For the most part of human history, we have used physical currency as money. However, in 2023, all of that has just changed.
You see, within the past century, we have seen many technological developments. The financial industry has been one of the largest contributors as well as benefactors of this. And this has given us what we today know as the fintech industry.
Fintech stands for financial technology and this is something that has integrated well in our day-to-day life. In fact, there are billions of people using various fintech solutions every day. However, there’s one form of fintech app that stands above the rest, i.e. digital wallet apps.
Now, the recent growth in the digital wallet market has attracted people from across the world to create e-wallet apps of their own. Well, if you are one of these, must be really interested in the digital wallet market. and if you are, this blog is for you.
Here, we shall be discussing all you need to know about the concept of digital wallet payment apps and the digital wallet market. Therefore, with this being said, let’s get right into it, starting with the basic question:
What Are Digital Payment Apps?
One of the very first things that you need answer to is, what are digital payment apps?
Well, as the name suggests, these are a type of fintech mobile applications which allow users to process payment digitally.
For instance, with an existing bank account, you can use this app to transfer money from your account to your friends within seconds. Moreover, you can also use the in-app wallet for transactions.
There are a lot of things that you can do here apart from digital money transfers. This covers mobile recharge, bill payment, credit card management, and much more. These are just some of the benefits of digital payments
Moving on, with this being said, let’s move on to the next section where we shall be taking a deep insight into the digital wallet market.
A Deep Insight Into Digital Payment Market
The digital payment market is larger than ever.
As per a report by Allied Market Research, the global digital wallet market was valued at $1.04 trillion in 2020. Digital wallet market growth is projected to reach a value of $7.64 trillion by 2027, growing at a compound annual growth rate (CAGR) of 28.2% during the forecast period from 2021 to 2027.
But we don’t need a report to tell us the amazing growth this industry has shown, do we?
In reality, everyone ( most of them) who owns a smartphone and bank account is using a mobile wallet in Myanmar, the USA, England, and every other part of the world.
Now, if you want to understand the entire scene of the digital wallet market, you need to understand the trends going on in the digital wallet market.
To help you with that, we shall be discussing the digital wallet trends in the next section of the blog. Therefore, with this being said, let’s get right into it, starting with:
Digital Wallet Trends and Driver
So, what are the digital wallet trends contributing to skyrocketing digital wallet market growth?
Well, if that’s what you are looking for, we shall be discussing some of the largest trends in the industry. These are, as mentioned below:
One of the first trends is obviously that of mobile payment.
The proliferation of smartphones and mobile internet access has fueled the growth of mobile payment solutions.
Mobile wallets, such as Apple Pay, Google Pay, and Samsung Pay, have gained popularity, allowing users to make secure payments using their smartphones.
In fact, this is the main driving force behind the digital wallet market as a whole.
It goes without saying that growth in e-Commerce and mobile commerce to be more specific has been a catalyst leading to the growth of the digital wallet market.
You see, the rapid expansion of e-commerce globally has increased the demand for digital payment solutions.
Online retailers and marketplaces offer a range of payment options, including credit/debit cards, digital wallets, and bank transfers, to facilitate seamless transactions.
Well, no one likes carrying a lot of cash around. It can be risky, troublesome, and not recommended overall.
Well, this is where contactless payment methods come in, enabled by near-field communication (NFC) technology, and have gained momentum.
Contactless cards and mobile payment apps allow users to make quick and secure payments by simply tapping or waving their devices near a compatible payment processing.
This is one of the larger digital wallet trends in this market.
Peer-to-Peer (P2P) Payments
Speaking of digital wallet apps, how can we not speak of P2P payment platforms?
Apps like PayPal, Venmo, and Zelle, have gained popularity for easy money transfers between individuals.
These platforms provide convenience for splitting bills, repaying friends, and conducting small-scale transactions.
Cryptocurrency and Blockchain
Last but not least, it’s time to discuss one of the megatrends in the fintech industry, cryptocurrency, and blockchain technology.
The emergence of cryptocurrencies, such as Bitcoin and Ethereum, has introduced alternative digital payment systems.
Blockchain technology, which underlies cryptocurrencies, offers decentralized, secure, and transparent transactions, revolutionizing the financial industry.
These are some of the major trends seen in mobile wallet app development. And with this out of the way, let’s look at future prospects of digital payment apps in the section below:
Wondering what the future holds for digital payment apps? Well, the future for this digital wallet market is bright. Let’s look at some future prospects of the same.
- Increasing smartphone penetration and internet access in emerging markets will fuel the adoption of mobile payment solutions.
- The ongoing shift from cash-based transactions to digital payments, driven by convenience and evolving consumer preferences, will continue to drive market growth.
- Advances in technology, such as biometric authentication, artificial intelligence, and blockchain, will enhance security and improve the user experience, further boosting digital payment adoption.
- Cross-border digital payments are expected to become more seamless and cost-effective, facilitating international trade and e-commerce.
- The integration of digital payment solutions with other sectors, including transportation, retail, and healthcare, will create new opportunities and expand the market.
Should You Invest in Digital Payment Market With Your Own Digital Payment App?
Going through all the top digital payment apps, you must be wondering, should I develop my own digital wallet app?
Well, the short answer to this question is, YES!
With the rising digital wallet market and immense growth seen in recent times, investing in such an opportunity is a very good idea. Therefore, you should definitely create your own eWallet app and rule the market.
Digital payment market is growing at an amazing rate. And in this blog, we discussed all you need to know about digital wallet market as well as developing a digital wallet app. Now, if you are someone who wants to do the same, it’s highly recommended that you consult app development company. They will be able to help you with the same.