The Future Is Now for Digital Wallets

By Yara Alatshan Product Marketing Manager at KUBRA

At first, uptake of digital wallets was largely among a niche demographic who liked the benefits and were comfortable with the new technology. Fast forward to the beginning of 2020, and we started to see digital wallets being used more often and by a wider group. As digital wallets started picking up steam, COVID-19 hit and massively disrupted the payments industry. Consumers wanted safe, contactless ways to pay, and digital wallets were right there waiting for them.

Consumers Want Seamless Experiences

Consumers want hassle-free, seamless ways to pay their bills. Digital wallets allow them to pay easily and securely using passive authentication, such as face or touch ID. With their credentials already loaded into the wallet, they can tap and go without entering additional credentials or providing further authentication. It’s these truly on-the-go payment experiences that consumers are increasingly prioritizing.[1] In fact, global consumers are expected to make $1.1 trillion noncash payments by 2024.[2]

COVID-19 Has Changed the Way Your Customers Pay for Services

At the outset of the pandemic, consumers quickly sought new ways to pay to reduce face-to-face commerce and limit contact with payment devices. They flocked to digital wallets because they’re easy to use and there’s no physical contact needed for purchases. Our 2021 CX Report found that during the pandemic, 23% of consumers started using PayPal®, 18% started using Apple Pay®, and 13% started using Google Pay™. It was this change that dramatically accelerated the growth of contactless payments. In the past year, digital wallet spending has become so popular that it has surpassed cash as the most popular payment method for in-store purchases.[3]

Data Shows Trends Are Turning Into Habits

There are lots of studies indicating that these digital payments trends are sticking around. RTi Research reported that once the pandemic hit, 30% of responders used contactless payment methods for the first time, with 70% of those newer users indicating they will continue to use them. Further still, 28% of consumers say that they would go to a different retailer if theirs didn’t offer contactless options.[4] Juniper Research expects that the total spend through digital wallets will exceed $10 trillion in 2025, up from $5.5 trillion in 2020. It also confirmed that the 83% growth in spend will continue to be fueled by the habits consumers adopted during the pandemic.

Customers Want More Access to Digital Payments

If you’re focused on improving customer experience, digital payments are a must. Register for our webinar, The Future Is Bright for Digital Wallets As Trends Turn to Habits, on Tuesday, November 9, 2021 to learn more about why you should be adding them to your payment options.

[1] The Growing Importance of Invisible Payments and a Seamless Customer Experience,  MarketScale,  2020.

[2] Business Insider, The Payments Forecast Book 2019: Global Payments.

[3] Digital Wallets Eclipse Cash Globally at Point of Sale for First Time During Pandemic, FIS, 2021.

[4] Majority of Shoppers Emphasize Importance of Contactless Payment Options, Avoid Use of Cash According To New Inmar Intelligence Survey, StreetInsider.com, November 11, 2020.

Thanks for your interest!

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