Digital payment is the backbone of online shopping. It is cost-effective, convenient, fast, and increasingly popular day by day.
There are several ways to perform digital payments while shopping online such as Point of Sale Machines (POS), Mobile Banking, Internet Banking, Digital wallets, etc.
I’d like to bring your attention to digital wallets, which have become mighty popular in the last six years. It is one of the most preferred ways to make digital payments (electronic payments). By using a digital wallet, users can complete purchases easily and quickly with near-field communications technology.
A digital wallet is a software system that facilitates electronic transactions with the exchange of digital currency to purchase goods and services.
Google Wallet, Samsung Pay, Android Pay, and PayPal are some of the most popular digital wallets.
Digital Wallet is the most used eCommerce payment method according to WorldPay Global Payment Report 2021.
The pandemic has only furthered the use of digital wallets.
According to an estimate, 110 million Americans have used a digital wallet at some point in their lives. That’s almost 30% of the total population of the country.
Interestingly, half of all 18-38 year-olds use digital wallets regularly. But other generations are catching on: 40% of people between 41-56 year-olds say they’ve used a digital wallet in the past year, followed by 17% of people between 57-75 year-olds.
So, digital wallets are popular among people of all ages due to their versatility and effectiveness.
You’d be surprised to know that some merchants establish a digital wallet system in their online stores that customers can use to make purchases. And that is the focus of this article.
What is a Digital Wallet System?
A digital wallet system is an in-store payment method that registered customers can use to purchase your products & services. It essentially is a digital wallet service that registered users can exclusively access in an online store.
Here are the basic features of the digital wallet system:
- Customers can use their Wallet amount to buy products.
- Admin can refund cash to customers’ wallets.
- Customers can recharge their wallets anytime.
- Customers will receive email notifications on every transaction.
- Admin can check customers’ wallet transaction history.
- Customers can view their transaction details.
- Link wallet to global payment gateways.
By looking at the features, it’s safe to say that the digital wallet system works almost like an average digital wallet app, but it’s limited to your online store only.
If you are a WooCommerce store owner, you can use a digital wallet plugin to implement a wallet system.
But why would one implement a wallet system for WooCommerce when dozens of wallet apps are already in use?
Let’s take a look at the reasons.
Benefits of the Digital Wallet for WooCommerce
There are benefits of implementing a digital wallet system in your WooCommerce stores, such as low transaction fees, a fast checkout process, increased security, and more. Above all, it is a surefire way to provide a reliable alternative to traditional payment methods.
1. Minimize Transaction Fees
Merchants have to pay transaction fees to process payments of their customers. The processing fees can vary depending on the processing service.
Although the transaction fees take a small percentage of the payments, it takes nonetheless. To reduce this additional cost, merchants rely on a closed-loop payment system where transactions are processed internally.
The WooCommerce wallet system allows you to process transactions internally. Customers only have to use other payment methods to recharge their wallets, and after that, they can use the wallet amount to shop in your store.
The wallet system reduces the number of customer transactions processed by payment processors.
2. Streamlines the Checkout Process
One of the most crucial factors to assure a successful purchase is a streamlined checkout process. But if there are problems during the checkout process, it becomes the biggest deal-breaker.
Fun Fact: The average documented online shopping cart abandonment rate across all industries is 69.80%.
There are several reasons why customers abandon their carts, but speed is the primary one.
Filling too many form fields during checkout also contributes to cart abandonment as it lengthens the checkout process.
It is tiring to enter your credit card or net banking details for each purchase. Sometimes people don’t get their net banking password right, or they may have to look for their credit card.
Button line: Entering payment information is a chore.
And it is most difficult for mobile users. According to a report, 39% of mobile users abandoned their carts because it is difficult to enter their personal information.
Whereas, Digital Wallet for WooCommerce eliminates the need to enter payment information to complete the checkout process. Your customers can purchase products and pay the amount using their wallet balance with a few simple clicks.
3. Enhance Security And Mitigate Risk
Online payments are safer than offline ones, but they aren’t entirely secure either. Digital payment methods are prone to fraud, glitches, and hacking attempts.
I already have a detailed article on WooCommerce fraud prevention. So, please give it a read to learn the fraud prevention methods.
Now, coming onto the transaction glitches and hacking attempts. There are three possible scenarios where a wallet system is helpful:
- Customers lose their money due to glitches in the payment process.
- Compromised payment gateways.
- Hackers steal the credit card details of your customers.
WooCommerce Wallet establishes a closed-loop payment system. No payment gateways and banks are involved in the purchase process as the payments are processed internally.
Therefore, it is better as well as safe for the customers to use their wallet balance for purchasing your products and services. In this way, WooCommerce Wallet eliminates the need to save credit card details or any other sensitive payment information on your WooCommerce store.
Button line: It improves security and mitigates financial risk.
4. Improving User Experience
Customers might not always have access to their credit card, net banking service, or mobile payment options due to various reasons. In such situations, the WooCommerce wallet comes in handy.
Customers have to log in to their WooCommerce account and purchase your products using their wallet balance.
The Digital Wallet for WooCommerce increases the ease of the payment process and enhances the security of your online store. Both of which are standards for improving user experience.
Hopefully, you now understand the benefits of using a digital wallet for WooCommerce. It’s time to give rest to the discussions and jump right into the implementation.
And we have the perfect solution for you to implement.
Enter, Wallet System for WooCommerce
Wallet System for WooCommerce plugin helps you implement a digital wallet system in your store. And allows registered customers to perform eCommerce transactions using the wallet system.
The customers can add money to their WooCommerce wallet through the available payment methods. And also, see the list of transactions made using the wallet money. The merchant can manage the customers’ wallets and change the wallet amount.
Add the WooCommerce Wallet Plugin
Implement a reliable payment method using the wallet system and put your payment processing in top gear.
How to Setup Wallet System for WooCommerce
The Wallet System for WooCommerce is a free plugin, but it’s by far the best digital wallet for WooCommerce.
As the ‘Wallet System for WooCommerce’ plugin is free, you can go to WP Swings’ WordPress.org page to download it.
The steps are as follows:
- Download our WooCommerce wallet plugin.
- Now, go to WordPress Dashboard > Plugins and click Add New.
- Click the Browse button, upload the plugin, and click on Install.
- Hit Activate and you’re all set to use Wallet System For WooCommerce.
Manual Installation: Upload the Wallet System For WooCommerce folder to the /wp-content/plugins/ directory and activate the plugin through the ‘Plugins’ menu in WordPress.
Features of Wallet System for WooCommerce
- Recharge WooCommerce wallets with available payment methods.
- View wallet transactions (credit/debit).
- Transfer wallet amount to other users.
- Earn wallet cashback on purchase.
- Receive notifications on wallet top-up, the wallet credit, and wallet amount deduction.
- Make withdrawal requests to merchants.
- It works as a complete and partial payment method.
- Use the shortcode [wps-wallet] to display the user wallet.
- Restrict wallet functionalities for users.
- View the wallet balance and the transaction history of all the users.
- Add or remove funds from all users in bulk or individually.
- View all wallet recharge orders in a separate order list in the WooCommerce section.
- Compatibility with
As you can see, this plugin is beneficial for your WooCommerce store and your customers. It will improve your payment process, security, and overall user experience. If you want more features, then you have to get the Wallet System for WooCommerce Pro.
The free version has a plethora of features that streamline the WooCommerce wallet management and operations. But the pro version takes it even further —
- Display wallet balance in the widget
- Offer credits to users on favorable actions
- Create recharge coupons for the wallet
- Invite users to join the wallet system
- Admin can export transactions history in a .csv or Excel format
- Set the maximum/minimum limit on wallet recharge by users
So, let’s dive into the setup process.
What Can You Do Utilizing the Digital Wallet for WooCommerce?
The first step is to Enable the ‘Wallet system for WooCommerce’ from the general settings. Afterward, you can proceed to configure the various features.
1. Partial Payment Options for Wallet Users
Select the partial payment option to submit the partial deposit when the order value is larger than the wallet balance. To save your changes, click on the Save Settings button.
Case A: If the WooCommerce wallet balance exceeds the total order value, it will work as a payment option.
Case B: If the WooCommerce wallet balance is lower than the total order value, it works as a partial payment method.
2. Edit Your Customers’ Wallet Amount
The ease with which the admin can update there is something to marvel at. You have multiple ways to edit (debit and credit) the users’ wallets:
Follow these steps to edit the wallet balance of your customers:
a) Debit or Credit the wallet of all users in one go.
b) Import wallet balance from a CSV file. It allows you to selectively edit the wallet value.
C). Edit the wallet balance individually from the user table. Moreover, you can use the View button to see the transaction history of the wallet users.
3. Limit the Access of Users to Wallet Features
With all payment systems, security is a significant concern because not all users on your online store are going to play well.
The wallet system lets you punish malicious users and restrict their access to all features. The following features are inaccessible:
- After restriction
- Add Balance
- Wallet Transfer
- Wallet Withdrawal Request
The restricted user can only view wallet transactions and use the remaining balance to make purchases.
4. Manage Withdrawal Requests of Your Customers
All major digital wallets allow their users to withdraw money back into their bank accounts. It is crucial as people feel much safer putting their money in a digital wallet if they can easily extract it at any time.
Considering this, the Wallet system for WooCommerce allows your customers to file a withdrawal request to transfer money from their wallet accounts into their bank account or any other payment app.
In the Withdrawal Request tab, you can view and manage all withdrawal requests in a tabular format and filter them according to Keywords and Status.
In the Withdrawal Request tab, you can Approve, Reject or choose to keep the request Pending.
Note: You have to resolve each withdrawal request manually.
5. Improve Custome Loyalty With Wallet Cashbacks
WooCommerce Wallet system is essentially a payment option, but it carries out the functions of a loyalty program too. You can offer cashback rewards (Percentage and Fixed) to wallet users directly into the users’ wallets irrespective of the payment method used.
Moreover, there are two kinds of cashback rules:-
Cart-Wise Rule: This cashback rule applies to the first product of each product type added to the cart.
It shows a cashback reward notification to the users.
Category-Wise: This cashback rule applies to the product categories eligible for the wallet cashback offer.
Per-Category Wise Cashback: With the pro version of Wallet System for WooCommerce, you can also set cashback for individual categories.
6. Improve Custome Loyalty With Wallet Cashbacks
Positive reinforcement is widely applied in eCommerce to make desirable shopping behaviors reoccur. Using the same method in our wallet system, you can offer rewards to customers for the following actions:
- Credit Amount On User Daily Visit
- Credit Amount On New User Registration
- Credit Amount On Comment
It effectively creates a WooCommerce Credit system to increase user engagement, userbase, and utilization of user-generated content.
7. Connect the Digital Wallet for WooCommerce With External Apps
REST API tab enables you to generate API keys for WooCommerce Wallet System. You can use those API keys to allow external apps to view and manage wallets.
The generated API Keys allow you to execute the following functions:
- Recover Users
- Retrieve particular user wallet amount
- Retrieve particular user wallet transactions
- Update wallet of users
8. Generate Wallet QR code
The users can generate and share QR codes for their wallets. An individual user can scan the wallet QR code of other users and recharge their wallets.
9. Invite Others to Join Wallet System
The wallet users can send email invitations to individuals outside the wallet system to join it.
10. Create Coupons With Wallet Coupon Organizer
WooCommerce wallet system allows you to create wallet coupons that customers can redeem to add balance to their accounts.
Send these wallet coupons to your leads and customers through social media, live chat, email, SMS, etc.
To use these coupons, the user has to go to My Account > Wallet > Wallet Coupon Redeem, enter the coupon code, and click on Redeem Coupon.
11. Extend the WooCommerce Wallet System With Added Functionalities
The Wallet System for WooCommerce is sufficient on its own. However, it is compatible with other plugins, allowing you to extend its features.
a) Compatibility with Subscriptions For WooCommerce: The compatibility allows the customers to use the Wallet partial payment feature to pay for subscription products.
Subscriptions for WooCommerce
Effectively Sell and manage subscription products & services using the WooCommerce Subscription plugin.
b) Compatibility with RMA for WooCommerce: The Wallet System for WooCommerce is compatible with RMA Return Refund & Exchange For WooCommerce Pro. In this compatibility, the users can request the refund amount to be transferred directly to their wallets.
c) Compatible with the WPML: The Wallet System For WooCommerce is compatible with the WordPress Multilingual (WPML) plugin for language localization of the wallet system plugin’s strings.
d) Multivendor Marketplace Solution for WooCommerce: Our WooCommerce wallet is compatible with the Multi-Vendor Marketplace Solution for the WooCommerce plugin.
These are the compatibility we offer with our WooCommerce wallet system. But we can establish compatibility and make customizations according to your business requirements. So, feel free to contact us.
There you have it, folks — the premium and freemium features of the WooCommerce wallet plugin.
The setup process is simple. Even if you’re new, configuring the settings won’t be much of a hassle as most of them are self-explanatory. For a more detailed explanation of the setup process, please refer to the documentation.
A Digital Wallet for WooCommerce Customers
This plugin adds the wallet tab in the WooCommerce account of your customer. In this tab, your customers can see their current wallet balance. To use the wallet, customers have to create an account on your WooCommerce store and go to My Account > Wallet.
The wallet tab contains the following features:
- Add Balance
- Wallet Withdrawal Request
- Transaction History
1. Add Balance
Customers can recharge their WooCommerce wallets with the available payment methods in your store.
2. Wallet Transfer
Customers can transfer their wallet amounts to other wallet users on your WooCommerce store. They have to enter the email address of the receiver, transfer amount, and state the reason for transferring the amount.
3. Wallet Withdrawal Request
Customers can withdraw money from their wallets by filing withdrawal requests. They have to enter their withdrawal amount in the amount box and provide back account or other payment details in the note field.
Here, the wallet users can view their wallet transaction history and monitor their spending. The transaction list contains entries for wallet recharge, debit, credit, transfer, and withdrawal, and email addresses of the creditor and debtor.
As you can see, the design is simple, clean, and minimalist. This digital wallet for WooCommerce is easy to use and provides a flexible payment option to your customers.
The best part is that you can have all wallet plugin features and benefits for FREE.
On a Final Note
Digital wallets are becoming increasingly popular because they are safer and easier to use for people of all ages.
In this article, I have explained the benefits of the digital wallet for WooCommerce stores. Also, I’ve shown you how to set up the wallet system.
The Wallet System for WooCommerce enables you to implement a digital wallet on your online store. It provides an alternative payment method, improves security, speeds up the checkout process, and enhances the overall user experience.
And hey, check out our blogs If you want to learn more about best eCommerce practices.