The idea of digital wallets has existed for some time and has mostly been associated with mobile technology. Digital wallets have been on the market for some time through mobile wallets such as Apple Pay, Samsung Pay, and Google Pay. However, these have not managed to gain much traction despite existing for more than two years.
Digital wallets in mobile payments
The mobile market can no longer be ignored in this day and age. There are billions of users with access to the internet through their mobile devices and this is why most marketers are placing more emphasis on their mobile ad campaigns. However, research reveals that despite the massive size of the mobile market, only 13 percent of the people who use smartphones have mobile wallets installed in their devices and most of them do not even use those digital wallets.
The slow start could be associated with the limited number of vendors that accept digital payments and also security concerns. This slow pace for digital wallets may seem discouraging but industry experts believe that the situation will be completely different in the next few years. A forecast from Business Insider suggests that mobile payments in the U.S alone will be about $503 billion in 2020 and that about 56 percent of consumers will be using mobile wallets. The rising use of digital wallets, particularly mobile wallets is also expected to take place in other countries.
Blockchain technology has become so popular for a number of reasons, among them, being that it is the underlying technology behind cryptocurrencies and that it is secure and cannot be hacked. Cryptocurrencies are currently a hot subject and have been considered the future of money. The fact that they are digital currencies means they have to be held in digital wallets, otherwise known as cryptocurrency wallets.
Cryptocurrencies are expected to be a major driver towards the growing popularity of digital wallets. If the cryptocurrency market manages to achieve the goal of widespread adoption, then digital wallets might end up becoming so popular that they will be used for major purchases. For example, they could be used for major transactions such as buying cars or real estate among others.
Digital wallets currently focus on facilitating payments but they could be used for other things such as identification, facilitating boarding passes or even digital rewards. They are much more convenient than having to carry money around. The fact that most people never leave their phones when going makes it even more logical to have a digital wallet. This means users will have access to money at any time and any place.
Based on current trends, it is clear that digital wallets are here to stay and they make sense considering that they offer a faster, more secure and convenient payment alternative to paper money. Digital wallets are therefore going to be at the center of the digital shift that is currently taking place and what was once a slow trend will eventually become a global phenomenon.
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