Conventional cash is continuing to fall according to new research that highlights the increasing popularity of digital wallets and mobile payments.
According to a new study by Juniper Research the number of unique digital wallet users is now predicted to exceed 4.4 billion around the globe by 2025. Compared to 2.6 billion people making use of digital wallets in 2020 this represents a 70% growth, with consumers opting to use mobile payments for their transactions.
The latest research underlines the need for retail and e-commerce outlets to be better prepared for the take-up of mobile wallets. Merchants are being encouraged to ensure they have robust mobile checkout processes in place, including the latest point of sale terminals that are compatible with mobile wallets.
Alongside their more flexible checkout options businesses will also need to ensure that they have the correct mobile wallet integrations, with security to match.
The report found that Western markets including the US and UK are lagging behind China and India when it comes to the adoption of mobile wallets. Indeed, China and India are expected to account for 69% of digital wallet use by the year 2025.
However, the study also revealed that QR code payments are predicted to account for 40% of all digital wallet transactions around the world by 2025. This is compared to 47% recorded in 2020.
While QR codes are very convenient for making mobile payments, the evolution of card acceptance via NFC-enabled smartphones will make spending with a mobile device even more straightforward as more merchants accept digital wallet technology.
Research co-author Nick Maynard explains: “In developed markets, mobile wallets facilitate card payments, but in emerging markets, wallets in places have bypassed cards entirely. Wallet providers in developed markets need to focus on building acceptance and analytics features, in order to boost their appeal in a card-centric environment.”