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.
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 Useage 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.”