Why Mobile Wallet Fintech is No Longer a 'Nice-to-Have.' It's a MUST-have.

Big brands are implementing their own white-label mobile wallets and providing value add fintech services to their customers and employees. This blog post shares some of the reasons why and explains why your business should be doing the same.

A recent report shows that the number of U.S. consumers using mobile wallets is on the rise once again following a two-year decline. In the past year, the use of any mobile payment has increased by 12% to 60% of U.S. consumers in 2019, up from 48% in 2018. And according to PPRO, 23% of U.S. consumers are specifically using mobile wallets to make payments. 

Big brands are paying attention. At the recent Money 20/20 show in Las Vegas, Uber announced the launch of Uber Money, a new portfolio of financial services including a branded debit card that works with Uber Wallet, a mobile-focused service designed to help drivers track their earnings and spending history, manage and move their money and discover new Uber financial products.

Uber follows in the footsteps of other global brands including Starbucks, Walmart, T-Mobile and more that have launched their own-brand mobile wallets to provide customers and employees with an easier way to manage their money, make payments and get faster, cheaper access to cash than ever before.

Why should your company invest in mobile wallet fintech?

The Federal Reserve estimated there were 55 million unbanked or underbanked adult Americans in 2018, accounting for 22% of U.S. households. Those people are your customers and your employees and they face a number of issues including poor or no credit which makes getting loans and making big-ticket purchases nearly impossible, in addition to incredibly expensive and time consuming processes currently available for making money transfers to friends and family, especially those outside of the U.S.

Not to mention the fact that the Gig Economy Index™ estimates that nearly 40% of the American workforce makes at least 40% of their income via gig work, and that 55% of gig workers also maintain full-time or “regular” jobs. And those workers often face slow turnaround time for getting paid and getting access to cash for time critical payments such as bills and repayments.

A mobile wallet-based fintech solution like the one offered by Valorus can help brands address all of those issues as well as:

  • Enable advanced payroll services so that gig workers can get faster access to cash.
  • Originate loans to provide customers and employees with short-term financial assistance.
  • Significantly reduce merchant processing costs and bad debt by enabling own-brand mobile wallet payments instead of credit card payments.
  • Enhance customer and employee engagement with targeted offers and loyalty programs to reduce churn and turnover.

Need another reason?

In a word – cryptocurrency. While there has been buzz around alternative currencies like Bitcoin for a while, the ability to actually use those currencies hasn’t reached mass levels of adoption. That’s set to change with Facebook’s launch of Libra – its own blockchain-powered digital currency that will enable the general public to adopt and use the alternative currency though Calibra – a digital wallet that will let users send and receive funds from a standalone app or within new WhatsApp and Messenger integrations.

For brands looking to create their own alternative currency, a mobile wallet fintech solution that enables users to not only manage and trade their investment is a must. But the real differentiator will be for brands the invest in a mobile wallet that enables consumers to use that currency to send and receive those funds and use them to make payments.

Simply put, mobile wallet fintech is no longer a ‘nice-to-have’, it’s becoming a ‘must-have’ for brands that want to retain their competitive advantage, increase their stickiness and make sure the services they offer are of real value to customers and employees alike.

To find out how Valorus can help your making implementing a white-label mobile wallet fintech solution simple and pain free, request a demo and we’ll be in touch to tell you more.