How did COVID-19 Accelerate Mobile Wallet Adoption?

The COVID-19 pandemic has brought about significant changes in the way we live our lives. That includes how we make payments. 

As we were advised to practice social distancing and limit physical contact with surfaces, the mobile wallet accelerated as a safer and more convenient payment option. 

Demand for Safe and Contactless Payments

One of the most significant ways that COVID-19 has accelerated the use of mobile wallets is by increasing the demand for contactless payments. 

Contactless payments allow customers to make purchases without having to physically touch a payment terminal, reducing the risk of spreading or contracting germs. Mobile wallets are the perfect solution, allowing customers to make purchases with a tap or a scan of their phone. 

Reduced Need for Paper Coupons and Plastic Cards

During the COVID-19 pandemic, many people recognized the convenience their smartphones provided while shopping. Rather than carrying around wallets full of plastic cards and paper coupons, it is far easier to house all of these items in one convenient place – the mobile wallet.

Even now, when people aren’t as highly concerned about spreading germs and dirty surfaces, the added convenience has only caused mobile wallet usage to increase.

Adoption by Small Businesses

Small businesses have also been forced to adapt to the pandemic and find new ways to serve customers safely. As a result, many small businesses have adopted mobile wallet payment options, such as NFC. 

Mobile wallets are easy to set up and require minimal infrastructure, making them an attractive payment option for small businesses. Additionally, mobile wallet payments are often cheaper than traditional payment methods, allowing small businesses to save money on transaction fees.

Loyalty Incentives and Rewards

Finally, mobile wallets have been accelerated by the pandemic through the incentives and rewards they offer. As businesses try to encourage customers to return in-store, many have started offering incentives and rewards for using mobile wallets.

These rewards can include exclusive discounts, free merchandise, or loyalty points. These incentives have encouraged customers to use mobile wallets, which has in turn accelerated their adoption.

Key Takeaways

The COVID-19 pandemic has accelerated the adoption of mobile wallets as a safer, more convenient payment option. 

Contactless payments, reduced need for physical coupons and cards, adoption by small businesses, and incentives and rewards have all played a role in driving the adoption of mobile wallets. 

Now, in 2023, we know they are here to stay.