The quick adoption of digital technologies has allowed us to perform transactions online that are usually done in cash or at physical points of sale pushing innovation within the payment ecosystem. These new technologies include digital wallets (sometimes known as “superapps”), which have grown exponentially during the last year, according to the report published by Colombia Fintech . Digital wallets provide multiple features that allow users to perform transactions with a single click directly from their cellphones, transforming traditional payment methods into a digital alternative. According to the report, there was a 195% increase in the use of digital wallets in Colombia last year, due to the ease of use these apps offer when it comes to financial transactions. The report also reported a 122% growth in the number of transactions and a 195% growth in transaction volume during the same period.
Since these digital wallets were offer a new business model, which offers an advantage over other payment methods. Many businesses have already switched and adopted this solution as part of their service offering to increase the profitability of their operation. The solution offers identity verification, data storage, confidentiality, convenience, and efficiency together with a high level of security making it ideal for the financial service industry.
Notable digital wallet features:
This solution is highly attractive for both entities and end users that seek complementary services and added value offers beyond just the transaction, thus improving the benefits and reducing costs, such as those incurred in printing, distribution, and delivery certification for cards, and processes related to assigning and activating passwords.
According to the Global Payment report , some data already shows that this payment method will become an essential part of the transactional ecosystem due to its popularity and functionality
To capitalize on wallet-based business models, organizations must find a partner with the expertise and technological muscle to implement new experiences and payment method. As a partner, Evertec focuses on supporting this digital transformation by offering innovative tools such as the digital wallet with a white-label app that is customizable in functionality and appearance. If the organization already has its own wallet, Evertec can offer API integration services to integrate complementary functionalities to the existing solution.
Without a doubt, the use of digital wallets will increase profitability and the capabilities for financial institutions by providing the ability to incorporate payment methods that simplify users’ lives and meet business needs.
By: Alexander Bravo
Product Specialist, Evertec