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Apr
22

Turn your users into loyal customers: How e-wallet providers can attract a larger customer base

Traditional modes of transaction have been slowly replaced by digital modes of payments. Electronic wallets or e-wallets have become a popular mode of transaction, especially for the tech-savvy generation. In many transactions, e-wallets are absolutely trumping the traditional leather wallets due to their ease of use, security, convenience, and privacy along with a host of other features. Indian economy saw an upsurge in usage of e-wallets like Paytm, Oxigen Cash, Google Pay, PhonePe etc when demonetization was announced in November 2016. With less access to liquid cash, people switched to online banking and digital payment systems.

Especially now, in the current climate of the Covid-19 pandemic,  cashless transactions have gained more acceptability. Rightly so, as we are practising social distancing from everyone, paying digitally is certainly an attractive option over handling currency. Needless to say, as e-commerce/online shopping (the big brother of e-wallets) made its way into our lives becoming more inherent than we would like to admit, it brought its little brother e-wallet along with it. So much that if I bet that one look at your phone and you’ll find at least one of those e-wallets resting comfortably in your app space, it’s a bet I’m going to win. No doubt!

The world is experiencing major changes in its economy even as you read this article, this has led a lot of organizations (some voluntarily, some forcibly) to relook their business strategies. All sectors are undergoing a complete transformation; at least on the digital fronts. This unpredicted digital disruption is a fairy godmother to organizations offering virtual services. Companies like ‘Zoom’ have adapted quickly to these quarantine times, offering the need of the hour and easy to use solutions. So, e-wallet providers take notes, because we have some serious tips to help you.

A study by Sikdar, Kumar & Alam (2019) on Adoption of E Wallets by subscribers investigates the factors generating usage intentions for electronic wallet applications and the extent to which such intentions translate to final usage behaviour. The findings suggest that factors such as performance expectancy, social influence, ease of use, hedonistic motivation factors like discounts and cashback, and price value lead subscribers to adopt e-wallets which in turn influences their usage behaviour. The study outlines how the e-wallet service providers and marketers can use the findings to build a strong and loyal customer base for their e-wallet by exploiting the underlying factors. 

1.High Productivity

The wallet should serve a diverse set of tasks such as utility bill payment, ecommerce payment gateway, payment to retail outlet etc to boost the user productivity. Faster processing of payments along with a wide network of payment coverage will increase customers’ chances of multi-tasking and become productive on more important tasks. The more services covered by the e-wallet, more likely it is to attract more subscribers.

2.Enhance user awareness

E-wallets are a relatively new mode of the transaction despite having been around for the last one decade. While the penetration of e-wallets has been increasing, most of the customers still depend on the old fashioned ways of banking. E-wallet service providers should conduct user-friendly camps, have assistance kiosks at hotspots including office areas, metro stations, etc to enhance user awareness and utility of this facility for the users to attract more users especially among the less technology-friendly groups.

3.Provide ease of access

Despite technological advancement, people prefer to go to banks to use banking services, especially in the older generation. With online banking and e-wallets banking services have become easier and more accessible. There are no long queues to wait for your turn.  The younger generation is more disposed to use electronic transactions via e-wallets. Easy user interface will help even the non-tech savvy customers use the facility easily.

4.Habit formation

In order to create returning subscribers, e-wallets service providers should offer services which motivate the customers to return to use the application. Offers such as discounts and cashback encourage users to use the app more often. A new phenomenon of a tie-up with gaming in e-wallet apps is emerging as another factor for usage intention.  E-Wallet service providers should explore more ways to attract customers by rewarding them for performing various activities which in turn will also act as a branding and promotion exercise.