How Digital Wallets are Replacing the Physical Wallets

Posted :November 22, 2017

Use of Mobile Digital Wallets Set to Expand Worldwide

Mobile Digital Wallet is no longer a buzzword or a futuristic concept. What began as a novel idea in the late 90’s has now become a mature and viable financial vehicle that is increasingly getting indispensable. With the proliferation of smartphones, digital wallets have followed an enviable growth trajectory. Here are some interesting statistics on digital wallets. As expected, the millennials lead the consumer pack with 34% closely followed by generation X with 31%. The most common use remains online bill pay at 19% followed by online or in-app purchase at 16%. While 78% of consumers are aware of digital wallets, only 32% have used it. This shows the tremendous potential for further penetration into this market space. One of the main reasons for not using digital wallet (51%) is security concern. Also, 21% consumers admit that they don’t know enough about this technology to make a decision. Apple Pay sits at the top of the pack in customer satisfaction at a whopping 66%. The projected global mobile payment transactions in 2017 are set to increase by 60% to $721 billion. The top 5 countries where consumers are ready to ditch their wallet payments in favor of mobile wallets are South Korea (63%), India (60%), China (54%), South Africa (53%) and Belgium (51%). The United States curiously lags far behind and is ranked 20th with just 31% consumers preferring to use digital wallet. Reference: Statistic Brain, Sept. 6, 2016, Mobile Digital Wallet Payment Statistics)