The Best Digital Wallets to Accept in Your eCommerce Website

Familie & Finanzen: So gehen Familien in Deutschland mit Geld umFamilie & Finanzen: So gehen Familien in Deutschland mit Geld um
Nick Knuppe
Head of Product Marketing
Customer-centric marketer, fanatical about GTM.

The harder it is for your customer to complete the checkout process, the more likely it is they will abandon the cart before completing payment. According to research by Statista, 90% of shopping baskets on French ecommerce sites did not result in a completed order in the first quarter of 2022. One of the best ways to reduce friction in the payment flow is to offer the payment methods your customer wants. In 2022, this means digital wallets like PayPal, Apple Pay, Google Pay, and Bitcoin. In Europe, this can be a little complicated because the payment market is so fragmented. For example, while it is possible to pay for goods in America with Bitcoin and other cryptocurrency, it is not yet possible in Europe.  

To understand how digital wallets work in Europe, it’s important to understand the distinction between wallets that are device-based (Apple Pay, and PayPal OneTouch) and third-party wallets tied to the customer’s country of residence (iDEAL, Klarna, Bancontact, PostePay, Payconiq, Paylib, paydirekt). Apple Pay is used by shoppers all over Europe, for example, but only those with a Dutch bank account can use iDEAL.

What is a digital wallet? 

Digital wallets are used to store digital versions of physical bank cards and credit cards (Apple Pay) or work as dedicated apps that connect  directly to your bank or credit cards (PayPal, Paylib). They can also be used to store boarding passes, concert tickets, loyalty cards, coupons, and gift cards. 

Are there security benefits to using digital wallets?

The advantage of digital wallets over simply paying online with a credit card is that the entire transaction is tokenised, meaning sensitive data like the card number or the CVV number are never shared with the seller. To confirm a transaction, usually a piece of biometric information is needed, such as a fingerprint, face scan, iris scan, or voice match. Any potential fraud usually takes place on the human side of the technology, things like sharing passwords, buying from fraudulent sites, or not being careful with actual card details. With their financial information safely stored within a secure digital wallet, customers can complete the ecommerce checkout process without worrying about data breaches or cyberattacks that could leave their information vulnerable.

According to a JP Morgan report, the current value of the French ecommerce market is €103 billion with a projected growth through 2023 of 10%. To tap into this market, it makes sense to offer French customers the digital wallets options they use most often. Around 25% of all ecommerce transactions are done via digital wallets, which works out to about €25bn. First, let’s look at the France-specific option

Paylib 

Paylib is a cooperation between three major French banks: BNP Paribas, La Banque Postale and Société Générale and is the digital wallet version of Cartes Bancaires. First released in 2013, Paylib’s main features are that customers don’t need their physical card to hand to complete a purchase and they can feel safe knowing their details are never shared with the seller.  One important factor is that Paylib is currently only available for Android. Purchase authentication is done either via the Paylib app or an SMS message.

And now, to the device-based options.

PayPal

One out of every five digital wallet purchases in France is completed with PayPal, according to a JP Morgan study, which works out to about 5% of all ecommerce transactions. On mobile, PayPal counts for 53% of all transactions. 

Apple Pay & Google Pay

Apple Pay is Apple’s mobile payment and digital wallet service. It can be used to make payments in person, on iOS apps, and on the web. It’s only supported on Apple devices including the Apple Watch, iPhone, iPad, and Mac.

Google Pay is Google’s version of Apple Pay, allowing for online and in-person contactless payments using Android phones, tablets, or watches.

Since both of these platforms operate by hosting a customer’s existing cards rather than keeping a balance like PayPal, and nearly 80% of all online shopping in France is done with credit or debit card, offering Apple Pay and Google Pay can be valuable for your business.  

Accept digital payments with Mollie

Mollie makes it fast and easy to integrate PayPal and Apple Pay into your website. These options make digital payments quick and easy, and will help you gain and retain customers. 

When you sign up for one contract with Mollie, you can integrate Apple Pay and all other major payment methods into your online shop. Discover how we can help you grow your business no matter where in Europe your customers live.

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