The number of digital wallet users worldwide is set to explode, according to a new report from Juniper Research, driven by mobile wallets. The U.K.-based consultancy found that the number of unique digital wallet users will exceed 4.4 billion by 2025, nearly doubling from 2.6 billion in 2020. Mobile payments were already on the rise, but the pandemic year will cause an acceleration in the alignment between in-person and remote commerce channels, leading to greater use of mobile wallets.
China and India are leading the way, with those two countries expected to account for nearly 70 percent of all digital wallet transactions in 2025. To meet the demand, the report recommends merchants undertake a complete review of their payment processes to ensure they’re offering a “highly capable” mobile app.
“In developed markets, mobile wallets facilitate card payments, but in emerging markets, wallets in places have bypassed cards entirely,” notes Nick Maynard, the report’s co-author. “Wallet providers in developed markets need to focus on building acceptance and analytics features, in order to boost their appeal in a card-centric environment.”
The report also found that, while their share of digital wallet transactions will fall from 47 percent in 2020 to 40 percent in 2025, QR codes will still be the dominant acceptance technology.