A Bank in your (Digital) Wallet

Posted on by Antony
BORN Views
A Bank in your (Digital) Wallet

If there is a recent fintech innovation that can be compared to sliced bread, it has to be digital wallets. In less than the time that it took for people to start banking online, secure, fast and convenient digital wallets have taken over how people store and use money. 

Our physical wallets consist of a mix of cards that confirm our identity, cards issued by financial institutions allowing debit or credit as well as cards that collect loyalty points. A digital wallet seeks to combine all of the above, and then some.

A digital wallet, or an e-wallet as it sometimes called, is a software-based financial account that securely stores users’ payment information and passwords. With this technology, users can quickly complete transactions and pay for them. Digital wallets can be cloud-based or use near-field communications (NFC) technology. When used on mobile phones, they enable smartphone payments. A digital wallet can also be used to store tickets, loyalty cards, and coupon information.

It appears that while digital wallets were already becoming popular, in 2020 their growth – like with that of eCommerce – got another push. Market research firm Apptopia says that mobile app sessions on the leading money remittance apps – such as PayPal, Remitly and Xoom – surged 10.7% in the first two and half months of the year alone.

Digital cash for digital wallets

Before digital wallets, there were contactless stored value cards using RFID and NFC technologies such as the FeliCa cards in Japan, developed by a subsidiary of NTT DoCoMo and Sony. The technology is used by millions of commuters around Asia on rail networks and was used as the basis for NTT DoCoMo’s Osaifu-Keitai, Japan’s de facto mobile payment system.

The idea of digital cash – and the term eCash – however, was floated in a paper in 1983 by researcher David Chaum. Chaum tried to commercialize his concept – named eCash – in a startup that anonymized and encrypted transactions using public key digital signatures. eCash was the basis of cryptocurrencies such as Bitcoin. However, it took until 1989 and the launch of PayPal for the idea of digital wallets to become widespread. Available for both Android and iOS users, PayPal’s relative ease of use has made it the widest used digital wallet globally. Customers have the option of paying with the app, which uses the same process as tap-to-pay options like Apple Pay, or swiping a PayPal Mastercard to make purchases in-store. PayPal also owns Venmo, the popular peer-to-peer payment app.

Technology companies were early into the payments game too. In Asia, communication apps WeChat, LINE, KakaoTalk, and Naver, all have embedded digital wallets. WhatsApp’s version is undergoing trials in India and Brazil first. Samsung Pay can not only be used with NFC but even with traditional magnetic stripe technology. Tech behemoths Google and Apple were later to the game but Google Pay – a combination of Google Wallet and Android Pay – and Apple Pay, supported on iPhones, iPads, Apple Watch, and Macs, are lumbering up to take on the competition. Apple Pay’s two-factor authentication including fingerprint (Touch ID) and Face ID means amounts that can be authorized are higher.

In the US, Walmart Pay uses QR codes – also used by Alipay in China – as opposed to tap-to-pay that relies on NFC technology. This wallet can also be used to organize Walmart gift cards, create shopping lists, store receipts, refill your prescriptions, and even find an item’s location inside your preferred store. 

Other players in the market include Cash App (released in 2014 by Square, and can only be accessed with your fingerprint for extra security), and also stores boarding passes, concert and movie tickets, loyalty cards and coupons. The app Due provides invoicing and time tracking but also offers a digital wallet and along with payment processing and banking capacities. They also happen to own the trademark on the word ‘eCash’ first promoted by Chaum.

Effects of and on eCommerce

With a boom in eCommerce this year, retailers need to keep up with their customers’ preferences for digital wallets and include all these options in their checkout. Here are some of the ways that digital wallets will impact the customer journey and the retailers’ balance sheets;

  • Customer behavior The companies offering these digital wallets – like the banks before them – have knowledge of their buying behavior in a granular sense.
  • Convenience: Not just for the customers who don’t have to open actual wallets, fill out forms or login online, retailers can also conveniently send and receive payments.
  • Reduces expenses Transfer fees and charges are much lower than on traditional banks. Some apps even allow retailers to eschew pricey POS systems.
  • Improved cash flow Credit card or check clearances can take a lot of time. Mobile eCash payments can speed up the process. Most transfers are completed within 72 hours with some even happening instantly. 
  • Conversion rates The convenience and speed while using digital wallets is one strategy that can help increase conversion rates and reduce abandoned shopping carts. Coupons, discounts, promotions can be beamed to customers in-store and loyalty points awarded.
  • More sales opportunities Since wallets are contained on phones, and most people carry their phones everywhere, location isn’t really a problem anymore. This increases sales opportunities making sales truly omnichannel.
  • Security With extra levels of authentication, a digital wallet is much more secure than a credit card. 

Digital wallets around the world

In Asia and Africa, where cash was formerly king, vast swathes of the population have sidestepped credit and debit cards to go straight to mobile payments. Alipay, offered by eCommerce giant Alibaba, and started out as an escrow service between eCommerce buyers and sellers is China’s leading third-party payment solution and digital wallet. In 2016, Alipay expanded to Europe to offer Chinese tourists traveling there a way to make in-store payments and receive offers and now has over a billion users worldwide. In India, its equivalent is PayTM. In Africa, and in particular Kenya, Vodafone M-Pesa allows users to deposit, withdraw and transfer funds, pay bills, and purchase mobile operator services. 

As eCommerce becomes more commonplace, digital wallets are starting to gain favor with customers and in turn, gain ground from banks. Square, for example, has received conditional approval to open a bank. Recognizing this propensity to transact online and on the phone, banks around the world are working on central bank digital currencies (CBDC) capabilities. 

Noting the banking-like features that digital wallets offer, Hong Kong and Singapore regulate digital wallets as stored value facilities. A new bill was tabled earlier this year in the US called the ‘Banking For All Act’ that mandates that all banks that are members of the Federal Reserve open and maintain ‘digital dollar wallets’ for all persons. The unbanked and the underbanked around the globe might fuel the next wave of digital wallets and we will be more digital money to fuel our digital lives.

BORN Group’s Year in Review

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BORN Views
BORN Group’s Year in Review

On our one year anniversary of being acquired by Tech Mahindra, BORN Group reports a transformative year looking back at our expansion of services and accolades as an agency. In face of the pandemic, BORN has kept buoyant, thrived, and secured landmark wins and awards to continue its status as the most decorated agency of its class.

BORN commanded over thirty-seven award wins throughout 2020. Client work with brands like Starbucks, Cadbury, Digi, Frette, Cartier, Tata Cliq, Tata Cliq Luxury, Tata Tetley, Love Bonito, Changi Airport Group, and Sour Patch Kids enjoyed high honors across the globe, receiving distinctions from the Communicator Awards, the Lovies, the FoxGlove Awards, Campaign India Digital Crest, the dotComm Awards, the Mob-Ex Awards, and the Digies. These wins centered around delivering excellent UI/UX, cultivating best practices, and ensuring best consumer engagement for these marquee brands.

As an agency, BORN Group received various commendations, winning Gold for Best Digital Consulting Agency of the Global Brand Magazine Awards, Company of the Year in Advertising, Marketing, and Public Relations by the International Business Awards, an Agency of the Year Finalist by the Drum Awards, and named advertising + Marketing Research Agency and Brand and Design Agency of the Year. BORN Group’s CEO, Dilip Keshu, was also distinguished as an Entrepreneur of the Year by the International Business Awards, otherwise known as the Stevies, while the agency also enjoyed numerous accolades via partner awards, namely in receiving the SAP APJ Excellence Award 2020 for SAP Customer Experience, Most Innovative Partner of the Year Award by the 2020 Bloomreach Awards, and Best User Experience and Design by the BigCommerce 2020 Partner Awards.

As part of its acquisition by Tech Mahindra, BORN Group undertook a complete digital overhaul to capture their full suite of offerings, verticals, and 80+ comprehensive case studies. The new site was recently awarded multiple CSS Design Awards for Best UX Design, Best UI Design, and Best Innovation, along with an honorable mention from the awwwards. 

Behind all these accolades were our fearless BORNies. With over eighty new hires this year, including key hires in management positions with the additions of, Minna Rhee, Managing Director, North America, Reji James, Head of Managed Services, North America and Dustin Holmstrom, Head of Digital Architecture, we’re proud to note our team grew despite the many challenges of 2020. Finally, BORN came together to build and deploy state of the art strategic frameworks in Stella and SMOC, and pledged support toward change through contributions to the BORN Equality Fund.

With 2021 on the horizon, we look to move towards a post-pandemic world more resilient and able than ever.

As we say here at BORN, onwards and upwards!

Insights, Trends, and Predictions for 2021

Posted on by Antony
BORN Views
Insights, Trends, and Predictions for 2021

The next few months should see us at the cusp of a post-pandemic economy – with multiple vaccines looming over the horizon, there is a light at the end of the tunnel for another tumultuous year globally – a new US President and people adjusting to a post pandemic world. There’s a few trends born out of the disruptions over the year to note when considering the state of eCommerce moving into 2021, and I’ve decided to highlight what we believe are the five most important trends. Of course, I hasten to add, every single one of my predictions could be wrong. I have learned at a very young age that I have no orbuculum at my disposal and my scrying is a game of dice!  

Each trend connects with a greater cluster of users, from the consumer all the way to the integrity of the digital economy, so understanding each pillar of these predictions can go a long way in preparing for future disruptions and innovations ahead.

Hyper-personalizations: Considering the Consumer Alone

As buyer profiles grow more and more distinct with the aggregation of big data and the development of machine learning, hyper-personalization is a vital component of building modern customer experience. The world will move from broad segmentation to one to one marketing as the technology to further target content to the individual advances. We’ve begun to see this already to great effect in social media eCommerce as platforms like TikTok and Instagram have mastered the endless scroll via tailoring content specific to the individual, and now we see clear opportunities for early adopters in both B2B and B2C spaces to capture significant growth. Marketing to broad segments like Millennials or Baby Boomers won’t do. Everyone in these segments is unique so think about how you deliver 1:1 personalization. 

The Elastic Enterprise: Reevaluating Business Models

With demand and supply becoming global, business models will change. We will see more Direct to Consumer (DTC) and composite hybrids – B2B, B2C and B2B2C power the digital economy. Both DTC and B2B2C are now proven business models that have challenged conventional wisdoms in eCommerce and thrived in the wake of their disruption. Throughout the pandemic, DTC models have transformed household essentials into subscription based services that are tailored to one’s needs and personalized to their wants. B2B2C models on the other hand have allowed businesses to specialize in providing services to other smaller businesses who you may engage – like an air conditioning supplier (B) who works with the small business contractor (b) you (c) trust. 

The Longitudinal Book of Record: Understanding Connected Data Science

So I know your name and email. Over time I get to know your preferences.I keep building the small stub of information I have on you- like building a longitudinal book of record. Omnichannel has long been an established pillar of the digital economy, but going into the next decade, connected channels and the data science behind them will only skyrocket in significance. Companies will rely on building an infinitely extendable longitudinal book of record by collecting and compiling data from various channels – connected channels will be the next big thing. Efficient and effective CRMs, OMS’, and ERP solutions will help ensure that a business has that central node by which all customer interactions can connect towards. Building that book of record is the key piece in accumulating and executing the data to accomplish the sort of CX transformations like hyper-personalization that distinguish one commerce practice from another.

The Speed of the Human Mind: Powering Mass Consumption Instantly via 5G

Infrastructure across nations, cities, homes and businesses will upgrade to 5G to cater to mass consumption of information, instantly, everywhere, and as a result, the consequences to the digital economy will be staggering. Already we’ve seen brick and mortar rapidly erode from its conventional use-case as the nexus of shopping into a portal of customer experiences and tailored moments to match robust eCommerce solutions. 5G and the ensuing wave of digital infrastructure will only accelerate those trends further as it becomes even easier to search, engage, and purchase via any electronic device. Furthermore, that digital infrastructure can capture new consumer markets globally, putting more emphasis on useful technologies that can ensure fulfillment and tax liability across the world. So are you ready to deliver rich media. Chips, computers, phones, infra and 5G are ready to deliver it. 

Resilience: Safeguarding Your Business and the Digital Economy

All it took is one pandemic to change the nature of business irrevocably. Companies will seek to protect themselves from such events – a mindset to be battle ready in all circumstances has emerged. Both digital security protocols and multiple routes of fulfillment will be top of mind for businesses as the world moves closer to a pandemic vaccine. Tools to ensure credit monitoring and ID theft protection will find more and more value as we tilt even further into a digital first economy.

All in all, these insights reveal a commanding trend towards leveraging new technologies to heighten CX in the space. Between personalization, distribution, speed, and safety, disruption comes in many waves that each elevate a business towards the most efficient and effective commerce experience. We’re excited to implement these insights and heighten the brands we work with over the next years, and capture our onwards and upwards sentiment with the changing digital economy. In short: is your business capable of change. Rapidly. 

Best Practices: CPQ (Configure, Price, Quote)

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BORN Views
Best Practices:
CPQ (Configure, Price, Quote)

Use CPQ (Configure, Price, Quote) Wisely!

In recent years, businesses have adopted to CPQ (Configure, Price, Quote) systems to provide configurable products as a personalization option for their customers. CPQ systems provide the flexibility for a customer to mix and match options available for a product they are interested in while simultaneously delivering a personalized end-to-end buying experience. Its also important to be mindful of launching the right strategy for CPQ functionality for your end customer, with a well thought out roadmap based on an array of factors including, customer behavior, business needs, and market trends. 

With that said, the adoption of CPQ isn’t necessarily for everyone, but it’s critical to start by answering the broad question, ‘Will this offering really accommodate and help the customer to make their buying decision?’ As we keep the customer at the center of everything we do, it’s critical to make the path to purchase completely seamless while simultaneously empowering the user. 

In most cases, the adoption of a CPQ strategy will have a direct impact on conversion rates and revenue. If the right CPQ strategy is not rolled out for the market segment that you are targeting it could spell disaster on conversion rates. Also, the longer it takes for the customer to complete the buying journey could directly impact the revenue. 

The broader considerations can be split further into more granular aspects as listed:

Customer Behavior

  • Age of the customers interacting actively with the brand.
  • The cultural background of the end customers.
  • Existing brand engagement metrics.
  • Market sentiments towards the brand.

Business Needs

  • Challenges in maintaining Product data.
  • Challenges in materials procurement.
  • Challenges in stock allocation.
  • Challenges in production for pre-configured items with demand.
  • Challenges in the maintenance of pricing for pre-configured products.

Upcoming Market-Trends

  • Trends are driven by social media and networking.
  • Innovation or market disruptions related to the product lines.
  • Transparency on pricing options.

It has become essential for businesses to strike a balance on having the right mix of options, messaging, and possibly gamification of the customer buying journey for a configurable product and also make it responsive enough to be delivered to any digital touchpoint where the customer interacts with the brand. Also, in addition to rolling out a product personalization feature to the customer, it is also important to monitor the interactions of the end customer with the CPQ feature. This provides valuable insights to allow you to improve upon your offering to ultimately enhance customer experience and conversion rates.

Apart from the major business considerations, it is equally important to choose the right CPQ product and eCommerce stack that can work well with your backend systems (ERP, CRM, etc.).  

All the above-mentioned considerations, analysis and decision making can seem intimidating. Here at BORN Group we specialize in CPQ and can help you to navigate a rollout strategy along with ongoing maintenance. Please feel free to reach out to Mackenzie Johnson, [email protected] for more information on our service offerings.