BASINGSTOKE, United Kingdom, July 10, 2023 (GLOBE NEWSWIRE) — A new
study from Juniper Research [1], the foremost experts in emerging
payments [2], found the total value of digital wallets transactions will
rise from $9 trillion in 2023 to surpass $16 trillion in 2028, growing
by 77%.
This trend is driven by growth across both developed and developing
markets, as increased adoption of advanced services such as BNPL (Buy
Now Pay Later), microloans and personal financial management drives
end-user engagement. The study found that in a highly congested wallets
landscape, diversifying their appeal to users is vital.
A digital wallet is a software-based system that can act as a storage
mechanism for a user’s payment, identity, loyalty, or ticketing
information.
For further details, see the new report, Digital Wallets: Platform
Analysis, Key Trends & Market Forecasts 2023-2028 [3], or download a
free sample [4].
Advanced Services to Create New Revenue Streams
The report identified advanced services as a key source of revenue
growth for digital wallets. Advanced services, such as BNPL or
microloans, are allowing digital wallet providers to diversify their
revenue. The popularity of BNPL, especially among younger consumers,
will draw greater numbers of users, and generate additional revenue.
This approach can be seen with Apple’s roll-out of numerous add-on
services, including Apple Pay Later.
Research author, Michael Greenwood, added: “_Advanced services give
digital wallet providers an opportunity to differentiate themselves in a
congested market and generate additional revenue. Super app strategies,
which many digital wallets are pursuing, will rely on the effective
deployment of advanced services at scale_.”
Security & Convenience Key Drivers for User Adoption
The research found security benefits are a key driver of digital wallet
use in eCommerce in developed markets. Many consumers do not wish to
enter card information online. With digital wallets, this issue is
reduced, as tokenisation enables card and other payment information to
be used in a highly secure way. The research also identified that as
digital wallets become broader, including elements of digital identity,
convenience will play a greater role; enabling wallet services to act as
more of an all-inclusive app for financial wellbeing.
