GATE, a virtual card issuing platform, released its Mobile Wallet Trends Annual Report. The report highlights trends of both mobile wallet and mobile payment usage across global markets.
Mobile wallets are still in the nascent stages in most countries, where some areas are starting to see an uptick in success. Worldwide, 2.07 billion consumers will use a mobile wallet to make a purchase in 2019; this is up nearly 30 percent from the 1.6 billion consumers recorded at the end of 2017. China is currently the largest adopter of mobile payments, but other countries are starting to catch up.
"Trends in the ecosystem have clearly shown China leading the adaption of wallets such as Alipay and WeChat, with QR codes playing a crucial role in their growth. However, the usage abroad for these wallets seems hampered via the lack of QR acceptance points, as NFC remains the method of choice for the Western world. Technologies such as GATE could actually solve this problem, as it would allow Alipay or WeChat to enable NFC acceptance globally without any merchant integration, allowing them to become the most versatile payment methods on the planet," said Mark Gerban, chief commercial officer of GATE.
India has also seen increases in mobile payment usage due to governmental demonetization and the African market has seen strong growth as well due to factors such as low barriers to market entry.Despite the growth seen in these regions, other markets will need to consider several factors to also become key players in the mobile payment industry, such as:
The report goes on to highlight the potential mobile wallets represent to the globally underbanked population. Over 1.7 billion adults (21 percent of the world's total population) do not have access to a traditional bank account. A billion of these adults do have access to a mobile phone, though, and are potential customers for mobile wallets.
"Payments is a critical part of the value chain that allows for continuous customer engagement. As we have seen with many types of e-wallets and mobile payment systems, offering a relevant payment experience for specific cohorts will help uptick activity and brand loyalty. This ultimately leads to higher customer satisfaction, increased revenue and a better product experience," added Gerban.Mobile wallets may still be in their infancy in many countries, but the use of technology and features that improve user experience will drive higher adoption and engagement.