Digital wallets in a nutshell

A digital wallet is a system that stores users’ payment information and passwords for numerous payment methods and websites. The digital wallets market has expanded a lot in the last five years, due to the surge of mobile payments, smartphone penetration, shift in consumer behaviour, and sometimes regulation.

Source: Pexels

Asia Pacific, Europe, LATAM, and the US (to) love digital wallets

By the end of 2019, nearly 2.1 billion consumers worldwide will be using a mobile wallet to make a payment or send money, up by nearly 30% on the 1.6 billion recorded at the end of 2017, according to Juniper Research. Out of these, more than two-thirds of mobile wallet users live in Asia-Pacific, with China alone contributing close to 50%.

Source: Conekta

The business model of digital wallets

No one can deny that digital wallets have made cashless transactions extremely convenient and hassle-free for consumers. But how exactly do the digital wallet companies earn their profit, especially since wallets like Paytm and MobiKwik, in India, are offering up to 50% to 100% cashback?

Digital wallets — the road ahead

Overall, if we look at the successful mobile wallets, some factors that play a major role are:

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The Paypers

The Paypers

The leading independent source of news and analysis for professionals in the global payment community.