With the rapid growth of eCommerce and the increasing number of online transactions, security concerns have become more prevalent than ever before. Payment security has been a major issue in the online business environment, with many of them falling prey to fraud and scams. Digital wallets have emerged as a potential solution to the payment security problem in BigCommerce stores.
This blog will explore how digital wallets can improve payment security in BigCommerce stores, providing famous examples from giant companies, and statistics to support the benefits of using them for payment security.
What are Digital Wallets and How Does It Work?
Digital wallets are digital applications that store a user’s payment information, including credit/debit card, bank account, and other financial information in a secure digital form. They offer a safe and convenient method of making online payments, reducing the need to manually enter payment information for each transaction.
Digital wallets use various security measures such as encryption and biometric authentication to protect user information. To elaborate, encryption is a process that converts sensitive data into a coded format that can only be accessed by authorized users with the proper decryption key. This ensures that even if a digital wallet is hacked, the information stored within it will be unreadable and useless to anyone who doesn’t have the proper decryption key. Similarly, biometric authentication uses unique physical characteristics like fingerprints, facial recognition, or even iris scans to verify the identity of the user accessing the digital wallet. This provides an extra layer of security beyond traditional passwords or PINs, as biometric data is much harder to fake or duplicate.
Overall, digital wallets have become increasingly popular due to their convenience and security measures. By using encryption and biometric authentication, digital wallets help protect users’ financial information and give them peace of mind when making electronic transactions.
Why Are Digital Wallets Important For BigCommerce Stores?
BigCommerce stores offer multiple digital wallets for their users like Apple Pay, Google Pay, and more, which provide them with a convenient and speedy option to make payments without manually taking the effort. Moreover, by offering several digital wallets, BigCommerce merchants can also appeal to a wider range of customers who may prefer one digital wallet over another while making payments for their online purchases.
Benefits of Digital Wallets in BigCommerce Stores
Apart from just improving payment security, digital wallets also have other benefits both for merchants as well as customers. Let’s have a look at a few of them to learn more in detail:
1. Secure Payment Processing
One of the biggest benefits of digital wallets is that they offer a more secure payment processing experience. With digital wallets, customers can securely store their payment information, such as credit card details or bank account numbers, in one place. This means that they don’t have to enter their payment information every time they make a purchase, reducing the risk of their information being intercepted by fraudsters.
Digital wallets also use advanced security measures, such as encryption and tokenization, to protect customer information. Encryption, as also explained before, converts customer information into code, which makes it harder for hackers to access. Tokenization replaces sensitive data with a unique identifier, reducing the risk of fraudsters gaining access to customer data. According to a survey, 44% of consumers who use digital wallets say that security is a key factor in their choice of payment method. So, if BigCommerce stores use digital wallets in their checkout processes, they will provide wider payment security and value to their customers.
2. Fast and Convenient Checkout Experience
One of the fastest and most convenient checkout processes is done with the help of digital wallets. Customers can make use of this payment option to store their payment information and shipping address all in one place so that their purchases are made in a quicker and easier manner.
Similarly, following this process also lessens the amount of time customers spend filling out forms during their checkout process, which can help to reduce cart abandonment rates too. According to a survey by Baymard Institute, the average cart abandonment rate is 68.8%. This means that almost 69% of customers who add items to their cart do not complete their purchases.
So, by offering a more convenient and streamlined checkout experience in your BigCommerce store with digital wallets, it can help reduce cart abandonment rates and increase the percentage of customer purchases as well. So, if you’re running a BigCommerce store and want to redesign your website in order to add a custom checkout process to avoid abandoned carts, you can hire BigCommerce web designers from CodeClouds, which provides everything from Web, eCommerce, CRM, CMS, and Design solutions. By hiring them, you can add value to your business, while the industry experts take care of your website’s payment security to give your customers a convenient checkout experience for every purchase that they make.
3. Improved fraud detection
As more and more customers are turning towards digital wallets, businesses are now prioritizing more on fraud prevention and detection process, especially in their stores. On the other hand, while BigCommerce stores are scaling up their use of digital wallets, there has been a corresponding rise in fraudulent activities as well. This has in turn affected customers and merchants in the long run too.
Thus, to combat this issue, many BigCommerce stores have started inculcating fraud detection techniques. By using advanced algorithms and machine learning models, these stores can analyze transaction data in real-time, looking for patterns and anomalies that may indicate fraudulent activity. For example, PayPal uses machine learning to tackle potentially fraudulent transactions. This helps them to reduce the risk of fraudsters using stolen credit card details to make purchases.
4. Increased customer trust and loyalty
By offering a convenient and secure payment option, BigCommerce stores can improve customer loyalty and encourage repeat business. Customers are more likely to return to a store if they have had a positive experience, and a smooth and easy checkout process is one such way that can contribute to a worthwhile checkout experience. Moreover, with such wallets, customers are convenient and secure with the payment method, which makes them more likely to return to the store for future purchases. Thus, moving towards gaining the trust of customers and keeping a good relationship with them.
In conclusion, implementing digital wallets can significantly improve payment security in BigCommerce stores. By allowing customers to securely store their payment information in one location and use it for transactions, digital wallets eliminate the need for customers to repeatedly enter sensitive payment information. This reduces the likelihood of data breaches and fraudulent activities, thus boosting customer confidence in your store’s security measures.
Moreover, digital wallets also streamline the checkout process, making it easier for customers to complete transactions and reducing cart abandonment rates. Overall, adopting them is a smart investment for BigCommerce stores looking to enhance payment security and improve customer experience. So, if you haven’t already, consider integrating digital wallets into your payment options and start reaping their benefits today!