The mobile wallet market has been steadily growing until 2019 when the coronavirus pandemic has begun. As Merchant Machine reports, between 2019 and 2020 the number of users has nearly doubled. The safety, security, and convenience of digital wallets as well as the popularity of smartphones and general digitalisation of society were among the main reasons for the popularity of this method. In terms of revenue, since 2015 the total revenue generated by mobile payment apps has nearly tripled and is expected to reach over 1639.5 trillion by the end of 2022.
Merchant Machine revealed our shifting shopping patterns have influenced the rapid adaptation of digital wallets. In 2024, mobile wallets are predicted to be adapted by more than half of the overall population. More traditional methods such as credit or debit cards will be slowly entering the decline phase. The physical aspect of payment methods is reportedly affecting our payment preferences. Our society is opting for more convenient contactless methods and the cash participation in our transactions will be decreasing.
Besides mobile wallets, the only method of payment that will see an increase in popularity among consumers is Buy Now, Pay Later schemes such as Klarna or Clearpay. These methods are particularly popular among Millennials and Generation Z users due to the possibility of splitting the cost into monthly instalments.
Merchant Machine identified which digital wallets are leading in regard to the number of users worldwide. The mobile payment platforms WeChat and Alipay have amassed 650 million and 550 million users respectively.
According to Focus Finance, when Alipay introduced e-wallets, that usage began to increase. ‘Alibaba was able to seamlessly integrate AliPay into their online marketplace and easily acquire new users by cross-marketing it with their current service offerings’, they explained.
Other platforms that made it to the top five include Apple Pay (507 million), Google Pay (421 million), and PayPal (377 million). Their popularity in Europe and North America is down to mobile brands such as Apple and Samsung whose products are dominating the market.
According to a study conducted by Merchant Machine, China is revealed as the country with the biggest adoption of mobile payments among its citizens. The common usage of contactless payments in China is down to society utilising tech solutions in every aspect of their life. The Nordics have also made it into the top 10, with Denmark (2nd), Sweden (5th), and Norway (8th) seeing the biggest increase in people using contactless payment methods.
It was additionally found that US citizens' adoption of mobile wallets has increased by over 14% between 2019 and 2021, which is the most significant out of all countries on the list, the official press release concludes.
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