The Rise In Global Popularity Of Digital Wallets

It is predicted that in 2023 there will be around 1.31 billion mobile transaction users worldwide (compared to 950 million in 2019). Year after year popularity of digital wallets continues to increase and millions of users switch from regular payment options to digital ones.

Digital wallets are virtual accounts where you can store information on credit/debit cards, as well as loyalty and e-wallets. These accounts can be opened on smartphones, tablets, smartwatches, and other mobile devices. Digital wallets allow making purchases both online and offline, withdraw money from ATMs, and send funds to others in a quick and easy way.

In 2020 the expected volume of mobile payments is $500 billion which makes this market extremely promising and fast-growing. In this article, we’ll explore the main reasons why digital wallets are so popular.

Safety, convenience, and flexibility

It is difficult to argue that PayPal is one of the most popular payment methods at the moment. You have probably heard of the indisputable advantages of using PayPal for gambling transactions or shopping on eBay. However, more and more users switch to digital wallets which allow keeping multiple cards in one place.

The main benefits of these wallets are safety, flexibility, and comfort of use. First of all, they can boast outstanding security measures. Users can lock a lost phone or confirm a transaction via Touch ID (biometric authentication). Some wallet providers may even require a selfie to prove that it was you who requested the purchase.

Such security measures make it more difficult to hack a digital wallet. What happens when you lose a physical wallet? Everything inside is also lost! With a virtual wallet, nothing like that happens because you just need to lock the card if it is stolen.

Convenience is also an important feature because with a digital wallet you don’t have to carry around lots of credit, debit, and loyalty cards. Your smartphone or other device stores all the cards in one place.

Additional options

Apart from security and comfort, digital wallets can boast a wide range of extra features available to users. But first, let’s discuss the difference between single- and multi-purpose wallets.

Single-purpose, as you get from the title, is a branded application that works for one use. For example, it’s a store app with gift cards and loyalty programs, or a devoted credit card app.

Multi-purpose wallets give users maximum freedom and allow storing multiple credit and debit cards, loyalty and gift cards, as well as other accounts. These wallets act as physical ones that can store multiple cards and details.

Thus, owners of multi-purpose digital wallets can keep any payment information and gather all the data in one place. When you need to make a purchase or transaction, just pick the necessary card right from the phone or smartwatch.

Considering how dense and crowded the market is, developers of digital wallets regularly add new features and options to engage the audience and occupy leading positions in the industry.

Shopping on the go

Mobile shopping is extremely popular and according to Big Commerce, almost 95% of US citizens shop on the Internet at least once per year. And it is not a secret that online shopping has significantly contributed to the popularity of digital wallets. Just imagine, they are already as popular as PayPal!

To make a purchase from a mobile device, users don’t have to go and take out a physical wallet, type in card details, and then confirm a transaction via smartphone. Digital payment options are integrated into the phone or other wearable device and you can make transactions in a matter of clicks. Even if you are on the go!

The rise of digital wallets

It is obvious that virtual wallets, especially multipurpose ones, are here to stay. And large companies and developers are investing in creating platforms for mobile payments. Apple, for example, gives users an attractive cashback for switching to a digital Apple Card instead of a physical one.

More and more banks, IT companies, and startups create digital wallets in order to attract more customers. And we can’t say that we don’t like it! Mobile wallets are safe, fast, and convenient. And we are sure that this technology will continue to evolve.