Juniper Research forecasts that by 2029, more than two-thirds of the global population will own a digital wallet, marking a significant leap from the 52.6% adoption rate projected for 2024. The anticipated 15.3% growth in digital wallet usage is set to be driven by factors such as the increasing convenience of digital payment systems and their ability to provide financial access to underserved communities.
As adoption accelerates, digital wallets are expected to play a key role in reshaping global financial ecosystems, making transactions easier and more inclusive for individuals in regions with limited access to traditional banking services.
The research found that not requiring hardware enables merchants to accept digital wallet payments more easily, compared to card payments. An emerging trend is mPOS, in which merchants accept payments through a mobile device, either via QR codes or the mobile device’s NFC capabilities.
The report predicts that Apple’s decision to unlock its devices’ NFC capabilities for third-party wallets will promote competition in the wallets’ space. It represents an opportunity for established wallets, such as Vipps in Norway, to attract customers that were previously restricted to Apple Pay.
The report predicts that, in emerging markets, wallets will increasingly offer microloans and basic insurance products. It recommends that wallets in developing markets begin development of these finance products immediately and must look to emulate the success of M-PESA has experienced in Kenya.
Report author Michael Greenwood said, “These basic financial services allow wallet providers to diversify revenue streams. These providers must take advantage of mobile financial service licences, where available, as they are often associated with a lower regulatory burden than full banking licences.
“This lower burden gives wallets more room to innovate; allowing them to make financial products that can target the opportunities specific to their markets,” Greenwood added.
Source: https://mediabrief.com/juniper-research-study-on-digital-wallets/