Online business isn’t exactly new, but in 2023, it’s definitely changing. That’s because the latest technology, specifically Web3, and mobile, are working together to overhaul the entire purchasing experience for both businesses and consumers. This includes a variety of cost-saving and experience-enhancing benefits that were simply not possible ten years ago. What follows are five major ways this new fusion of tech is changing the landscape of online payments.
Reducing Costs One benefit that can come from utilizing mobile technology for payments is the ability for vendors to reduce overhead by cutting out the middleman of payment processors. Right now, credit card and digital payments are run through third-party companies, who always take a cut of the proceeds. This is further exacerbated online, where these companies often charge additional “card not present” fees. With Web3 wallet payments from mobile phones, these same transactions can happen directly between the customer and the business, allowing the company to maximize profits on sales. Fraud Prevention Web3 and smartphones also allow all payments to be connected to a specific digital ID. Utilizing blockchain-powered identities, these can then be paired to a user’s own mobile device. This will make it simple for them to make payments but also means that businesses can have more insight into who they are interacting with. This can be a major benefit for Know-Your-Customer compliance and general fraud prevention. These Web3 IDs can be verified via biometrics or other unfalsifiable credentials, making it impossible for a user to impersonate someone else. This will make it much easier for businesses to stay in line with regulations while providing their customers with a smooth purchasing experience. Accurate Metrics Having all payments be linked to verified digital identities also comes with other benefits. One of these is the ability for vendors to collect and analyze perfect metrics from their customers. Data gathering is imprecise and invasive, but with Web3, it doesn’t have to be this way. Information gathering can be highly accurate and an optional choice put into the consumers' hands. Users can even be rewarded for opting in. When enabled, these metrics can help with things like deciding what needs to be ordered, being aware when trends are changing, or even predicting various customers’ needs. All of this and more can further improve satisfaction while also cutting costs. Accept Any Currency The digital world is already filled with many unique types of payment options, and vendors often have to account for being able to accept completely different currencies. While it is already common for an online shop to utilize more than one form of money, they rarely include them all, and it can be a very hit-and-miss system. Mobile Web3 payments can help here, too. Vendors and consumers can set up web wallets that cater to a wide array of assets, and any customer can easily pay in their preferred asset by simply utilizing a QR code and their phone. Payments can even be automatically converted into the currency preferred by the seller. This makes the entire system more frictionless and allows virtually anyone to patronize any business. Loyalty Programs And New Forms of Revenue One last major boon that Web3 can provide is a more complex and intimate relationship between consumers and brands. Current loyalty programs usually include signing up and using a card to earn points. In this new system, customers can be offered more engaging experiences and rewards. This could mean things like exclusive digital assets, special access to events online or in-person, discounts, or much more. Rewards can be tailored to a user’s activity and history, and by providing a more immersive experience, brands can open up new revenue streams by allowing users to buy and sell some of these perks while taking a small resale cut. The possibilities are many, but they wouldn’t be possible without the power that this technology brings. There are countless other possibilities that Web3 can open up for online business, but these five highlight the most critical and innovative opportunities for any business right now. About the author: Toby Rush is a twenty-year mobile industry veteran with extensive deep tech experience as both a founder and an investor. Currently, he is CEO and co-founder of Deem, a connectivity and identity platform that delivers streamlined, secure digital experiences with the simplicity of a phone number.5 Ways That Mobile, Web3 Payments Can Upgrade Online Businesses By Toby Rush
