Digital Wallets to Power Nearly 50% of Global Transactions by 2027: Report

Digital Wallets to Power Nearly 50% of Global Transactions by 2027: Report

Time Stamp: March 21, 2024 9:01 AM
Digital Wallets to Power Nearly 50% of Global Transactions by 2027: Report PlatoBlockchain Data Intelligence. Vertical Search. Ai.

The expansion of digital wallets is driving exponential growth in global transactions. According to a report by Worldpay,
digital wallets accounted for $13.9 trillion in the value of global transactions in
2023. This figure comprised half of all online purchases and 30% of
point-of-sale transactions.

Gabriel de Montessus, the Head of Global Enterprise at
Worldpay, mentioned: “It is important to understand that digital wallets
are merely a mechanism for transmitting a payment, and so it is really
magnifying trends we were seeing globally around the shift away from cash to
other payment types, such as credit and debit cards or account-to-account
(A2A).”

“For example, in places like Brazil and India
that have until recently been cash-heavy economies, instant payment services
like Brazil’s Pix are being tapped into for their convenience, speed, and
reliability.”

This rise in digital wallets is attributed to factors such as ease of
use, accessibility, and enhanced security measures, which have instilled trust and confidence among consumers. Worldpay projects that
digital wallets are poised to become the basis of payment methods globally.

While digital wallets emerged in the late 1990s, the
COVID-19 pandemic boosted their widespread adoption. Across various regions,
the preference for funding digital wallets differs. The established payment
methods like credit and debit cards have a strong consumer loyalty in some
markets.

However, regions like Brazil, India, and the
Netherlands are experiencing a surge in alternative payment methods, such as
account-to-account transactions. This trend is driven by government investments
in infrastructure and consumer demand for convenient and reliable payment
options.

Global Adoption and Regional Trends

Integrating digital wallets into point-of-sale
transactions has streamlined online checkout processes and simplified in-store
payments , offering a standardized experience across different payment methods.

Montessus added: “As businesses and governments
look to accelerate commerce and streamline payments, we will see more
investment in real-time payments infrastructures globally, which will likely
further accelerate digital wallet adoption.”

Notably, as the stakeholders in the payments ecosystem
collaborate to enhance payments for consumers and merchants, the stage is set
for continuous innovation and value creation.

The expansion of digital wallets is driving exponential growth in global transactions. According to a report by Worldpay,
digital wallets accounted for $13.9 trillion in the value of global transactions in
2023. This figure comprised half of all online purchases and 30% of
point-of-sale transactions.

Gabriel de Montessus, the Head of Global Enterprise at
Worldpay, mentioned: “It is important to understand that digital wallets
are merely a mechanism for transmitting a payment, and so it is really
magnifying trends we were seeing globally around the shift away from cash to
other payment types, such as credit and debit cards or account-to-account
(A2A).”

“For example, in places like Brazil and India
that have until recently been cash-heavy economies, instant payment services
like Brazil’s Pix are being tapped into for their convenience, speed, and
reliability.”

This rise in digital wallets is attributed to factors such as ease of
use, accessibility, and enhanced security measures, which have instilled trust and confidence among consumers. Worldpay projects that
digital wallets are poised to become the basis of payment methods globally.

While digital wallets emerged in the late 1990s, the
COVID-19 pandemic boosted their widespread adoption. Across various regions,
the preference for funding digital wallets differs. The established payment
methods like credit and debit cards have a strong consumer loyalty in some
markets.

However, regions like Brazil, India, and the
Netherlands are experiencing a surge in alternative payment methods, such as
account-to-account transactions. This trend is driven by government investments
in infrastructure and consumer demand for convenient and reliable payment
options.

Global Adoption and Regional Trends

Integrating digital wallets into point-of-sale
transactions has streamlined online checkout processes and simplified in-store
payments , offering a standardized experience across different payment methods.

Montessus added: “As businesses and governments
look to accelerate commerce and streamline payments, we will see more
investment in real-time payments infrastructures globally, which will likely
further accelerate digital wallet adoption.”

Notably, as the stakeholders in the payments ecosystem
collaborate to enhance payments for consumers and merchants, the stage is set
for continuous innovation and value creation.

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