Since the onset of the Covid-19 outbreak, the use of mobile wallets has increased dramatically, and a report conducted by Merchant Machine forecasts that the trend will continue.
According to the experts, overall revenue associated with the mobile wallet applications has tripled since 2015 and is predicted to reach $1,639.5 trillion by 2022.
According to Merchant Machine’s survey, “the safety, security, and efficiency of e-wallets, as well as the prominence of smartphones and growing digitalization of society, were among the key reasons for the popularity of this technique.” The study also highlights the top mobile payment systems through 2022.
With 650 million users, Alipay is possibly the most common digital wallet, with WeChat following closely with 550 million users.
Following Alipay and Wechat, the most popular payment options were Apple Pay (507 million), Google Pay (421 million), and Paypal (377M).
While debit cards, credit cards, cash on delivery, and bank transfers have all declined in popularity, purchase now, pay later plans have risen in tandem with the growth of mobile wallets.
“The only mode of payment that will see a rising popularity among users, aside from mobile wallets, purchases now, pay later programs like Klarna or Clearpay,” the report states.
“The ability to split the expense into monthly installments makes these techniques, especially popular among Generation Z and Millennial consumers.”
China has the highest fraction of virtual or tap-to-pay contactless payments in terms of mobile wallet adoption. United States, Denmark, South Korea, India, Sweden, and Canada came in second and third, respectively.
“The widespread use of contactless payments in China is due to society’s embrace of technology in many aspects of life,” the researchers add.
As stated by the Merchant Machine’s analysis, the rise will continue, and by 2024, 4.4 billion people, or about half of the world’s population, will be using mobile wallet apps.
The conclusions of the survey match with Gartner’s research, which predicts that by 2024, 20% of firms and significant corporate organizations will adopt digital currencies for payments.
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