4 Digital Wallet Predictions That Will Come Out True in 2023
Digital Wallet Predictions Come Out True in 2023
It isn’t a secret that Digital Wallet adoption is at an all-time high. Globally the rate at which Digital Wallets were being adopted in 2020 was 55%. The same is expected to shoot up to 75% by 2025. The United States recorded a Digital Wallet adoption rate of 23% this year. The pandemic has further catalyzed contactless payments among millennials worldwide.
List the 4 most important changes we will witness in 2023 related to digital wallets.
Post-epidemic, digital wallets, a consumer favorite, surged to prominence, riding on the upward trend witnessed in recent years. As a result, customers who want speed and ease become more than simply another payment option.
Simultaneously, 1.35 billion mobile money accounts were registered worldwide, which is 18.1% higher than the previous year, and over 1.5 million interpersonal transactions took place per hour. There is strong debate going on digital wallets vs crypto wallets, their usage is increasing considerably.
Forecasts indicate that the rise of mobile money and digital payments will continue. With the increase in their use, demand for digital wallet development companies is also growing rapidly. Emerging markets will be crucial to this recovery. It is astounding to think that new technology may make it easier for consumers to access traditional financial services.
Half of the world’s population will use mobile wallets by 2025, predicts Boku’s 2021 study.
1. Integration With Wearable Technology/IoT
Many experiments have already succeeded in this. The scope of innovation in this space is immense. Many brands have a keen eye on how this unfolds. For e.g., Imagine you are wearing a smart band (Fit Bit). What if you were never required to pick up your smartphone to make a payment? The same is applicable to your smart car and other smart devices that work independently without latching on to your smartphone.
2. International Payments
Top Digital Wallet Companies are exploring collaborations with money exchanges. Many countries worldwide are currently restricting wallet payments overseas. However effective integration with the most popular money exchanges like Weston Union, PayPal, etc. is expected to offer seamless international payments worldwide.
This strategic integration between your digital wallet app and money exchanges worldwide can be a huge step towards a better consumer experience. Many working professionals worldwide make transfers to their families in their home countries. If this can happen with the ease of a wallet in the future people might schedule transfer funds at a time the conversion rate is good.
3. Multi-Currency Wallets
Best digital wallet companies around the globe are working to allow multi-currency payments. This is yet another exciting feature that can help many businesses, individuals, freelancers, etc. who work in global teams.
E.g., Suppose you are a fintech founder having global teams in the USA, India, and China. Suppose you have a multi-currency wallet in the future. Your wallet can make and accept payments in USD, INR, and Chinese Renminbi. Now you receive an international payment from India. You can remit the amount in INR to your employee as his salary. This way you don’t pay conversion charges.
Interesting. Isn’t it?
4. Crypto Currency Integrations
Rumors are doing the rounds that many companies are trying to integrate blockchain technology to enable seamless payments through cryptocurrencies. To conclude, the world is soon becoming a unified global economy. Fintech app development companies around the globe are making applications that help their users make seamless payments around the globe.
The integration of your wallet with crypto giants, wearable technologies, and money exchange will be a great fintech game change to look out for in 2023. Since Fintech is now becoming a rather cluttered space with many giants like Google Pay and fresh start-ups giving cutthroat competition to their peers consumer experience will be the key to success for Fintech businesses in 2023.
The world is looking up to fintech Solutions innovation that empowers digital wallets to be the only mode of sending and receiving payments. Did I miss a feature you want in your digital wallet? Write us back in the comments. We will cover it in our upcoming posts.
What is Next For Digital Wallets in 2024?
One of the financial industry’s most amazing discoveries is still digital wallets. Digital wallets surge in popularity, offering quick, paperless payment—fintech solutions transforming how users transact. Through their smartphone app, users may save money that they can utilize for both online and offline transactions.
As digital wallets continue to gain traction, more companies are joining the market and providing unique features and advantages. Learn about the six themes influencing digital wallets and how they will impact our financial path in 2023. Continue reading!
How is Digital Wallet in 2024?
Digital wallet use will double by 2025, reaching $5.8 trillion in 2021. AI advancements enhance services, attracting more users, especially the younger demographic. Established players (Apple Pay, Google Pay, AliPay) thrive, and newcomers like Highen Fintech join the fintech rise. Growth is foreseeable. Even while every eWallet is unique, they all have certain commonalities, such as:
- Simple login and signup
- tiers of defense
- Give prizes to customers
- Integration of credit or debit cards
- Digital money storage
These days, many eCommerce platforms and online/offline retailers accept payments using digital wallets. To further enlighten viewers, they even offer explanatory movies. This is a means of enhancing their offerings and remaining applicable in the digital world.
6 Trends of Digital Wallets in 2024
In 2023, digital wallets will compete through innovation. Key trends: Biometric Advances Contactless Evolution.
1. Digital Currency Wallets
In a digital culture, cryptocurrencies have created trends despite their extreme volatility. The usage of Bitcoin, Ethereum, and other cryptocurrencies by individuals and companies for investing and transacting is growing.
With increased popularity comes a growing number of cryptocurrency wallets on the market. They help consumers make secure investments and transactions. The number of people using Bitcoin wallets increased dramatically from 6.7 million in Q1 2016 to 34.6 million in Q1 2019.
2. Payment for Speakers and Smart Voice
Ever before Alexa, Siri, and Cortana became commonplace, there have been conversations on their possible application in financial transaction assistance: 126 million US users (50%) monthly. Amazon pioneered voice-activated smart wallets before Google and Apple. Voice assistants have come a long way in helping people transfer and receive money and make transactions.
Digital wallets will probably continue to increase as smart speakers become more and more popular for purchasing purposes. People are more comfortable using voice instructions when making smaller purchases, like buying groceries, paying bills, or utilizing public transit.
3. Authentication via Biometrics
Users’ digital wallet assets can benefit from additional levels of safety through biometric authentication. Biometric identification is a common feature of digital wallets that increases security and deters online fraud.
Digital wallets are vulnerable to data theft and misuse if they don’t have an advanced security solution. Verification using biometrics.
Users require personal information, for instance, to make product purchases or hotel reservations. Typical methods for biometric validations include:
- Scan of a fingerprint
- palm reading
- Recognition of retinas
- facial recognition.
4. Digital Play Cards
It’s expected that the primary feature of the digital wallet will include virtual cards. There are two possible variations. Digital wallet users add debit/credit cards or virtual cards. To use virtual cards, load money into them beforehand. It functions similarly to real cards, except all transactions are via mobile devices. A 16-digit card number, CCV security code, and expiration date must also be entered.
5. Order Now, Pay Later
The buy-now-pay-later (BNPL) service is one particular digital wallet trend that we anticipate will continue to grow in 2023. According to a survey, one of the reasons BNPL is becoming even more well-liked is inflation.
Separate research also projects that 300 billion transactions will come from the BNPL. By 2026, the figure is probably going to reach 576 billion. Furthermore, the largest expense for BNPL transactions is groceries.
BNPL provides a fresh way to shop for goods. Consumers who wish to purchase goods can do so by making installment payments. Even better, there are often alternatives for the payment time and no interest associated with this installment.
6. Social Trade
Even now, social media sets trends. Social media networks with millions of active members constantly launch new services like shoppable posts. Social media is essential for business development, and the thoughtful scheduling of focused social media updates may substantially impact your company’s success. Many platforms are integrating digital wallets to offer the best possible buying experience.
Customers may simply buy things anytime by connecting their digital wallet account to social media. 25% of users shop on social media networks. Social media trend boosts sales by $1.298 billion.
In What Ways Does a Digital Wallet Operate?
Access a virtual wallet from any mobile device. Enjoy multiple financial transactions without needing a bank account—a major advantage.
The following are some uses for digital wallets:
- Money transfers.
- Getting paid (via a bank transfer or another digital wallet).
- Use credit or debit cards to make purchases both offline and online.
- Paying for services and invoices.
- Gathering up sales.
There are now three varieties of digital wallets available:
- Closed-loop wallets enable reloading a spending account linked to certain retailers by connecting them to a credit or debit card. They are used to pay for goods and services online and in physical stores across several platforms. These wallets include GrabPay, AliPay, and AmazonPay.
- Open-loop wallets enable payments using NFC-capable terminals and connect the user’s credit and debit cards to their smartphone. Apple Pay, Google Pay, and PayPal are some of the most widely used options.
- Virtual money transfers and purchases between accounts inside the same wallet network are possible with semi-closed-loop wallets (typically regional in scope). Paytm and Mobikwik are located here.
In conclusion, the evolving landscape of digital wallets vs crypto wallets in 2024 promises exciting developments and transformations in the way we manage and utilize our financial assets. As we’ve explored in this discussion, four key predictions highlight the potential future of these technologies. The year 2023 is set to witness increased adoption and integration of digital wallets into our everyday lives, thanks to their convenience, security, and user-friendly interfaces.
Additionally, the rise of cryptocurrency wallets is expected to continue as the crypto market matures and gains mainstream acceptance, providing individuals with greater control over their digital assets. Furthermore, the emergence of decentralized finance (DeFi) and non-fungible tokens (NFTs) will shape the digital wallet landscape, offering users new ways to manage and invest their funds. Lastly, as regulations and security measures improve, both digital and crypto wallets are likely to become more secure and reliable for users. With these predictions in mind, it is evident that 2023 holds great promise for the digital wallet ecosystem, offering users a diverse range of opportunities and innovations to enhance their financial experiences.
In a digitally connected world, digital wallets are here to stay and will help us with our financial journey. A few of the tendencies above are holdovers from prior years. To offer safe and easy transactions, they can still require improvement. Talk to a Fintech app development company to get your digital wallet built with experts and with full security.
You might not need to bring cash or physical cards on your travels in 2023 and beyond. It takes a few clicks to make online and offline payments with digital wallets, which are accessible through smartphones and other mobile devices.