experiences has become a top priority for retailers. Mobile wallet technology can help retailers offer consumers a more convenient and engaging experience through the use of mobile apps and smart integrations. Early adopters of digital wallet technology have the opportunity to capture their share of a growing market of consumers.
Are you a retailer searching for new ways to generate revenue?
TuYu helps businesses leverage mobile wallet technology and offer consumers a safer, more convenient way to transact across South Africa. Using custom closed- and open networks we’re able to help you drive revenue by channeling consumer traffic to spend to specific retailer outlets.
Call us on 021 812 1495/6 to learn about how our technology can help your business.