Despite the relative infancy of digital wallets, some key lessons are emerging about how any wallet provider must approach this space if they are to be successful. This briefing, which should be read alongside the two other reports on this topic, (Digital Wallets: Defining the Wallet, and Digital Wallets: Sizing the Opportunity), highlights the three most important.
Understand the importance of consumer-centric product design, in particular how this led to different outcomes for Google and PayPal.
See how Square is leading the way in product design, and where this leaves NFC-based mobile offerings funded by digital wallets.
Gain insight into exactly how co-operation between stakeholders and sharing customer data needs to work for any successful digital wallet.
What are the key success factors for digital wallets?
Which wallets are positioned for success, and who is getting it wrong?
What do I need to do in order to grow or successfully launch in this space?
Digital wallets, whether in their online or mobile form, must fulfil a need. While digital wallets can provide numerous functions and offer a growing list of capabilities, if they serve no purpose they will struggle to gain consumer or merchant acceptance and achieving critical mass will remain near impossible.
User-friendly design is critical, as clunky or complex products simply will not meet the needs of consumers. In addition to the need to create a compelling alternative to existing payment options, as wallets expand and develop they will increasingly have to compete with each other.
The digital wallet market will only achieve its full potential through mutual co-operation and the establishment of a thorough business model. It is only those providers that can develop an open platform available to consumers, merchants, technology providers, and financial institutions alike that will gain in the long term.