The new year has begun with new beginnings and challenges in terms of technology and innovation. The increase in the number of smartphone users, greater internet penetration, and the varied preferences of consumers has led to a major disruption in fintech sectors. ‘Digital disruption’ has taken the ecosystem by storm. The arrival of digital payments and niche banks have led the emerging consumer to choose the right digital wallet for themselves.
According to Gartner, the global market for mobile payments will be worth $720 billion in transactions by 2017 — up from about $235 billion in 2014.
Amidst all of this, the digital wallet is one mode of payment process which is being used like hot cakes and everyone wants a piece of this cake. Jumping on this bandwagon are E-commerce companies. They are proactive in providing various modes of payment methods to the enhance the consumer experience. Today we bring you the important things that E-commerce companies need to keep in mind while integrating the right digital wallet into their E-commerce mobile apps.
Choose The Right Digital Wallet To Integrate
One of the biggest challenges is choosing the right digital wallet for your E-commerce app. The market is dominated by names like Apple Pay, Google Wallet, Paypal, using digital currencies like Bitcoin, to the newly adopted payment wallet services in India like Paytm, MobiKwik, Oxigen etc. There are various ways in which you decide which wallet suits your requirement.
Transaction Fees: Although a wallet is free for consumers, vendors charge merchants for wallets. Some wallet vendors make arrangements for merchants to pay them a small percentage of every successful purchase directed through their wallets. In other cases, digital wallet vendors process the transactions between cardholders and participating merchants and charge merchants a flat fee. It is important to remember that choosing a payment solution provider that charges you a right fee is a key decision as it affects your business revenue growth.
Convenience: Choose a wallet that allows you to easily integrate into your current checkout without disrupting the payment processing. Apart from this, the digital wallet should also provide a frictionless experience to the consumer while saving all the payments methods, offers, coupons, loyalty memberships, gift cards, VIP statuses, shopping lists, preferences, transaction histories, etc.
The Security Aspect of The Digital Wallet
Users link their bank accounts, debit cards and credit cards directly to one online account in the wallet. This makes the security element, one of the most vital things to look out for a digital wallet. The consumer data needs to be highly encrypted and stored on secure servers. Proper compliance checks need to be adhered by the digital wallet providers. All merchants that accept payments cards must adhere to the Payment Card Industry Security Standards Council’s (PCI SSC) data security standards, the most important of which is the PCI Data Security Standard (PCI DSS). The PCI SSC is an open forum that develops and manages the PCI DSS and related payment card data security standards. Merchants, processors, card issuers and technology vendors are required to comply with those standards.
The PCI SSC guidelines have three objectives covering the main risks associated with m-payment transactions:
• Prevent account data from being intercepted when entered into a mobile device;
• prevent account data from compromise while being processed or stored within the mobile device; and
• prevent account data from interception while being transmitted from the mobile device.
In cyber security, a sandbox is a security mechanism for separating running programs. It is often used to execute untested code, or untrusted programs from unverified third-parties, suppliers, untrusted users and untrusted websites. A sandbox typically provides a tightly-controlled set of resources for guest programs to run in, such as scratch space on disk and memory. Network access, the ability to inspect the host system or read from input devices are usually disallowed or heavily restricted.
In the sense of providing a highly controlled environment, sandboxes may be seen as a specific example of virtualization. Sandboxing is frequently used to test unverified programs that may contain a virus or other malicious code, without allowing the software to harm the host device.
There are much more things that e-commerce companies should watch out for before finalizing on the digital wallet for their apps. Out of those things, these three top the list. As the digital disruption continues to hit businesses and consumers, it’s imperative that security should be given utmost importance.