In China, Single’s Day, an entertaining festival, was celebrated on 11th November in 2016. Alibaba saw record sales on this day with $17.8 billion in revenue. This is more sales than the Black Friday and Cyber Monday combined sales of 2016. Looking at the success of Singles’ Day, it’s is not surprising that the company’s mobile wallet Alipay is the most used online payment method in the world, getting 44 percent of world’s e-commerce market share. While Apple Pay and Google Wallet are gaining momentum, Alipay’s has had a head start and can pose a major threat to other mobile wallet companies. This app is not limited to people in China as it’s already in partnerships with vendors of PoS in the U.S. and Europe and expanding. So, should other companies too integrate mobile wallets with PoS vendors as well?
What strategic steps can be taken to gain an increasing share of the global e-commerce market by other companies? Here is what’s being suggested.
Make it a lifestyle choice: Integrate mobile wallets with pos and more!
While many consumers in the west think of mobile wallets as another way to buy physical goods, for other types of payments, they tend to use separate, purpose-built apps outside the mobile wallet. What Alipay did, it has taken mobile wallets far beyond only purchasing goods or services and turned it into a lifestyle choice by embedding itself into daily activities and interactions which others can follow.
For instance, Alipay at Money2020 Europe talks stated that the mobile wallet is propelling the Alipay Local Services Platform in more than 12 nations and areas to permit Chinese tourists to “travel like local people” while abroad. The Alipay Local Services Platform is intended to help more than 100 million Chinese travellers everywhere throughout the world to effortlessly find and utilise neighbourhood services and benefits in the Alipay application, for example, shopping, restaurants, booking a taxi, ticket booking, etc. All such exercises can be done inside the Alipay application, as opposed to utilising a few separate apps for the eatery, tourism and deals. This has guaranteed Alipay is a piece of customers’ day by day ways of life notwithstanding when they’re in a hurry.
Deliver a ubiquitous experience
Now the consumers are looking forward to omnichannel experiences with services such as in-browser payments or within-app money transfers. This is what mobile wallet payment apps should try to provide all consumers. The future is likely to see a major change in technology companies, including biggies of Facebook, Apple and Google to more innovatively include payment functionalities in the user’s lifestyles. The latest event is the launch of in-app money transfer feature on Facebook and is among first steps in terms of providing a ubiquitous experience.
Notwithstanding Facebook’s latest capabilities, mobile wallets from Apple and Google are getting stretched out to internet browsers, which means any online dealer can support these advancements. It additionally implies customers can utilise the same app for both on the web and in-store payments, making the recommendation substantially more appealing for a larger group of consumers who favour online shopping. If one of their favoured payment apps is offered by most of the shops – whether on the web or in-store – they will probably develop loyalty with that brand and use it the most.
In addition to Facebook’s money transfer capabilities, mobile wallets from Apple and Google are being extended to in-web browsers, meaning any online merchant can support these technologies. It also means shoppers can use a single payment method both online and in-store, making the proposition much more attractive for the rising proportion of people who prefer mobile commerce. Consumers want the option to pay how they want, when they want, wherever they want. If consumers’ preferred mobile wallets are offered wherever they shop – whether online or in-store – they are more likely to build engagement and loyalty with that brand.
Give priority to security
Security is becoming a grave concern for consumers. Based on the 2015 Online Payment Journey data by Worldpay, 51 percent of online consumers recognise a website as a secure place to shop if they find a payment authentication logo on their website. Apart from this, consumers are sceptical if re-directed to another site. 28 percent of shoppers would abandon their buying process because of security concerns when redirected to another website. Mobile wallet apps, therefore, need to provide clear authentication logos and also on any redirected page for payment. Making security a top priority is crucial for getting consumers and transactions.
Apart from showing authentication and secured logos, mobile wallets can also increase reputation by joining security groups and initiatives such as the W3C Web Payments Working Group or getting all necessary payment certifications which will increase consumer loyalty. The W3C works to make consistent and secured the online payment process regardless of the payment method used. It has the ability to also harmonise mobile wallet payments market.
Because of the latest partnership of Alipay with western PoS (Point of Sale) vendors, they are going to see Alipay up in store and by means of internet shopping within the next few years. While numerous other little strides will be required for organisations to equal Alipay’s position, these three measures can have a critical effect in picking up some market share of the overall industry and an also get an upper hand.
It is likely that mobile wallet payment applications will read about what Alipay’s been doing and come up with their plan to match consumer expectations. On the other hand point of sale, companies are extending to integrate as many capabilities in their software and would be glad to have mobile wallets integrated with point of sale systems. Yet some popular PoS vendors might develop their own mobile wallet payment system taking advantage of high market share. But it won’t be easy to focus on additional avenues either.