By Paul Skeldon

André Stoorvogel, Director, Product Marketing – Payments, Rambus, takes a look at how digital wallets are not only going to shake things up for payments, but for retail in general

The retail landscape is evolving rapidly as emerging technologies and trends are changing expectations of the in-store experience.

As retailers look to find their place in this brave new world, many are now seeing payments as an opportunity.

With 92% of US retailers expecting to maintain or increase investment in payments over the next 12-18 months, we explore the five major reasons why digital wallets makes sense, according to Ovum.

  1. Minimize transaction fees

When processing debit and credit card transactions, retailers are subjected to ‘transaction fees’. These fees can be high, particularly for larger retailers, so working to reduce them makes commercial sense.

One potential strategy is to introduce a store-branded, closed-loop payment card.

To see any reductions in interchange costs, however, consumers actually have to use these store card. On top of this, retailers must factor in the costs of manufacturing and issuing of physical cards.

A store card within the digital wallet can reduce costs by making less transactions subject to fees. The retailer can also push in-app discounts when using the store card to encourage adoption, driving brand engagement, recognition and loyalty. Also, provisioning the card digitally removes the costs of manufacturing and issuing physical store cards.

  1. Enhance experience and engagement

Despite the rise of the ecommerce giants, 75% of all retail sales are still predicted to take place in-store by 2025, says the New York Times. The way these sales are conducted, however, will be profoundly different.

Part of the ongoing primacy of…