The Demand For Mobile Wallets Are On An Upwards Trend
With each passing day, the mobile wallet industry is expected to rise significantly. Due to increased internet penetration in numerous industries around the world, digital wallets and mobile banking have acquired a lot of traction in recent years. Banks and other financial institutions are launching their own mobile wallets nowadays in order to improve user experience and expand their customer base. They’re going after the millennial demographic since they’re the ones who utilize digital banking the most.
Young people all around the world prefer to use digital wallets instead of carrying actual wallets since they can access their money more easily and safely.
According to research, the total amount of mobile wallet transactions in 2018 was $4,296 billion. By 2022, this figure is expected to reach a staggering $13,979 billion US dollars.
- With the introduction of mobile banking transactions, the banking industry in developed regions such as North America and Europe has seen a massive upheaval. As a result of the lockdown limitations enforced by many governments throughout the world during the COVID-19 pandemic, people have become more reliant on these internet platforms to make their daily purchases and conduct other transactions.
- With enticing cashback offers, mobile wallet providers are affecting payment procedures and the way customers seek a specific product or service. According to a survey by Global Market Insights, contactless payments using mobile wallets have climbed to more than 69 percent in the United States alone since January 2020.
- The global mobile wallet market size is on the rise, thanks to a rapid increase in demand for mobile wallets that make it easier for clients to perform transactions.
- Europe is renowned for having one of the world’s most advanced digital banking systems. Customers in the region benefit from state-of-the-art technology used by banks to make regular banking more convenient.
- The United Kingdom is one of the numerous European countries offering digital banking services, and it is expected to increase rapidly by 2026.
- Because of the security concerns associated with performing online cash transactions, the closed mobile wallet industry in North America is expected to hit $80 billion by 2026.
- Consumer demand for Near Field Communication (NFC) technology will be significant in the Asia Pacific, with the technology expected to expand at a rate of more than 20% by 2026.
A quick view of the upcoming trends of mobile wallet apps:
- To unlock the device or log in to an e-wallet, biometric security features on smart mobile devices with iOS and Android systems enable fingerprint scanning, voice assistant, and an AI-based face scanner, ensuring the protection of mobile wallet payments and safety against fraud and theft
- Machine learning is being used by mobile wallet providers to improve fraud protection and identify fraudulent online transactions and payments. Banks are integrating chatbots (AI-based software) with their mobile banking applications to give customer help 24 hours a day, seven days a week.
- Smart voice wallet payments, which allow mobile wallet users to check account balances, make transfers, and pay bills, are on the rise as a result of personalization. Voice is a reliable way for fintech companies to obtain vital data and information about consumer preferences.
- In comparison to physical servers, cloud-based mobile payments turn cellphones into digital wallets that can be used at any time, on any device, and anywhere. They also take much less time.
- There are a plethora of smartphone apps available that support multiple cryptocurrencies. Cryptocurrencies will result in more secure transactions, and firms that use this technology are projected to fare better in the long run than those that do not.
- Customers’ data is encrypted when they use mobile wallets to make purchases at a Point of Sale (PoS) or an NFC integrated payment device, therefore NFC will see a significant increase in the coming days.
In the following years, more powerful mobile wallet technologies will develop, with the potential to completely eliminate the use of paper money. This platform prioritizes security, scalability, and omnichannel capabilities, as well as a simplified e-KYC process for wallet activation and simple transactions with only a few clicks.
Do you intend to create a mobile wallet app to capitalize on the growing trend of mobile banking? Zoondia, a leading application development firm with over a decade of experience, can help you succeed with our turnkey solutions and enter the niche of mobile banking wallets with a flawlessly operating, unique fintech product.
Get in touch with our team to get started. You could also drop me a mail at email@example.com