London, UK, 3rd August 2021, ZEXPRWIRE – Digital banking is the way of the future. Looking at the success of mobile payments being adopted to replace cash, it’s easy to see why this is happening in more countries each month. Online banking platforms will continue to gain popularity over physical banks as they have been doing for years now. It isn’t just a trend either—it’s a revolution.
What is digital banking? Digital banking as the name suggests is any kind of banking that uses technology to carry out transactions, rather than through physical means. This could be online or mobile apps, ATMs, and even social media platforms like Facebook Messenger (which incidentally has recently integrated peer-to-peer payments). The added benefit is that the customer experience can be tailored to your preferences, unlike a physical bank.
Why Is It Being Adopted Massively?
There are plenty of reasons behind this shift. To start with, it’s safe from fraud and other security breaches because all your funds will be stored in a “wallet” on your phone, tablet or computer. You will have complete control over your account using the login details you selected. The Blueprint Capital Analyst likes to call it a revolution because it allows so many people to bank from their homes, on the go, and with no need for cash. The process is faster, too.
It also allows for more convenience, as mobile payments are becoming the most popular method of payment in the world. It’s also great from a customer experience perspective—there is no need for you to be at the bank when transferring money between accounts or paying bills because it all happens online on your terms. And since people already have their phones on them all the time, it’s a no-brainer decision for banks to make. The ubiquity of smart devices is making it easier to transfer funds and access banking services than ever before. As more people get phones, this trend will continue and more banks will launch their own apps – a win-win for both parties.
Walgreens is an American based company that is one of the most famous stores in the US. It was founded in 1901 and has been providing services to customers since then at a reasonable price range. Currently, it claims to have over 8,175 locations worldwide, with 789 of those based in America alone. Moreover, it has more than 100 stores just across Chicago. The retail store has now taken the digital world by storm and has recently launched a mobile payment method called Walgreens Balance Rewards. It has been working for almost four months now but it is only on a pilot basis in stores that offer loyalty cards. This system will allow you to add your personal information—like through social media platforms like Facebook or Twitter – for you to use at the stores.
Walmart is the biggest retail store in the world, and one of the “Top 5” biggest companies on Earth. It is an American company that was founded by Sam Walton back in 1962 and has been providing services ever since. Currently, it claims to have over 10,000 locations worldwide, with 4500 based in America alone. Moreover, it has more than 800 stores just in Illinois. The retail store has been on the venture to explore the digital world and has recently launched a mobile payment method called Walmart Pay. It is working on all smart devices that are powered by android or iOS, and it can allow you to pay for anything using your phone’s camera.
The Next Move
Both Walgreens and Walmart have announced that they will be taking another step ahead in the world of digital payments by partnering with fintech companies because they wish to strengthen their relationship with their loyal customers by providing them with more ease. This is why both the retail giants have announced banking initiatives that will help them capture greater market share.
Walgren will be entering a partnership with Incomm Payments to make its bank accounts available throughout their 9000 stores and online. Walmart on the other hand has decided to team up with Ribbit Capital with the goal of coming up with its own fintech startup named Hazel. It is said that Hazel will be all about customer facilitation because it will be offering services like lending, digital payments, bank accounts and a lot more. Blueprint Analyst says that both the companies are rather non-traditional players for the financial sectors but they hold the potential to change what banking has been like since forever.
Our analyst says that these partnerships will also allow both retail giants to build strong customer relationships by providing them with what they want, which is how convenient their lives can be. It will surely introduce great competition among banks but that’s a positive thing as it has the potential to make banking digital more advanced by seeing new innovations.
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