Introduction to Mobile Wallets
A long time ago, Telcos were like a walled garden. If you wanted to make a call or send an SMS, then Telcos were the only option.
But this scenario has been changed after social media apps like Whatsapp, Facebook, and Viber have started providing high-quality calling services to their customers.
Due to this, competition has increased in the telecom market. Thus, Telcos have to offer something new to their customers to stand in this cutthroat competition. And the best way to do this is that Telcos can start offering payment facilities to their customers.
Offering payment facilities will become easier for Telcos due to their large user base. As per Statista, global LTE coverage was approximately 83 percent in 2020.
With such a great potential to reach out to a large group of customers, telcos can grab this attractive opportunity by providing seamless mobile wallets to their customers.
But before making a mobile wallet solution for your business, you need to know more about mobile wallets. In this blog, we will discuss with you how mobile wallets can grow your business.
Why are mobile wallets the best for telcos?
Turning a smartphone into a mobile wallet is an excellent idea for Telcos. Telcos can use mobile wallets to get more processing fees, making region-wise ads, and for converting the currencies.
However, the fusion of mobile wallets and telcos have other advantages also. Here are the benefits of using mobile wallets for Telecom companies:
1. A new source of revenue
With mobile wallets, telcos can generate multiple revenue sources. The first one is loan origination. Under this, banks would pay some commission to telcos for using their service. Also, it can leverage the data of mobile phones for credit scoring of loans.
Loan allotment can be crucial at the places where banking facilities are not enough, so they won’t be able to use mobile phones data leveraging.
However, once your customers would start using your mobile wallets, you can share their information with other banks.
By offering customer data to banks, telcos can not only generate a new source of revenue but also help the people in a better way by helping them to get a loan when they need it.
2. Advertise with minimal costs
Let’s say you are having your dinner at some restaurant and unfortunately that restaurant does not have a POS terminal.
Then the waiter asks you for the card and you give him a physical credit card having a telco logo on it to make payment.
In another case, let’s say you are going on a trip somewhere and you are carrying a simple phone with you that does not support NFC payments.
You have purchased something from a nearby shop and you paid by your card having your company logo.
Even if the customers are using a smartphone with NFC support and use your mobile wallet, people would still ask you about a shining telco logo on the apps. It is all about the free publicity of your product.
3. Create a closed-loop
Telcos have started offering digital wallets. That is why now they have to face competition from new players also.
So you have to make a better marketing strategy for attracting more customers. Once you add your customer to the loop then it is not easy for them to leave.
The icing on the cake is mobile wallets and credit cards. Your customer’s digital payments can span through multiple areas of life including payment for your TV subscription, bill payments, food delivery, etc. Also, you can store the loyalty cards on a telco wallet.
Thus, by doing the abovementioned things, you can build a habit for your customers to use digital wallets for everything.
The habits that are created once are hard to break. Thus, your customers will think before uninstalling your app. In this way, you can get a consistent customer base.
4. Stronger customer retention
Customer retention is not only important to get higher profits but also it can create a better user base for your product. Nowadays, people use different messaging platforms that are more popular than SMS.
You can deliver great value to your customers by enabling them to send them payment links with the chat feature of the app. Thus, they do not have to switch the app.
Also, you can allow your customers to make shortcuts to your app. Due to this, your users can do their transactions without opening the app. This will allow you to give a better experience to your customers.
5. Better utilization of communication networks
The role of communication networks becomes important in making mobile payments. Telcos already have a strong communication network. Thus, can use this communication network to interact with their users more effectively.
Also, these networks use multiple nodes to pass the message from one node to the other. This transfer can be done in minimal time by a vast network of these nodes.
There is stiff competition in the market that is why many Telcos have started diving into the world of digital payments.
And it is easy for the Telcos to accept the digital payments model as they are almost similar. Due to this, Telcos can easily create a business merger with the digital payment industry.
The integration of digital payments with telcos is a unique idea and it will surely grow in the future. That is why many telecom companies have started making their own wallets.
But apart from these, Telcos can also integrate robust digital payments solutions into their business.
If you are a telecom service provider, then making a feature-rich mobile wallet is the best decision. However, making a mobile wallet platform for the Telecom business is not so easy but you can consult with a wallet solution provider for it.
The software development company can guide you in detail about your app development journey and will also show you the best way to reduce your developing costs.
I hope this blog has provided you with sufficient information on mobile wallets. If you still have any queries, then you can contact us anytime. Thanks for reading this blog.
Nikunj Gundaniya, Product manager Digipay.guru, one of the leading fintech solution providers, which provides mobile finance application development services.
He is a visionary leader whose flamboyant management style has given profitable results for the company. He believes in the mantra of giving 100% to his work.