The Rise of Mobile Wallets Technology
Given the sudden uprise of smartphone users worldwide including the small towns and villages, organizations and businesses see this as a big opportunity to serve these untapped areas. Back from being a new kid in the town to the fastest growth opportunity, the global FinTech industry has gone through a major transformation and changed the way consumers used to behave then and now. From keeping coins and twenties to going fully cashless is the power of Mobile Wallets Technology!
Gone are the days when consumers used to visit their bank branches for minimal tasks like transferring money, updating their passbooks, or to check on their FD’s. All this sounds like mammoth age struggles- such are the innovations of financial sectors and the way they have been rigorously streamlining things even further. We ask HOW? Through digital wallets. Digital wallets are not a new phenomenon, but they are surging the markets through their popularity and how steadily they have been becoming one of the widely preferred payment systems.
Every year, the business of Mobile Wallets Application Services is seeing a growth of 2X. This is a significant increase in the number of people who like to use their credit cards, debit cards, and loyalty cards, fed in their smartphones to have access to a quick and flexible payment option.
Factors behind the Rise of Digital Wallets
The payment gateway market was valued at USD 17.2 billion in 2019, and it is expected to reach USD 42.9 billion by 2025, at a CAGR of 16.43%, over the forecast period (2020 – 2025). If that doesn’t convince you, we have noted down a list of reasons that analyses the growing global potential of digital and mobile wallets.
Rise in Awareness
Just like any disruptive technology, Digital Wallets have been experiencing their share of criticism and skepticism that has been surrounded due to irrational fears of the user’s security and feasibility. Still, fighting with all the odds, digital wallets have continued to gain attention from like-minded users. With leading companies, such as Apple, Google, and Alibaba, launching their digital wallets, the industry has seen a surge in the attention given to these companies. According to studies, awareness regarding digital and mobile wallets has risen 3X in recent times, across all demographics. And as we speak about adoption, there must be someone at your home buying online stuff using their mobile wallets.
The younger demographic shows the highest amount of interest due to their enhanced capability to adopt and customize technological solutions as per their needs if compared to the older side of the demographics. When surveyed about the usage of Mobile Wallets Services, half of the 18-34 years of age had Mobile Wallets in their phones. The other remaining half had an overwhelming majority interest in the idea of having a digital wallet.
With 44% of users who use smartphones having a digital wallet, whereas almost 30% were intrigued by the idea of having a Digital Wallet and becoming a prospect of using one in the coming times!
Even the senior citizens of the age group of 55-64 feel at ease in using the mobile wallets and have even started using its end-to-end services daily. It’s safe to say that the irrevocable benefits levied by the digital wallets have secluded the age restrictions and the awareness is only going to rise.
Faster Transaction Time
When we speak about the technicality of the payment done through a debit/credit card, it usually takes roughly 15 seconds to complete a transaction, but with mobile wallets at our disposal, it hardly takes 5 seconds, which is 1/3rd of the time taken by a card to process a payment. Also, there is no requirement of carrying an extra physical device to make a payment. All you need is your charged smartphone and make payment anywhere at any given time.
Mobile Wallets Bonus Programs
With the availability of leading services like Apple Pay, PayPal, Venmo, Google Pay, Paytm, and more, the rising competition between the mobile payment services companies has become more fierce than before. To combat the competition, companies even Apple and Google have started offering loyalty programs like transaction rewards and bonuses, add-on coupons, and lucky draws, all just to keep the customers from using any other mobile wallet services!
Feasibility Right In Your Hands
With Digital Wallets, eliminate the barriers that prolong the “checkout” process when shopping online and offline, which saves time for not only the user but also the seller. Many times users abandon their shopping carts as it takes a longer time in the “checkout” process. But with Digital Wallets the work gets done easily, helping out the eCommerce and retail companies in dealing with the cart abandonment. Hence, it’s no more a secret that digital payment checkouts have helped businesses in increasing conversion rates.
Customers and technology experts have been critical about the payment security that is available on mobile payments. A maximum of Americans has cited the issue of mobile payment security and stand in unison while doubting the conventional methods of mobile payment systems. But the leading companies like Apple, Google, Venmo, Paytm, etc have equipped their digital wallets with a list of security checkpoints that ensure proper authorization before a consumer is allowed to confirm payments.
Most digital wallets are laced with a necessary biometric authentication which provides an enhanced level of security in case a phone is lost or stolen. Some wallet providers even require a selfie for greater safety.
Rise of Mobile Commerce
The essence of mobile wallets is manufactured as a means to streamline the checkout process after buying something over your smartphone. As mobile commerce grew into an industry in itself, there was an overwhelming need for a more streamlined, more feasible mode of payment. Conventional payment techniques were not only slow and cumbersome but also presented several risks. The demand for a more streamlined payment option was a dominant factor in fuelling the research in digital and mobile wallets.
Provides More Value
Everybody is focused on value creation and value derivation and that’s the reason that has led to the massive popularity with all sorts of demographics worldwide. Digital wallets are equipped to store all information related to the user’s transactions, provide updates, and offer products that lead to a rewards program. Value is the result and has been an influential factor in consumer decision-making, and by providing extraordinary value, digital wallet services have ruled the decision in their favor.
The Future is Digital & the same stands true for digital and mobile wallets. As more sellers and companies incorporate digital wallets as their payment options, the more advantage they leverage, making digital wallets the primary mode of systems.
The Mobile Wallet App Development plays a vital role in the popularity of these wallets. The UI/UX, the adaptable technology, and the app’s security are significant in making the mobile wallets adapt to the various demographics.
Have any unique ideas for such Mobile Wallet Application? Schedule a consultation to leverage our App Development Services at email@example.com