A groundbreaking study from Juniper Research, a leading authority on emerging payments, anticipates a sharp increase in digital wallet transactions.
The forecast is that the total transaction value will skyrocket from $9tn in 2023 to $16tn in 2028. This demonstrates a substantial growth of 77%.
This trend is fuelled by expansion across both developed and emerging markets.
The rising acceptance of advanced services such as Buy Now Pay Later (BNPL) and microloans is significantly stimulating user engagement. The study underlines the importance of providers diversifying their appeal to users in an increasingly crowded digital wallet marketplace.
Digital wallets function as software-based systems that store user information including payment details, identity, loyalty, and ticketing information.
The study spotlights advanced services as a pivotal source of revenue growth for digital wallets. Services such as BNPL and microloans are enabling digital wallet providers to diversify their income streams. The increasing popularity of BNPL, particularly among younger consumers, is expected to attract more users and thereby generate additional revenue. This strategy is exemplified by Apple’s introduction of supplementary services, including Apple Pay Later.
Key Findings from the Juniper Research Report
- Rapid Growth in Digital Wallet Users: According to the report, the number of digital wallet users worldwide is set to exceed 5.4 billion by 2028, reflecting a remarkable 46% growth from 3.7 billion users in 2023. This growth is driven by the increasing demand for advanced financial services offered through digital wallets.
- Market Landscape Analysis: The report delves into the current state of the market, highlighting key trends such as virtual cards, and assessing various use cases for electronic wallet apps, including payment, ticketing, identity, and crypto.
- Strategic Recommendations: Key opportunities for mobile wallet providers are outlined in the report, along with recommendations on how these providers can capitalize on these opportunities. It also analyzes critical market trends, making it essential reading for digital wallet providers and mobile money services.
- Forecast Summary: The report forecasts significant growth in digital wallet transactions, with the total value projected to rise from $9 trillion in 2023 to over $16 trillion in 2028, a remarkable 77% increase. This growth is attributed to the adoption of advanced services like Buy Now Pay Later (BNPL), microloans, and personal financial management.
The study also determined that security advantages are a primary incentive for using digital wallets in eCommerce in developed markets. Many consumers prefer not to input their card information online. The issue is mitigated with digital wallets, where tokenisation enables card and other payment information to be securely used.
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