The transaction value of the global digital wallet industry is expected to witness a compound annual growth rate of 19.67% to grow to US$17.11 trillion by 2029, from US$6.97 trillion in 2024.
A digital wallet stores credit card details on a mobile device. It is convenient to use a digital wallet to pay for things at the store. Through a digital wallet, people can also transfer money from their bank account, pay bills such as electricity or water, book movie tickets, travel reservations, mobile recharges, etc. The demand for payment systems built around newer technologies like virtual currency in recent years seems high. The adoption of mobile payment systems in developing countries is thus contributing to the intensification of a profound consumer revolution.
Moreover, the ability to know customers in real time is one of the technological innovations that contribute to the rise in mobile wallet adoption. Since it can retrieve usernames and information instantly, more retailers are adopting the technology at a faster rate because it makes their jobs easier, which, in turn, fosters market growth.
Moreover, smartphones are becoming regarded as indispensable instruments for day-to-day activities, such as banking. Further, the market growth is characterized by the increased use of digital payment modes that offer more convenience to their users. Moreover, to continue their essentiality in the digital age, leading firms are putting money into user-friendly services and applications that are tailored to meet the diverse requirements of smartphone owners.
Some of the best-known companies worldwide have set up cutting-edge security systems to increase their customers' confidence while making various types of payments. Such companies like Google or Amazon could use cutting-edge security systems to enhance consumer confidence while making online payments.
A digital wallet stores credit card details on a mobile device. It is convenient to use a digital wallet to pay for things at the store. Through a digital wallet, people can also transfer money from their bank account, pay bills such as electricity or water, book movie tickets, travel reservations, mobile recharges, etc. The demand for payment systems built around newer technologies like virtual currency in recent years seems high. The adoption of mobile payment systems in developing countries is thus contributing to the intensification of a profound consumer revolution.
Moreover, the ability to know customers in real time is one of the technological innovations that contribute to the rise in mobile wallet adoption. Since it can retrieve usernames and information instantly, more retailers are adopting the technology at a faster rate because it makes their jobs easier, which, in turn, fosters market growth.
Global Digital Wallet Industry Drivers:
Increasing adoption of smartphones
Smartphones are becoming cheaper and more affordable to many. Smartphone use has become common worldwide, leading to the digital wallet market growth because of the availability of internet resources globally. Furthermore, a large portion of the population now owning smartphones increases the potential user base for mobile wallet services.Moreover, smartphones are becoming regarded as indispensable instruments for day-to-day activities, such as banking. Further, the market growth is characterized by the increased use of digital payment modes that offer more convenience to their users. Moreover, to continue their essentiality in the digital age, leading firms are putting money into user-friendly services and applications that are tailored to meet the diverse requirements of smartphone owners.
Increasing focus on contactless payment
The higher emphasis on using digital wallets has resulted in increased demand, implying that the market will be favourable henceforth. There also continues to be a growth in the popularity of touchless payment systems because individuals need a safer mode since they deviate from the use of paper money or cards. Moreover, digital wallets are provided with almost proximity interaction (NFC) technology, enabling quick and secure contactless transactions by customers using their smartphones on POS machines. It means that prompt payment is more convenient for those who are busy. Paying for goods or services using contactless cards has seen an increased use among people in a bid to maintain cleanliness against spreading diseases like coronavirus. Businesses are spending money on NFC-capable terminals in an attempt to meet customer preferences, which has resulted in the expansion of the market.Rising security concerns
Digital wallet providers understand that their products need to be more secure than before. Hence, they are rolling out advanced security features such as biometric authentication and tokenization to boost public trust. Moreover, authentication techniques based on biometrics create a very secure layer, thereby ensuring that only legitimate users can access or use the phone wallets that they have created. Additionally, tokenization reduces the likelihood of a data breach by making it deeper.Some of the best-known companies worldwide have set up cutting-edge security systems to increase their customers' confidence while making various types of payments. Such companies like Google or Amazon could use cutting-edge security systems to enhance consumer confidence while making online payments.
Easy checkout process
Digital wallet apps make it possible for users to store different payment methods, like debit cards and credit cards, among other cards, in one place. Because of this, there is no need to carry plastic cards around anymore because any transaction can be quickly made. Furthermore, digital wallets simplify both online and offline payments, thus easing checkouts. Digital wallets also make it easier to check out for both in-person and online purchases. In keeping with this, consumers can finish transactions on their smartphones with a few taps, cutting down on time spent in line or entering payment information. Additionally, digital wallets provide tools for budgeting and tracking transaction histories. The market is growing because consumers can easily keep an eye on their spending and get insightful information about their financial habits.Global Digital Wallet Industry Restraint:
Increasing cases of cyber crimes
Digital wallets and mobile payment applications have become more popular which is why they have attracted the eyes of cyber-criminals. Due to mobile wallet attacks, many people have lost their sensitive information, and hundreds of millions of dollars have been lost in the process. NITI Aayog data shows that such attacks have affected more than half the Indian enterprises; a few examples are ransomware, phishing scams, Trojans, and denial-of-service attacks; all these are cyber threats that could disrupt the steady growth of the company’s business. Providers of financial technology services are more susceptible to various types of cyber-attacks owing to the constant addition of new features and technologies aimed at satisfying customer demands, which could, in turn, inhibit market development.Global Digital Wallet Industry Geographical Outlook:
Asia Pacific is projected to grow at a high rate during the forecast period
China has long been a prominent participant in the mobile economy, using its fintech companies to facilitate nationwide cashless transactions until recently. The speed at which Southeast Asia's economy is growing is extremely high, and at the same time, there has been an increase in smartphone use. Also, this region depended mainly on cash, but now it has many vendors, including banks, ride-rental companies, remittance companies, and fintech startups, making this transformation possible.Global Digital Wallet Industry Key Developments:
- In June 2023, Google revealed plans to expand Google Wallet into five additional nations. Montenegro, North Macedonia, Argentina, Albania, and Bosnia and Herzegovina. In a forum post, a company representative announced the launch and mentioned that the app was made available in 12 countries across Asia, Europe, and North America.
- In June 2023, Mastercard, a payments network, and Alipay, a Chinese mobile payment platform, partnered to give foreign visitors another simple way to make cashless payments in China. Through cooperation, foreign visitors can link any Mastercard card to their Alipay digital wallet, simplifying e-payments in China.
Key Market Segmentation:
Global digital wallet industry is segmented and analyzed as below:
By Device
- PC/Laptops
- Smartphones
By Application
- Money Transfer
- Recharge
- Movie Booking
- Food Ordering
- Others
By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- UK
- France
- Germany
- Spain
- Others
- Middle East and Africa
- Saudi Arabia
- UAE
- Israel
- Others
- Asia Pacific
- China
- Japan
- India
- South Korea
- Taiwan
- Thailand
- Indonesia
- Others
Table of Contents
1. INTRODUCTION
2. RESEARCH METHODOLOGY
4. MARKET DYNAMICS
5. GLOBAL DIGITAL WALLET INDUSTRY BY DEVICE
6. GLOBAL DIGITAL WALLET INDUSTRY BY APPLICATION
7. GLOBAL DIGITAL WALLET INDUSTRY BY GEOGRAPHY
8. COMPETITIVE ENVIRONMENT AND ANALYSIS
10. COMPANY PROFILES
Companies Mentioned
- PAYMENT
- SAMSUNG
- APPLE INC.
- GOOGLE LLC
- PAYPAL
- LINE PAY CORPORATION
- PAYTM PAYMENT BANK LTD
- ONE MOBIKWIK SYSTEMS LIMITED
- ZELLE
- WALMART
- MASTERCARD
- WECHAT (TENCENT HOLDINGS LIMITED)
- ALIPAY (ALIBABA GROUP)
- MERCADOLIBRE INC.
- VENMO
- CASH APP
- GOPAY
- PHONEPE
- RAPIPAY FINTECH PRIVATE LTD
- DANA - PT
- HUAWEI PAY (HUAWEI TECHNOLOGIES CO. LTD)
- KAKAO CORPORATION
- FREECHARGE PAYMENT TECHNOLOGIES PVT. LTD (AXIS BANK)
- PICPAY
- GRAB HOLDINGS INC. (GRAB)
- CONSENSYS (METAMASK)
- IMTOKEN PTE. LTD.
- LEDGER
- HYPERPAY
- COINBASE
- SAFEPAL WALLET
- MATHWALLET
- ATOMIC WALLET
- PHANTOM
- ALPHAWALLET
- COINBASE
- TRUST WALLET
- IDENTITY
- THALES
- IDENTYUM
- ID.ME, INC.
- SCYTALES AB
- EUDI WALLET
- GOOGLE LLC
- TRINSIC TECHNOLOGIES INC:
- APPLE INC
- SAMSUNG
- LA WALLET
- DIGILOCKER
- ACCESS
- APPLE INC.
- GOOGLE LLC
- SAMSUNG
- LASTPASS
- SELZNICK SCIENTIFIC SOFTWARE
- THE CLEVELAND ORCHESTRA AND MUSICAL ARTS ASSOCIATION
- TRUE TICKETS
- WALLET PASSES
- PAYPAL
- WHITE LABEL PLATFORM
- CELLUM
- MASTERCARD
- AMDOCS
- VELMIE
- MISTRAL MOBILE
- PANAMAX INC. (BANKAI GROUP INC)
- PURESOFTWARE
- TELEFONAKTIEBOLAGET LM ERICSSON
- YOUTAP LIMITED
- HI SUN FINTECH GLOBAL LIMITED
- COMVIVA TECHNOLOGIES LIMITED (A TECH MAHINDRA COMPANY)
Methodology
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Table Information
Report Attribute | Details |
---|---|
No. of Pages | 403 |
Published | June 2024 |
Forecast Period | 2024 - 2029 |
Estimated Market Value ( USD | $ 6.97 Trillion |
Forecasted Market Value ( USD | $ 17.11 Trillion |
Compound Annual Growth Rate | 19.6% |
Regions Covered | Global |
No. of Companies Mentioned | 71 |