1. Seamless payments: The role of in-app
wallets in ride-hailing
If you are a taxi fleet owner and providing ride-hailing services across
your city or nationwide, then this blog is for you.
You know, ride-hailing has become a massive industry. Services like
Uber, Lyft, and others popping up in cities across the globe are playing
a vital role in its growth.
As a ride-hailing services provider, the challenge you face first-hand
is that fumbling with cash and cards slows down the pickup time.
It further leads to forgotten fares. Your customers want a smooth ride
with easy payment options. That’s where in-app wallets come in.
It is embedded directly into the ride-hailing software. In it, your
customers can store their payment information, pay without entering
their payment details, and ensure a stress-free experience.
Most importantly, you will reduce processing time, fees, and
operational headaches. Keep reading to explore the role of in-app
wallets in ride-hailing platforms and how it is useful in retaining
customers.
The payment problem
Accepting payment should be easy, not another hassle for your
business. Yet most rideshare operators face payment problems. Check
out below the substantial drawbacks you may be facing with
traditional payment options. Plus, the revenue leakage and poor
customer experience.
2. Drawbacks of cash and credit cards:
Dealing with paper money and credit/debit cards costs your
ride-hailing business valuable time and money. Your drivers lose
productivity by doing all that he is not supposed to do - managing
payments, accounting, matching receipts, and more.
The credit card fees alone erase your 2-4% of revenues or even worse.
The bottom line is, that your drivers lose productivity and you lose
new trips, profit, and loyalty.
Revenue leakage and reconciliation headaches:
Without integrated digital payments, it becomes confusing for you to
match cash and card transactions for each ride. This inability results
in an easy slip of funds which means a revenue leak.
You then think of:
Where has your profit gone? Why the amount is not matching? Why
the earning is less? And more.
Poor customer experience hurts retention/growth:
3. Your passengers hate payment hassles. If you do not have a simple
payment option and your customers have to dig in for a card or exact
change, it will result in poor customer experience.
Your customers will switch to the service provider and will find your
alternative when they get a bad experience in paying.
Read More: Factors affecting driver behavior in the
ride-hailing business
What is in-app wallet?
In-app wallet is a type of digital wallet functionality that is built
directly into a mobile app with the aim of making digital payment
even easier. It allows users to easily store payment methods and make
purchases without leaving the app environment.
4. With ride-hailing apps specifically, an in-app wallet is an inbuilt
payment feature that allows your passengers to securely link a
payment method like a credit/debit card, mobile wallet, or bank
account. The user doesn’t have to enter their payment details each
time they take a trip.
The passenger can use this stored payment source for a seamless
one-click payment experience within the ride-hailing app for all trips
and transactions.
Role of in-app wallet in Ride-hailing
5. Ride-hailing is now powered by the push of a button. And payments
make that possible via seamless in-app wallet integration. Let's
examine the multifaceted role in-app payments play below.
Convenience and seamless payments
In-app wallets help you streamline your payment processes. It also
plays a vital role in eliminating the need for handling physical cash.
Furthermore, it allows you to enhance your user experience by offering
a simple one-click payment option.
For example, by simply topping up the in-app wallet, your passengers
can conveniently pay for the ride they took without worrying about
having exact changes.
6. Faster and more efficient transactions
Getting a card from the wallet, entering it in the software, verifying
the OTP, and then making the payment. It's a time-consuming and
slow payment process.
When you have an in-app wallet in your ride-hailing system, it
enables you to offer speedy and efficient payment options to your
passengers.
Remember, your users prefer a quick transaction. And it can be met
through the in-app wallet. It allows them to make the payment in just
a blink. Moreover, it also allows your drivers to confirm the payment
and complete the ride swiftly. Voila, it's a win-win for all!
Promotions and loyalty programs
Uber and Ola have an in-app wallet in their ride-hailing solution.
Using this feature, they can offer incentives such as cashback,
discounts, and loyalty points. This encourages your customers to use
your payment system more than others.
You can offer the same by having an in-app wallet in your white label
app. It also serves as a customer retention strategy which helps you
reward your loyal passengers for their continued engagement with
your ride-hailing service.
Security and fraud prevention
Tokenization and storing facility is what in-app wallet offers. The taxi
dispatch software with an in-app wallet in it, allows your users to
store their payment credentials.
It establishes another security parameter and reduces the exposure of
sensitive payment information. It ensures robust security measures to
prevent fraud in digital transactions.
7. For instance, by integrating an in-app wallet in your white label
software, you can provide a secure method for your passengers to
make safe transactions, and safeguard your passengers from potential
fraudulent activities.
Global expansion and payment options
Tying an in-app wallet to your vehicle dispatch software allows you to
expand into new regions quickly. You can set a standardized payment
method for global reach and offer your passengers their familiar
payment option.
No matter what country you offer your service, the in-app wallet
allows you to offer payment flexibility to your customers and helps you
remain compatible.
Having the in-app wallet in your software allows your users
worldwide to seamlessly access and utilize your ride-hailing service
easily, regardless of their payment methods.
Reduced dependency on cash
Handling cash can bring your drivers to robbery risks and make
tracing transactions difficult.
With an in-app wallet in your on-demand ride-hailing software
solution, you can encourage a cashless environment for both your
drivers and customers and reduce cash dependency.
You can allow your customers to pay online right from your
ride-hailing app. Passengers do not have to carry cash nor does your
driver have to think about managing cash or giving a chance to meet
the exact trip amount like $35.60 and return the rest from the $40.
It will result in safer and more traceable transactions. This not only
enhances your user safety and driver security but also promotes the
8. overall transition towards cashless transactions in the ride-hailing
ecosystem.
Transaction history and management
In-app wallets offer you, your drivers, and your customers a
user-friendly transaction tracking feature. It aids in budgeting and
expense management. Your passengers can log in to your ride-hailing
software and easily monitor their spending and manage their
ride-related finances efficiently.
Moreover, an in-app wallet brings more clarity to your financial
health of operations by making your verification, auditing, and
reporting easy.
So, you now have discovered the role of an in-app wallet in
ride-hailing. And you know how important it is to grow your
ride-hailing business. It’s not just making the payment method, but
also a core feature in your business growth.
Read More: Why ride-hailing startups must choose a
saas-based solution
Let us now see the difference you will see in your business with and
without an in-app wallet in managing your business with your
ride-haling software.
Comparison of ride-hailing apps with and
without in-app wallet
Here is a comparison table for you to easily with advantages and
disadvantages of an in-app wallet in ride-hailing to easily understand
what business benefit you get with it.
Category Without In-app Wallet With In-app Wallet
9. Payments
Your driver handles cash
and cards manually
Allows your customer to
make payment in one click
Transaction times Often exceed 60+ seconds
The transaction gets
completed in 5 seconds
Promotions capability Limited
You can offer
personalized discounts
and loyalty programs
Fraud risk Higher exposure
Enhanced security
protections
Fees
High credit card
processing fees
Lower digital
transaction fees
Revenue tracking
Hard to track revenue and
even individual ride
payments
Data is generated
automatically which
allows you to track
revenue with ease
Customer convenience
Requesting cash, waiting
for change, or repeating
card details irritate
your customers
With pre-saved details,
your customer can pay
with a single click. It
ensures a seamless
cashless experience
Operational insights
You get minimal
visibility into your
finances
Robust real-time
reporting and analytics
Competitive standing
Falls behind with
features your rivals
offer in the market
Gives you a key
differentiation based on
experience
Global expansion
Integrating various
regional bank rails and
foreign payment types
makes it difficult for
you to scale
You can easily integrate
diverse payment methods
and still keep the
interface unified. It
makes it easy for you to
scale globally
Future technology
enablement
The foundation is
constrained. It is
complex and expensive to
adopt new technology
The foundation is created
with a vision to connect
emerging technology
10. An in-app wallet helps you to optimize your costs, security,
automation and the end user experience. This unique capability sets
you apart from your competition.
Going “without” will cause you to lose customers and profit whereas
“with” will help you achieve your business goals.
Here is one of the leading ride-hailing software that carries a bunch
of advantages.
Benefits of YelowTaxi in-app wallet
Customizable platform - You can easily tailor special offers and
payment rules to meet your unique business goals.
Omnichannel wallet - Understand your customer behaviors
across all interactions to boost loyalty.
Security protections - Safeguard the sensitive data of your
passengers to prevent fraud and increase trust.
Operations analysis - Get access to the analytics feature and use
it to optimize your financial decisions.
Digital receipts - Eliminate paper receipt hassles. Replace it
with digital receipts, generate in seconds and save your drivers
time.
Loyalty programs - Reward your regular and loyal customers
by driving engagement with customized promotions and perks.
Lifetime value - Deliver value to your customers and drive
long-term profit with Increased repeated trip requests.
Subscriptions - Create flexible recurring payment packages to
retain users.
Performance tracking - You can keep track of your business
KPIs, have a 60-degree overview of your business, analyze the
11. data and make a data-driven strategy. Use this strategy to
make result-driven decisions and convert them into increased
numbers of customers and profits.
Conclusion
Ride-hailing is now fiercely competitive. You must maximize your
customer loyalty by removing all payment friction if you are willing to
thrive. The cumbersome card transactions and cash dependency will
only open the door for disruption for you and your passengers.
Integrated in-app wallets in your taxi cab dispatch platform are a
clear solution to overcome all payment-related problems. It allows you
to offer a lightning-fast cashless functionality with lower fees.
If you do not have a solution and planning to develop a ride-hailing
software - do consider adding an in-app wallet. If you are well aware
of the market and want to launch your app in 2 weeks by using a
white-label taxi dispatch system, then you should make sure the
solution has an in-app wallet.
You will only fall behind without this advanced feature. Be smart and
think about your bright future. In-app wallet adoption is no longer a
choice but a basic and important feature for your ride-hailing system.