Tuesday, September 27, 2022

E-Wallet convenience: a growing mobile payments market

E-Wallet

As we move towards a cashless world, mobile payments are considered to be the future. Cash is already a thing of the past in some markets, but more nations are adapting to the changes brought on by the Covid-19 pandemic.

1 billion people are expected to use mobile payment apps or e-Wallets worldwide by the end of 2020, according to the data hub Merchant Savvy report, and the number is expected to grow to 1.31 billion people worldwide by 2023, using mobile payments apps over a 6-month period.

36.6% of smartphone users made an in-store mobile payment in 2019, with the vast majority of mobile payment users mainly in China, especially with the spread of Coronavirus at the end of last year.

What is an e-Wallet?

An e-wallet is a type of electronic card used for transactions made online through a computer or a smartphone. It has the same efficacy as a credit or debit card because it can be linked to an individual’s bank account in order to make payments.

With the help of this method of payment, one can pay for groceries, fashion, plane tickets, and much more. Those purchases can be completed efficiently with near-field communications technology. Users can also create stronger passwords without worrying about whether they will be able to remember them later.

Reasons for rapid e-Wallet adoption

E-Wallets mostly remove the need to carry a physical wallet by storing all of a consumer’s payment information securely and efficiently. This financial concept is a possible benefit to companies that collect consumer data; the more companies know about their customers’ purchasing habits, the more effectively they can market their products and customize the experience of their purchases. However, one of the pitfalls can be the loss of consumer privacy by sharing information online.

The benefits of adopting digital wallets is that it allows many people in developing nations the chance to contribute more to the global financial system. It enables participants to swiftly accept payments for services rendered, as well as receive funds or fees from friends and family in other nations.

One other thing is that e-wallets do not require a bank account with a physical firm or branch, which increases digital inclusion of those in rural areas.

Furthermore, it encourages the use of cryptocurrencies such as Bitcoin, which makes the universal process of transactions much easier.

Examples of digital payment methods

Alibaba, Pinduoduo, JD, Xiaohongshu and Vip.com are the top e-Wallets in China where around 801.7 million people used mobile payment transactions by June 2020, which up from around 765 million users in March 2020, according to Statista.

As for Africa, 50 million new accounts were created in 2019 with a 12% increase in registered users, expected to reach 500 million mobile-money users this year. Africa is the leading continent for mobile-money services, which include apps such as Quickteller and GetBarter, which enable customers to make purchases or payments.