The use of physical cash and standard wallets has drastically decreased since the COVID-19 pandemic; even the use of a physical credit card has fallen by the wayside in favor of using contactless payment via digital wallets. This means that it is quite possible that an enterprise’s employees are adopting digital wallets, too.
We are seeing a lot of momentum toward digital adoption and cashless transactions. Many companies are seeking innovative financial services solutions to take advantage of the opportunities this shift presents. According to a recent report, sixty percent of the world will use digital wallets as soon as 2026. Companies that want to succeed in this day and age must establish their digital wallets.
Employers that offer their employees digital wallets can simplify the payment process and save time and money. If you're tired of using inconvenient and outdated payment systems, it might be time to start preparing for the future and incorporate a digital wallet as part of is being offered to employees.
Should Employees Be Given Digital Wallets?
Employers should consider offering their employees digital wallets as part of a broad employee package. Mobile wallets are as innovative in payroll processes as they are significant in a retail setting.
There are several reasons employees should be given digital wallets, but the most straightforward answer is that employees will access their money faster, more efficiently, and in new ways.
Meanwhile, employers can run smoother payroll services, such as direct deposit, with possibly greater security for both employer and employee. Checks can get lost in the mail. ACH transactions take time to process.
Why Digital Wallets are Important
Mobile wallets are crucial for the evolution of open banking. They can improve on the seamlessness and security of transfers of data across a user's devices.
Business owners can prepare for new developments in the future by offering digital wallets to their workforce. Employees can use these to pay, receive and save through more effective channels. Digital wallets can store all payment information compactly and securely. With this, you no longer need to carry a bulky wallet in your purse or back pocket. Digital wallets allow users to transfer funds to their accounts or friends and family without setting foot in a financial institution.
Additionally, mobile wallet payments eliminate the need for a traditional bank account and can be accessed from almost anywhere. This makes transactions easier for people in rural or remote locations and helps connect them with local businesses to grow their sales.
Electronic wallets have become increasingly popular, especially for enterprises. With the near-future introduction of embedded wallets to SMBs, the market has much more potential. As more needs become apparent and wallet functionality is improved, the market for these wallets will continually grow.
Mobile wallets have been a great addition to the market and can provide more significant opportunities for broadening a customer base. With API technology for Banking as a Service (PaaS), enterprises can rethink how they want to orchestrate their payment flows. Platforms and apps like mobile wallets could also revolutionize this sector, allowing for an entirely new financial ecosystem in the process.
Digital Wallet API
The Sila Wallet API links any U.S. bank account via API for in-app payments.
Why Should Your Organization Switch to Digital Wallets?
For employers, setting up digital wallets is a snap because it offers streamlining payments from one place.
If you want to break free from managing additional payments that involve old tech, it's time to rethink your strategy and introduce digital wallets for seamless transactions.
The following benefits offer proof of why organizations should switch to digital wallets:
Security is a company's backbone. Digital wallet security features encrypt data to ensure it is only submitted to approved third parties. When a user logs onto her e-wallet, that payment information is preserved in virtually all instances, whether in an online marketplace or an office-based network. Furthermore, a user will have to verify each transaction before completion.
Users know that their payments are secure, bills can be paid quickly, and there is no longer the need to cart around a credit card or debit card to shop. Nowadays, customers can pay immediately with their mobile devices. It's quick and easy.
With digital payment methods, users can learn about the status of their accounts with a quick glance. These fintech apps provide added protection, with measures including in-app prevention to safeguard your money if you lose your device and pop-up notifications to alert users of any activity to help avoid fraudulent transactions on your account.
Flexibility for Businesses
The digital wallet is revolutionizing the business world. They often provide the flexibility needed to allow companies to keep up with an ever-changing market. Modernizing your infrastructure can help in many different ways. It can save you time and resources, not to mention a lot of money!
Digital wallets can be interfaced with your company's app and offer a better user experience. Their flexibility means you can continually update them to suit your needs, giving you and your employees more efficiency, convenience, and personalization.
Adopting Contactless Technology
As an employer, keeping information safe and relevant is a top priority. COVID-19 has had a considerable impact on the contactless transactions market. Modern-day e-wallets usually come with contactless finance features, enabling the general public and business owners to use new technologies.
Investors are now putting a lot of money into companies that create the latest technology for digital wallets. Near-field communication (NFC) and QR-code are two ways to purchase in stores. NFC is a contactless remote technology that works within a near distance (up to 10 cm) and provides people with safe payment between POS devices and smartphones.
Control Over Payments
The best thing about digital wallets is that they require users to carry less cash and fewer cards. Digital wallets make it easy to pay through various means and can even allow users to withdraw money from ATMs, should the need for cash arise.
With the power of a digital wallet, a business can keep corporate financial transactions stored in one place. Digital wallets offer a look at monthly balances and transaction history and explore transaction insights, features that will help with business finances.
Employee Engagement Increase
Electronic wallets are a way of introducing digital solutions to improve employee engagement. Employees perform better when they understand how their work contributes to the company; a digital wallet can give a detailed view of this.
Maintaining finances is becoming much more manageable, thanks to digital finance features like transaction processing and tracking. Mobile wallets can offer many benefits to your employees, and one that stands out is their ability to improve an employee’s financial wellness.
Nowadays, money has become more precious to people than it was in the past. The easy access that mobile wallets provide can help employees save for short- or long-term goals, including saving for emergencies or retirement. Employees with mobile wallets can also easily start saving at their current job, which can help get them in the habit of developing savings habits.
The Sila dashboard offers deep insights into your financial operations, analytics, charts, and diagrams to help you make informed decisions.
Employers are always looking for ways to enhance their employees' job satisfaction. Giving them access to digital wallets with clear visibility over their finances is one way to do this.
Is a Digital Wallet Necessary?
You don't necessarily need a digital wallet. However, they offer a convenient way to track finances and pay for purchases because you don't have to carry credit and debit cards around. This also increases card security-you can't lose your cards if you don't carry them.
Digital wallets are not without their own set of security risks. For example, there's the chance someone could break into your account and steal your money or make purchases with your payment information. To avoid this, it is vital to ensure that it is adequately secured with biometrics.
However, very soon, digital wallets will become an integral and necessary part of the financial landscape. This is because open banking is taking over traditional brick-and-mortar financial institutions. Digital banking is rapidly gaining popularity, so it makes sense for business owners to get ahead of the curve.
The future of money is digital and decentralized. Sila offers a Digital Wallet API that integrates with your US bank account and links verified entities, so funds flow in or out automatically. Business owners can connect the Sila Wallet API with their projects or customize it to fit their business needs better.
How to Prepare Digital Wallet & Digital Wallet Security in the Workplace
Being prepared for digital banking is crucial to adopting new technologies for businesses. While digital wallets are convenient and efficient, there is always a risk that someone with nefarious intentions can access a user's account without permission.
Make sure your security is airtight. Sila API packages come with KYC/KYB included, so you can be confident that everything is safe and sound.
Sila provides a lightning-fast identity verification process, bank account linking, and an ACH API, making business finances easy from both a productivity and financial standpoint. With Sila, users can continue managing their compliance as they choose.
Adopting Digital Banking in Workplaces
Adopting digital banking via digital wallets is one of the first steps towards managing your company effectively, eliminating the risks of dealing with cash, and cutting costs by up-selling products. Sila provides a range of smart features to simplify your financial management. It's easy to see why organizations prefer Sila: from streamlined finances to advanced data protection—Sila has everything you need.
After reading this, you may wonder what Sila does differently than others offering similar APIs. Sila's Digital Wallet API will allow users to divide up their budget, spend less time on expenses, and have everything accounted for automatically. Sila is designed to offer you a solution to all your financial problems.