A new study has found the value of digital wallets transactions will exceed $12 trillion in 2026, from $7.5 trillion in 2022.
To capitalise on this substantial growth, the research predicts leading digital payment vendors will diversify their payment products to include new solutions, such as buy-now-pay-later and cryptocurrencies.
The new research found increasing merchant acceptance of digital wallet methods at e-commerce checkouts has been a driving force behind enabling further digital wallets use.
It predicts APIs (Application Programming Interfaces) that connect financial institutions to local retailers will be key to the international growth of wallets usage for large, cross-border e-commerce merchants.
The research also recommends that digital wallets vendors look to offer value-added services, such as loyalty rewards and credit, to diversify their revenue streams; capitalising on a highly active user base.
PayPal & Alipay rank as leading digital wallet providers
3. WeChat Pay
4. Apple Pay
5. Google Pay
“The digital wallets market is heavily saturated, meaning finding a source of differentiation is critically important,” says Research co-author Damla Sat.
“We have ranked PayPal as an established leader as it has successfully grown an expansive, differentiated offering; leveraging its strong merchant acceptance by expanding quickly into buy-now-pay-later and QR code payments, as well as signing partnerships with key merchants to scale its innovative solutions.”
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