Technology continues to evolve continuously in the payment industry. New solutions that can make payments easier in any manner are continuously being innovated and produced. Mobile wallets is a payment trend that has been continuously growing over the past few years. The convenience of not having to carry your wallet physically is becoming increasingly popular with merchants and consumers.
In the recent couple years, mobile wallets have been a growing trend in the finance industry due to contactless payments being on the rise. Mobile wallets allow users to essentially store their debit and credit cards on their smartphones and use it for online e-commerce or in person transactions.
So the question lies; Why are mobile wallets becoming so increasingly popular?
Convenience & Flexibility
Mobile wallets are a very convenient and hassle-free way to make payments. No matter where you are you can pay simply by tapping your smartphone as you would do to a physical debit or credit card. Contactless payments are also supported by mobile wallets, which have become increasingly popular since the COVID-19 outbreak. Users can complete transactions without touching cash or entering a PIN by simply holding their phones near a payment terminal.
Mobile wallets are highly secure and a reliable process to make transactions. Digital wallets protect all the financial information consumers put on their cell phone from potential theft. There are many programs that provide safety and security through encryption, tokenization and biometric authentication to complete any transaction.
Involvement of youth
As technology continues to grow and innovative payment solutions keep developing, the consumers especially the youth are looking out for convenience and easy payment solutions. Many young people see the advantages of adapting this as their main form of taking transactions such as loyalty programs, flexibility and convenience.
Many big companies such as Amazon and several big retail companies are offering many consumers the option to conduct transactions using their digital wallets. Global e-commerce transactions valued at nearly half (49%) were conducted via digital wallets in 2021. Many companies are offering loyalty and engagement rewards for consumers using their mobile wallet to keep up customer engagement.
Rising smartphone use
Smartphone use has grown tremendously over the past few decades. More than 97% consumers use smartphones daily whether it be for entertainment, communication or purchasing purposes. Smartphones have made it more convenient for consumers to have everything in one place without having to physically carry it; whether it be purchases made online or in-person.
Mobile wallets have a promising future as technology advances. In the future, mobile wallets are expected to become even more versatile as digital currencies like Bitcoin become more popular. As well as loyalty programs and engagement, mobile wallets are predicted to include additional features.
Learn more about how Tidypay´s PSP services support mobile wallet payments.
Tidypay offers user-friendly and secure Payment Services combined with our partners POS systems offering the best choices for contactless payments, e-commerce and mPOS solutions.
Tidypay GO SoftPOS is also our upcoming launch which will simplify and offer the services of contactless payment journey furthermore.