Digital wallet spend to exceed $10 trillion: here’s when

The rising adoption of digital payments during the pandemic is expected to drive this significant 83% growth in spending

digital wallets

Digital wallet spend to exceed $10 trillion: here’s when. Source: pexels.com

According to Juniper Research, the total spend via digital wallets will exceed $10 trillion in 2025, up from $5.5 trillion in 2020.

Digital wallets, where payment details are stored and accessed via a single app, have proven themselves as being both convenient and secure during this difficult period, the report states.

The report identified that wallets are becoming increasingly capable of both contactless and remote payments. This way, in 2025, contactless and e-commerce payments will account for 50% of total wallet spend, from just under 36% in 2020 making these the high-priority areas where wallet providers need to maximize their merchant networks.

The report identified integration costs for multiple wallets as challenging for merchants, meaning that picking the right wallets to focus on is highly important.

Merchants must base their payment strategies around wallet acceptance in order to support a digitally-engaged addressable market, but must also judge the right wallets to target, or they will be lumbered with increased costs and limited benefits
Alexandria Sadler, research co-author 

The research also found that the grown use of contactless mobile payments during the pandemic, prompted by concerns around cash, has seeded greater wallet use across the payments’ ecosystem. The report forecasts that contactless adoption will rise, with over 34% of mobile handsets set to use contactless payments in 2025, up from 11% in 2020. This growth means integrating contactless-enabled wallets within checkout processes will be critical to meeting changing user expectations.

We’ve reported that WorldRemit enabled mobile wallet transfers across Pacific Islands.

SEE ALSO:

Categories: All materials Fintech News