Mobile Wallets Reduce Processing Fees and Improve Customer Relationships


According to the smallbiztrends website, Urban Airship conducted a survey that indicates that consumers in increasing numbers are using mobile wallets for their transactions.   The report asked more than 1,000 United States consumers, as well as the same number of Great Britain adults to analyze their abilities, expectations, and give reasons for adopting mobile wallets, as opposed to continuing their usage of their brown leather counterparts. Although customers are showing considerable interest, that does not translate into numbers that indicate that this trend is progressing as rapidly as market experts had earlier expected. In fact, according to Mobile Payments Today,

  • Many merchants do not accept mobile pay because they do not see the benefits of mobile wallets.
  • Customers are not as willing to warm up to the idea because of security concerns. Identity theft is real, and they do not want their personal information compromised.
  • Consumers also believe that it's easier paying with bills or a card.

Main Barrier

Everyone does not yet have a smart phone, even though the numbers of those that do are fairly high. For the first time user of a smart phone, this means of communication is sometimes quite daunting to the beginner. Chances are, for instance, a first time user is not likely to know how to use apps right away--which is essential for the use of one's cell phone as a wallet. 

Nevertheless, more and more people are becoming educated about their use, and increased information is available to debunk certain myths about mobile wallets.  Thus the Mobile Payments Today website has predicted that by 2020, increasing numbers of people will be leaving their traditional leather wallets at home.


  • One of the main benefits of mobile wallets is that they help improve relations between customers and retailers by helping those retailers see customer feedback about promotional campaigns in real-time. 
  • They cut transaction time significantly, allowing customers to tap and leave the line, instead of having to search for cash using their wallets, or look for their cards. They attract more customers as word gets around that this company has their customers out more rapidly than those still only accepting paper and plastic.
  • Also, it will be more difficult for a criminal to steal your information, unlike using plastic. 
  • In addition, market experts expect card processing fees to plummet over time for mobile wallet transactions. Thus gone will be the days when a retailer has to charge extra for credit or debit card transactions below a certain amount to cover the charges the credit and debit card companies are leveling against them.


Given time, most consumers will reach the conclusion that it is better to switch to mobile wallets. For more and more, people will be buying smart phones, and becoming better at using them. Thus "tapping and going" will become more appealing. Therefore, it behooves small businesses, as well as their larger counterparts, to start using this technology. This is an investment that could pay dividends to these entities in the long run.