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Mobile wallets offer the ultimate solution for the pain of everyday transaction process. The novel technology houses both payment-related credentials including credit card and bank account details along with the non-payment-related information such as ticket information and loyalty cards.
The simplicity offered by mobile wallets to manage payments, participate in loyalty programs, and track transaction is the major reason behind the colossal growth of the global mobile wallet market. Moreover, the advent of mobile wallet has completely replaced the need to carry bulky plastic cards.
A few mobile wallets such as Android Pay, Apply Pay, and Samsung have gained humongous popularity over the last few years. However, merchandise-specific wallets apps such as Starbucks wallet app and Walmart Pay are seeking a place in consumers’ mobiles.
Today, digital wallets are becoming the prime gateway for all banking transactions over the internet due to its seamless way to trade, store, and manage assets in real time. However, there are several security concerns that may hamper the mass adoption of mobile wallets.
On the contrary, the adoption of various security encryption and tokenization technology have opened new opportunities for faster, cheaper, and more secure transaction. It is clear the euphoria of the mobile wallet is here to stay, here are some of the biggest trends in the mobile wallet market.
1. Mobile wallets to become more than just online wallets
Although the prime purpose of mobile wallets is to manage and store funds, the developers are incorporating more features that can allow users to effectively manage their money as well as invest in trades and exchange with other customers.
In the future, there would be more wallet apps that could manage money, especially for the cryptocurrency holders as the rates fluctuate constantly. There would be mobile wallets that would allow users to track the conversion rates and prices in real time.
Moreover, now mobile wallets apps offer built-in charts, graphics to help the user visualize the trends in the market to invest accordingly. In fact, several apps are now offering collateral services such as microcredit services, hyper-local transaction, and cash pick-ups.
2. Mobile wallets to replace the exchange
There were numerous incidences of cryptocurrency hacks in the last years. Now, in this year, mobile wallets are becoming the most popular way to avoid hacks and information leaks.
However, no online application, including mobile wallets, are entirely immune to cyber-attacks, but app developers offer various security protection such as adding more personal layers of security, pin-codes, and two-factor authentication.
3. Increase in mobile wallet loyalty programs
No one dislikes to get discounts and enroll in loyalty programs to collects offers. The mobile wallets industry is already experiencing the shift of businesses to app-based loyalty systems.
These systems enable customers to accumulate loyalty points that can be redeemed at times to get offers. For instance, airlines now allow passengers to collect digital currency that can be spent on car rental services and hotels that have a partnership with the airlines.
4. Mobile banking services through mobile wallets
Today, more banks are ready to offer their mobile banking services to customers through available mobile wallet apps. A big chunk of smartphone owners uses these services to transfer money from one account to another, go through recent payment transactions, and check their balance.
These services have acted as a catalyst to boost the penetration of cashless payment. Moreover, to keep up with the trend of digital payments, various financial institutions have invested more money and time to develop an innovative apps for mobile transfer.
The mobile remote deposit capture is another application that is gaining popularity in the last few years. With the use of this application, customers can deposit their cheques by capturing a photo of it and sending it electronically to the respective bank.
These applications have boosted efficiency and convenience for the customers of the bank, increasing adoption of mobile wallets more than ever.
5. Mobile wallet for cryptocurrency
The growing popularity of cryptocurrency has made its impact on the mobile wallet industry. There are only a few apps that support the virtual currency transactions.
Recently, Flexa, the global network uniting retail and blockchain technologies company, recently announced the launch of a mobile app that enables customers to make secure and immediate cryptocurrency payments.
The app allows the transaction of several virtual currencies such as Ether, Bitcoin Cash, Bitcoin, and the Gemini dollar.
It is expected that around 2.1 billion people across the globe use a mobile wallet to make payment. The incorporation of various technologies such as blockchain for the seamless and secure online transaction has increased its popularity.
The mobile wallet market would expand in the coming years, especially when the penetration of smartphones and 5G network continues to increase and thus, the leading market players must improve their services to fulfill every demand for their tech-savvy customers.