A cashless economy is what we’re (almost) living in these days. This progress towards following cashless payment services has brought us to a time when most of us have been utilizing digital wallets. Moreover,
“According to Juniper Research, the number of people using digital wallets would approach 4.4 billion by 2025.”
For those wondering, a digital wallet (also known as an electronic wallet) is a software-based system that securely saves users’ payment information as well as passwords for various payment methods and websites. Mobile payment systems, which allow users to pay for products using their cellphones, can be used in conjunction with digital wallets. The introduction of payment-enabled mobile phones, real-time and linked marketing, and the impact of social media are all key elements influencing industry growth. Mobile commerce and mobile ticketing are the primary markets with strong revenue and growth rates.
Having understood that, let us go straight to the trends of digital wallet market trends popular in 2022
AI and Machine Learning provide top-tier security
When it comes to payments, security is the most important factor. People will always choose to use a payment option that is very secure. That is why payment technologies will be unable to progress until they achieve high-level security. Every day, banks get a large amount of consumer information and payment data. Banks are now relying on machine learning to detect all potential risks in seconds.
Machine learning is the first step in achieving artificial intelligence. Banks constantly feed their software with fresh and varied transactions. The program learns to detect fraudulent transactions in real-time by analyzing a small collection of transactions. As the program gets more transactions, it becomes more adept at detecting fraudulent transactions.
The best example is when you receive a text message from your bank inquiring if the transaction was done by you or by someone else. This warning notice assists both the user and the bank in avoiding a serious blunder. These texts are not sent by a person. All of these texts are sent to you by machine learning algorithms.
Technology-Based on blockchain
Blockchain technology provides enormous value on a rapid worldwide ledger. The technology may be used to send money from person to person all around the world. It is interoperable, cost-effective, easy to use, and efficient. Because the cost and time required are much lower, it is an ideal solution for digital payments. On the other hand, digital currencies such as cryptocurrencies are gaining appeal across the world, particularly among youthful investors. Over 40 million bitcoin wallets have been generated to date, which is astounding. Despite market ups and downs, the number of cryptocurrency wallet users has increased dramatically. This upward trend has persisted for the past two and a half years. Furthermore, this trend will always witness a surge.
Authentication using biometrics
Methods of authentication include fingerprint scanning, iris recognition, face recognition, heartbeat analysis and others. Biometrics is a one-of-a-kind method of assuring safety and security in the digital payment system. It is a very secure strategy that assists in the development of consumer trust and loyalty. With an increase in identity theft and payment fraud, biometric authentication is an excellent solution to assure the dependability and security of all online payments. With the surge in identity theft and fraud, biometric identification has the potential to become a trustworthy and safe solution for all digital payments in 2022.
Mobile wallet dominance
Digital wallets do not require a real bank account and store all payment information securely and compactly. This is made possible through Near Field Communication (NFC) technology, which enables devices in close proximity to quickly converse and share data. NFC has become a prominent phrase in the digital payments area as contactless payments have increased.
A mobile wallet solution is just a mobile application that attempts to emulate the functionality of a physical wallet. A mobile wallet allows you to send money to other users, receive money from other users and save money within the wallet. Not only that, but a mobile wallet allows a user to pay utility bills, purchase tickets, receive incentives and do a variety of other things.
Many major corporations, like Apple, Google and Samsung, have begun to offer mobile wallets to facilitate this transaction. All of those wallets, however, are brand and business specific. More businesses will strive to develop their own brand-specific wallets in the coming years.
International remittance
The growth of international remittance has been immense in the past few years. As a matter of fact, this statistic depicts global remittance flows from 2014 through 2020, with projections until 2022
The value of remittances globally was anticipated to be 702 billion US dollars in 2020, a figure that is expected to rise in the next two years.
Digital technology is rapidly changing the face of the remittance sector.
India led the way with total remittance receipts of $80 billion, followed by China’s $67 billion. Mexico and the Philippines were second and third, with $34 billion and $26 billion, respectively.
In the future years, we may witness such figures from all over the world, as well as a complete overhaul of the remittance business fueled by digital payment solutions.
Conclusion
Digital payment solutions will be around for a long time. It would not be incorrect to refer to it as a future method of transaction. Mobile wallets, which began as a simple mobile payment application, have gone a long way. But its journey is far from done. Many ground-breaking and cutting-edge innovations will be released in the field of digital wallet payment in the future years. As of today, these are the five most intriguing trends in digital wallet solutions for 2022.
Develop a digital payment app with the help of Stellar Digital’s app development team. With their years of experience, they can help you come up with an application that can benefit you and your business in the longer run.
