Banks hold the keys to digital wallet adoption.

AuthorShrauger, Sam

Remember when cash was king?

For many people today, that's ancient history. Our world is one where a growing array of form factors are gaining traction as new ways to make payments--digital wallets, smart phones, and tablets--on top of checks, credit, debit and prepaid cards. While this redefinition of how people pay does bring added complexity to the payment system, it is done with the goal of solving one primary consumer pain point: make online purchasing as easy as online shopping.

Take for example the proliferation of digital wallets that aim to simplify the consumer purchase experience online. This is creating opportunity for all stakeholders--financial institutions, acquirers, merchants, consumers and beyond. Of these groups, let's focus on financial institutions. Simply put, their role is arguably the biggest driver in the adoption of digital wallets.

Simplicity and trust are paramount

Some of the bigger questions that financial institutions face is which wallet to adopt and when? The noise in the market today, from both recognized brands and new entrants, can create the same decision paralysis that consumers face at checkout when given too many options. Perhaps the best way to look at the question is from the bank customer's point of view. What consumers value, and therefore what will drive widespread adoption, is a combination of simplicity and trust.

Simplicity of use means taking friction out of the transaction--making complicated checkout a thing of the past. Storing account numbers for multiple cards, billing and shipping information so there's no more manual data entry, making the transaction as easy as a finger touch or mouse click, are the goals here. The notion of simplicity extends to the issuer too when we're talking about V.me. V.me utilizes the already existing Visa communication channels, provides marketing support for issuer en rollment, and delivers transactions to the merchant's acquirer--and handles them as they are today.

Trust is just as important. Visa brings more than 50 years of experience in payments to develop innovative solutions that are designed to minimize fraud and protect cardholders. And it's worth noting that consumers also want to sign up for their digital wallet service through their issuer, where they already have a highly trusted relationship.

Much of the complexity mentioned above is what a digital wallet service like Vane is built to eliminate. Visa...

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