The global digital payments ecosystem has changed dramatically, with e-wallets dominating. Due to their convenience, security, and use, these digital payment platforms are growing in popularity.
Here are 5 key statistics about the rise of worldwide digital payments, notably e-wallets.
Rapid Digital Payments Growth
Global digital payments growth has been tremendous. Several factors have pushed digital transactions. First, businesses and individuals favour digital payments due to their convenience. Smartphone and other device digital wallets enable users pay and manage their finances without cash or cards. This prevents loss and theft by eliminating cash handling.
Second, e-wallet security measures have increased trust in digital payment systems. Digital payments are secure with multi-factor authentication, encryption, and real-time transaction monitoring. Customers are growing comfortable using these platforms for financial transactions.
Thirdly, increased smartphone and internet use has made digital payments prosper. Technology allows people worldwide to make rapid payments for internet purchases, restaurant bills, and international family transfers.
Since my previous knowledge update in September 2021, digital payments have grown significantly, and there’s every reason to suppose it’s persisted, if not increased. Digital payments are changing the global financial landscape as businesses and individuals realise their benefits.
E-wallets are mobile-focused
Mobile-centricity defines e-wallets. Smartphones and other mobile devices are the main target for these digital wallets. Users can download e-wallet apps, link bank accounts or credit cards, and start paying digitally.
A mobile-centric approach has many benefits:
Convenience: E-wallets are always available with a smartphone. This allows you to access your digital wallet and make payments anytime, anywhere.
Mobile payments are faster than traditional ones: To make a transaction, tap your smartphone or scan a QR code. No need to swipe cards or count cash.
E-wallets often integrate with other mobile services: E-wallets can be used to order food, arrange rides, and make in-app purchases in mobile apps.
Merchants worldwide accept PayPal, Apple Pay, Google Pay, and Alipay, which are household names. This mobile-centric approach fits current consumers’ busy lifestyles and has helped spread digital payments.
Contactless Payments Rise
Contactless payments have becoming widespread, and e-wallets are leading the way. Contactless payments use a digital wallet or contactless card instead of cash or a card. Tap a suitable payment terminal with a smartphone or card to complete the transaction.
The COVID-19 outbreak accelerated contactless payments. Contactless transactions avoid physical interaction with payment terminals and currency, which consumers and retailers appreciated for hygiene. Several e-wallet providers offered promos and incentives to use contactless payments.
This trend is projected to continue as customers prefer contactless payments for their convenience and safety. Advanced near-field communication (NFC) technology makes using e-wallets for contactless purchases increasingly easier.
Global competition intense
Tech giants and startups compete in the e-wallet sector. This rivalry has spurred innovation and better consumer services. Some significant players and their contributions:
PayPal: One of the first and most popular digital payment networks, PayPal now accepts online, in-store, and mobile payments. Due to its acquisition of Venmo, younger users prefer it for peer-to-peer transactions.
Square, created by Twitter CEO Jack Dorsey, offers payment solutions like the Cash App. Square’s ecosystem includes POS systems and card readers, making it a complete option for businesses.
Alipay, operated by Ant Group, dominates China and has expanded overseas. Alipay offers investments, insurance, and a digital yuan wallet.
Apple Pay: Apple’s digital wallet is extensively embedded into its ecosystem, allowing Apple device payments. Security and privacy have made Apple Pay popular among iPhone users.
Google Pay is a comparable mobile payment app for Android. It blends loyalty programmes and prizes to improve user experience.
Beyond these global players, numerous countries have developed their own e-wallet systems. India’s Unified Payments Interface (UPI) is revolutionising digital payments. This variety affords consumers and businesses many digital payment possibilities.
Financial Inclusion Promotion
In areas without traditional banking infrastructure, e-wallets have helped promote financial inclusion. One of the biggest social effects of digital payments is this.
Many people around the world lack access to standard financial services. This can be due to remoteness, lack of documents, or exorbitant bank account fees. E-wallets allow people to use financial services without a bank account.
Here are some examples of how e-wallets encourage financial inclusion:
Low Entry Barrier: E-wallet accounts are easy to open and require fewer papers than bank accounts. This expands its audience.
Digital Transactions: E-wallets enable electronic payments, purchases, and bill payments. This decreases cash handling in areas with poor banking infrastructure.
Credit: Some: e-wallet companies provide microloans and credit based on transaction history. This can save consumers and small businesses without traditional credit.
Read More: Behind the Buy Button: 7 Noteworthy Features of Online Payment Gateways
