Changing Trends In Digital Wallet payments
Introduction
As discussed in the earlier blog on Digital wallets, we have come to understand that digital wallets are far more comprehensive than any other mode of electronic fund transfer system. We also understand that there are many advantages of using digital wallets which are: digital wallets are convenient to operate, help in the organization of your banking tools and are cost-effective.
We also know how convenient it becomes for people to use digital wallets as they can deposit money from their banks directly to their digital wallets before undergoing any transactions through wallets. Moreover, we have seen how digital wallets have become a shift in the paradigm of recent times in the world of finance and have in a percentage, overtaken the transaction figures to a great extent.
But there is much more to be informed about when it comes to properly understanding digital wallets. Let us begin by understanding some shifts in the changing trends of Digital Wallets that will radically change how merchants accept payments in the years to come.
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Changing Trends of Digital Wallets
1) More in-store Mobile and contactless payments – As mentioned earlier, due to the increasing large technology corporates such as Google, Apple, and Samsung; mobile and digital wallets have embraced the industry and in turn have been embraced by people worldwide due to the convenience they offer, the security and authentication features and also the factor that now people do not have to enter their credit/debit card information on the websites and not having to pay via physical transactions.
Another alarming fact to consider is, that in 2016, the total mobile wallet payments only amounted to $75 million, whereas, they are forecasted to grow as much as to $500 million by 2020 - Which means that there has been a tremendous increase in the usage of digital wallets over 80% in five years.
According to a VISA report, 29% of Americans now make zero weekly purchases with cash and the percentage of people who use cash for everything has dropped from 24% to 18% since 2015.
2) Artificial Intelligence on the rise – Artificial Intelligence assistance is becoming widely recognized as top Artificial Intelligence Assistants such as Amazon’s Alexa are already getting all of us used to deploy voice commands and this technology is being incorporated in payment merchandises as well. This is privy to the fact that relying on these assistants is a trend that is surely bound to grow in the future, which will be one day governed by Artificial Intelligence. This is a growing trend which is forcing the merchants to accommodate Ai shopping through their websites, which will also be used as a cutting edge tool for fraud detection and defense against cyber-attacks
3) Biometric Authentication on the rise - Another one among the many changing trends in the system of digital wallets is Biometrics. Biometrics is one of the coolest technologies that we avail in our hands (in our mobile phones, of course). From fingerprint sensors to facial recognition, biometric authentication will continue and is growing as a transitional way to secure and authenticate identity for payments.
This is a more reliable way to cross-check as to deal with the growing problem of identity and theft, and for the merchants, it’s a very easy and a convenient way to verify the identity of whom they are dealing with.
According to Industry Data, there is an expected rise of 18 billion biometric transactions occurring by 2021. The growing use of this form of authentication could make ‘passwords’ redundant in another five years.
4) Social Commerce and Digital wallets linked – Since many of us use social media platforms like Facebook, Twitter, Instagram, Snapchat and other many such platforms daily, merchants have adapted themselves to this growing usage of social media and are reaching out to their customers on these platforms and offer them the ability to check out through the social network they are using, without being redirected to an online store. This happens through advertisements on social media platforms.
There is a psyche behind this concept. The fewer times a customer is redirected, the more are the chance of keeping them interested till the end of the purchase.
According to recent researches on social commerce, 30% of online shoppers claim that it is very likely that they would purchase from social media networks linked with their digital wallets, and about 60% of Instagram users say that they have found new products through the network. Hence, it makes a very good sense to sell such people directly through Instagram.
Conclusion
In conclusion, digital wallets are the leading payment method that everybody enjoys using, and since it’s the most commonly used method of payments and transactions, it is seen that the new technology shifts and innovations are primarily being tested and applied in this field of finance. BankQuality believes in sharing experiences. If you feel that all these changing trends in the paradigm of digital wallets affect your decision in deciding the best digital wallet for you, click here and read reviews by people based on their experiences and make an informed choice while deciding what’s best suited for you!