As consumers continue to rely on mobile devices to conduct online transactions, a new report says the mobile wallet marketplace is evolving to meet customer demands. According to Mobile Wallet Trends, published by Global Acceptance Transaction Engine (GATE), mobile wallets are gaining market traction.
Because of the convenience and accessibility of mobile wallets, there has been a significant increase in user adoption and merchant acceptance since the end of 2017. According to the report findings, 2.07 billion consumers will use a mobile wallet for payment transactions in 2019, which is a nearly 30-percent increase from 2017. The demands from both merchants and consumers has also created a need for increased mobile wallet security.
While acceptance has grown, online merchants have identified conversion, fraud reduction and compliance as their top three payment needs. Offline merchants, however, reported a need for efficiency, cost savings and loyalty to incentivize customers to spend more.
Given that 1.7 billion adults around the world do not have access to bank accounts, mobile wallets can offer an alternative to mainstream credit cards. A billion of those consumers without a bank account do own mobile phones, though only 480 million have internet access. As a result, near field communication (NFC) payment technology and transactions via QR code present viable alternatives, though the potential success of Bluetooth technology for payments has yet to be determined.
“In most countries, mobile wallets are still in early development and many players can still be successful,” the report said.