Why Should a Business Use an E-Wallet Service?

The evolving payment industry provides new opportunities for organizations to use an e-wallet for business.

Amid the pandemic-fueled shift from cash to contactless payment methods, digital wallet solutions are gaining ground against traditional payment methods, such as credit and debit cards.

With a projected global market size of $7,580 billion by 2027 and a Compound Annual Growth Rate (CAGR) of 28.2% between 2020 and 2027, the popularity of e-wallet services has surged from 2019's 14% to 22% in 2020, scoring the third place among the most preferred payment methods in Southeast Asia.

Due to the increasing consumer demand and the benefits they offer, e-wallets provide excellent opportunities for businesses to grow their customer base.

What Is an E-Wallet?

Simply put, an e-wallet is the digital version of an individual's wallet that stores the financial assets and information (e.g., cash, credit and debit cards) necessary to settle their everyday payments.

However, unlike a physical wallet that can be easily lost or stolen, digital wallets are secure financial services where the users' funds are protected via multiple security and anti-fraud features.

As a one-stop solution, e-wallet services allow users to manage their finances within a single platform.

To get started, customers have to deposit funds to their digital wallet accounts using a supported payment method (such as cards, bank transfers, cryptocurrencies).

After funding their accounts, consumers can use their balance to transfer money to other users and pay for products and services at merchants.

Similarly to deposits, users can utilize multiple payment methods to withdraw their account balances.

On top of the deposit methods, some e-wallet services (including STICPAY) allow their customers to use the solution's native prepaid card to spend or withdraw their money cost-efficiently and conveniently.

What Benefits Do E-Wallets Provide for Businesses?

From a business perspective, a digital wallet represents a new way to accept transactions from customers.

In addition to the above mentioned benefits, e-wallets provide a multitude of benefits to merchants, including:

• User-friendly checkout process: Making the checkout process as smooth and straightforward as possible is crucial for businesses. According to a 2020 Statista report, shopping carts were abandoned in 88% of online orders, with the requirement to re-enter credit card information being among the top reasons (30%) for leaving the store without a purchase. As all their payment details are saved securely within the service, e-wallet solutions simplify the checkout process, effectively reducing the cart abandonment rate for businesses.
• Increased security: Unlike credit cards that can be easily lost or stolen, e-wallet services feature enhanced (often bank-grade) security features. In addition to strict KYC and AML monitoring, digital wallet solutions encrypt transactions and utilize PINs, biometrics, and two-factor authentication (2FA) to ensure their users' safety.
• Competitive fees: E-wallet services use their own internal networks to process transactions without any intermediaries. As a result, the solutions feature competitive costs for internal client-to-client transfers and merchant payment gateway solutions.
• Convenience: Digital wallets save all the details of users, including their personal and financial records. For that reason, customers only have to click one button or scan a QR code via the e-wallet solution's mobile app to easily auto-fill their orders at merchants.
• Speedy transactions: As transactions take place in the service provider's internal network, both sending funds to other users and paying for products at merchants are processed (near-)instantly via e-wallet solutions.
• International growth potential: With e-wallet solutions, merchants have access to a larger base of international users. For that reason, businesses can utilize digital wallet services for growth and expansion to further countries and regions.
• Cryptocurrency payments: Most e-wallet services offer digital asset transactions for their customers with the option for businesses to integrate a crypto payment gateway solution into their platforms. As they operate via decentralized blockchain networks, cryptocurrency payments are executed without intermediaries, allowing users to transfer funds and pay for products in a fast and inexpensive way.

What Use-Cases and Opportunities Do E-Wallet Services Offer for Businesses?

E-wallets offer new use-cases and opportunities for businesses to capitalize on. Below, you can find a list of the most exciting ones:

• Enhanced loyalty programs: It's hard for the average consumer to keep track of all the different rewards programs merchants offer. To limit confusion and engage users more efficiently, businesses can integrate their loyalty programs directly into e-wallet solutions under a single platform.
• In-store cardless payments: E-wallet solutions often feature their own mobile applications, allowing consumers to use their smartphones to pay for products via NFC technology QR code scans. For that reason, businesses with physical locations can accept in-store payments from their customers securely and conveniently.
• Online payment gateway: In addition to handling physical payments, merchants can also use e-wallet solutions to set up online payment gateway services. Businesses can integrate the digital wallet's gateway solution directly into their platforms to offer multiple payment methods and accept transactions from their customers at cost-efficient fees.
• A chance to target younger audiences: Millennials have been in the center of discussion for a very long time in the digital payment industry, and for a valid reason. While 32% envisions a cashless society, millennials are avid e-wallet users, representing nearly 40% of mobile wallet customers. For that reason, by adopting digital wallet solutions, businesses can reach younger audiences with their products and services.
• High-risk merchant solutions: Some industries involve higher risks, making it hard for businesses within such sectors to set up merchant solutions at payment providers. To solve this issue, digital wallet solutions like STICPAY offer payment gateway services to licensed companies in high-risk industries that comply with the appropriate laws and regulations.

STICPAY: an Award-Winning E-Wallet Service for Businesses

As part of the cashless revolution, e-wallets offer numerous benefits and use-cases for businesses. And the award-winning digital wallet service STICPAY is an excellent choice.

With global coverage in over 190 nations, STICPAY serves an international user base with a strong presence in Asia. In addition to supporting 29 national currencies and 19 languages, STICPAY users can choose from numerous payment methods, including:

• Visa
• MasterCard
• UnionPay China
• Local and international bank wire
• Cryptocurrency (Bitcoin, Ethereum, Litecoin)

In addition to international transfers, STICPAY has introduced its local bank wire service in seven Asian nations, including Singapore, Indonesia, Malaysia, China, South Korea, Japan, and the Philippines, to enable fast and inexpensive user deposits and withdrawals. 

Due to the increased demand, STICPAY will expand its local bank wire solution to further countries and regions shortly.

STICPAY features cost-efficient charges for member-to-member transfers (1%) and fiat payment processing for merchants (2.5% + $0.3). In addition to accepting transactions in national currencies, businesses can also set up a cryptocurrency payment gateway with STICPAY with a competitive 1.8% fee per transfer.

Merchants and customers can access STICPAY conveniently via a web platform and the e-wallet service's recently redesigned mobile apps for iOS and Android.

In addition to convenience, STICPAY takes the safety of its users seriously.

For that reason, the e-wallet solution features advanced security and anti-fraud measures, such as the storage of client funds in segregated accounts with uninterrupted access. Furthermore, STICPAY continuously monitors both end-users and merchants and uses strict KYC and AML requirements to protect its customers.

Use an E-Wallet for Business With STICPAY

As a business, it only takes a few minutes to get started with STICPAY.

First, head to STICPAY's website to open a merchant account. After completing the mandatory KYC and AML checks, the STICPAY customer success team will respond to your request shortly.

Upon successful account verification, the e-wallet service will issue each business a unique merchant ID.

You can use your merchant ID to open multi-currency accounts at STICPAY and set up a payment gateway via an Open API connection and its corresponding documentation.

Ready to join the digital revolution?

Register a merchant account at STICPAY now!

If you have any questions, feel free to reach out to STICPAY's customer support team to have your queries answered 24 hours a day.

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