A new study from Juniper
Research has found that the number of people using digital wallets
will increase from 2.3 billion this year to nearly 4 billion, or 50% of
the world’s population, by 2024. This in turn will push wallet
transaction values up by more than 80% to more than $9 trillion per
annum.
According to the study, Digital
Wallets: Service Provider Analysis, Market Opportunities & Forecasts
2019-2024, strongest growth is expected to come through online
payments for remote purchases. The study argued that increases here
would be driven by a greater volume of transactions conducted via stored
credentials. For example, in the US, annual spend per digital wallet is
expected to increase from around $3,350 this year to more than $6,400 by
2024.
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Furthermore, the research claimed usage would be boosted by the
increased security for online payments afforded by the introduction of
SRC (Secure Remote Commerce) standards from H2 2019, with transactions
protected via tokens and dynamic cryptograms.
QR Code Usage Spreading Beyond China
Meanwhile, the report highlighted the challenge posed to NFC-based
contactless wallets, such as Apple Pay and Samsung Pay, by the emergence
of wallets based on QR codes, with growth expected to be boosted by the
implementation of EMVCo standards. However, Juniper believes that the
primary opportunities for QR code wallets outside their Chinese
heartland will occur in developing Asia, where there is a paucity of POS
infrastructure and merchants can use smartphones to fulfil QR-based
transactions.
Wallet Offerings Ranked
The study also provided comparative assessments of 14 national and 22
international wallet offerings, combining analyses of product range and
banking partnerships with customer feedback to gauge their prospects.
According to research author Dr Windsor Holden, “The Juniper
Innovation Index and Leaderboard enable us to see at a glance precisely
where these wallets are positioned relative to one another and how well
placed they are to capitalise on the opportunities afforded to them.”
Juniper Research is acknowledged as the leading analyst house in the
digital commerce and fintech sector; delivering pioneering research into
payments, banking and financial services for over a decade.
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