A digital wallet which is also known as an e-wallet is a service, electronic device, or a software solution that enables the users to digitally make the transactions for the purchase of goods or services and regular payments among others. These wallets can also be used in conjunction with mobile payments that further enable the users to pay through their smartphones and tablets among others.
Some of the factors that are boosting the adoption of digital wallets especially across the developing economies of the world include the increasing proliferation of smartphones along with the rapid growth in the penetration of the internet. For instance, the entry of Reliance Jio in India during the year 2016 was a major factor that disrupted the whole Indian market for mobile internet connectivity as tariffs were reduced heavily, which in turn was considered as a major factor that boosted the demand for more smartphones and other mobile devices. Thus, the availability of cheaper and faster internet services in the developing economies around the globe is further providing and impetus for the market to surge in the coming years.
The way of using money has been going through a transformation since the last decade as the integration of smartphones, internet, and financial services together have been significantly booming the use of various cashless payments. Digital wallets currently are considered as a transformation for the retail experience as merchants are leveraging this medium. Simultaneously, mobile-driven loyalty is also anticipated to be a key factor positively impacting the adoption of digital wallets during the next five years.
The growing e-commerce industry throughout the globe is a major factor that is increasing the frequency of adoption of digital payment services. In addition, the rising acceptance of digital payments by various retailers and numerous e-commerce platforms is also propelling market growth during the next five years.
Growing internet penetration is driving the market growth
The burgeoning technology adoption across the various developing economies of the globe and growth in the number of connected devices has led to a surge in the need for the internet. This has been increasing the penetration of internet among the general population along with a rapid growth in the number of mobile devices. This is leading to a high adoption of digital payments especially in the developing economies. According to the World Bank, the percentage of the population using the internet increased from 20.412% in 2007 to 49.723% in 2017.
Similarly, in the developing economies like India and China it has increased exponentially over the past decade which is a major factor impacting the demand for various digital services in these economies. In India, the individuals using the internet (% of the population) increased by more than 30% during the period 2007-2017. Also, in China it reached 54.3% by 2017 from only 16% in 2017. Furthermore, an increasing trend is anticipated during the next five years which is also instigating the growth of the e-commerce sector, online purchase of food, online bill payments, online recharge thereby positively impacting the global digital wallet market growth during the forecast period.
Segment Overview
The global digital wallet market has been segmented on the basis of device, application, and geography. On the basis of device the market has been segmented into PC/Laptops and Smartphones. On the basis of application the segmentation has been done on the basis of money transfer, recharge, movie booking, food ordering, and others. Geographically, the market has been classified into North America, South America, Europe, Middle East and Africa, and Asia Pacific.
The Asia Pacific region is anticipated to show a robust growth over the course of next five years on account of the growing government initiatives regarding the movement towards a digital economy in countries like India, the Digital India Programme, which is aimed to transform the Indian economy into a digitally empowered society and a knowledge economy.
North America and Europe are together projected to hold a major market share due to high internet penetration and early adoption of technology, which are considered to be the prime factors for the market growth in these regions.
Key Questions Answered in Digital Wallet Market Report:
- What are the key regions having a significant market share of the market?
- What are the drivers and restraints of the market?
- Who are the key market players in the market?
- What is the market segmentation of the Digital Wallet Market?
- Who are the end-users of the Digital Wallet Market?
Follow Us
https://www.facebook.com/knowledgesourcing/
https://in.linkedin.com/company/knowledge-sourcing-intelligence
https://twitter.com/ksourcingi
