For the savvy digital wallet provider, the fintech revolution in online payments and person-to-person remittance has enabled several new players to achieve a growing presence across the global financial services and retail ecosystems.
In the U.S. market, no mobile wallet has emerged triumphant yet. The user base is split among operating systems and also fragmented across services like PayPal, bank-specific ventures like Chase Pay and retailer solutions like Walmart Pay.
The major players in the smartphone ecosystem are driving growth with value-added services. The emergence of several high profile mobile payment service offerings has provided the sector with much needed new growth opportunities.
Source: Digital Lifescapes
Mobile wallets continue to rise in popularity in the UK, based on May 2014 survey by Marketing Sciences. The ability to collect loyalty points and redeem vouchers were the mobile wallet features of most interest.
Meanwhile, around one-third of respondents were interested in making payments up to £20 ($31.25).
In the course of the past 5 years, the mobile phone device has transitioned from a mechanism for person-to-person communication to a multi-purpose facilitator of essential everyday activities. Making payments has been an integral part of this transition, and the emergence of the mobile wallet is a key to ongoing market development.
Juniper Research has found that 1 in 5 mobile handsets will have mobile wallet functionality by 2018 — that’s compared with less than 1 in 10 at the end of 2013.