Digital payment methods are increasing due to the emergence and popularity of new technologies such as mobile wallets and smart watches. In Europe, America and Asia, e-wallets and digital cards have become the main payment methods for consumers. Especially digital wallets, it has become popular around the world in recent years, accounting for 49% of global online payment methods in 2022. In this way, will digital cards and digital wallets kill off plastic?
In this article, we will talk about the market of digital wallets, the reason for choosing digital cards and e-wallets, as well as the reflections for merchants and how Silkpay can help European and American merchants accept multiple mobile payment methods like Alipay, Wechat Pay and UnionPay Yunshan Fu.
Digital wallets’ market share
The mobile wallet market size will reach US$318.5 billion in 2022, and is expected to grow at a compound growth rate of 18.5% from 2023 to 2032, driven by the widespread use of smartphones and the Internet. According to the International Telecommunications Union, in 2022, 73% of the global population aged 10 and above own a mobile phone. As more people use smartphones, they are increasingly inclined to use digital wallets for a range of transactions, including daily shopping and bill payments.
Mobile wallets provide users with a convenient and secure way to make digital payments for a variety of goods and services. Consumers can easily link bank accounts, credit cards and other payment methods to mobile wallets to complete transactions quickly and easily, reducing the need for cash or physical cards.
From a regional perspective, Asia-Pacific, Europe, North America and other regions are currently the most promising regions for digital wallets. By 2026, digital wallet transaction volume in the above regions is expected to grow by 60%.
Why consumers prefer digital cards and digital wallets
The convenience of digital cards and digital wallets is not only reflected in their ease of use and accessibility, but also in that they provide a faster, safer and more efficient payment experience that meets the needs of modern fast-paced life.
Easy storage and access
Digital cards and digital wallets can be stored on smartphones or other smart devices, such as smart watches, tablets, etc. Clients do not need to carry a physical wallet, credit or debit card, which means that they can simply pay via a device such as their mobile phone. This method not only saves space, but also reduces the number of items users need to carry when going out.
Fast payments
In many retail environments, paying with a digital wallet is faster than traditional credit card or cash payments. For example, through near-field communication (NFC) technology, consumers can quickly complete transactions by simply holding their phone close to a payment terminal, without having to remove the card from their wallet or wait for change.
Reduce the need for cash and physical cards
Digital wallets support a variety of payment scenarios, including physical store shopping, online shopping, and even some public transportation systems. As digital payments become more popular, more merchants are accepting this payment method. This reduces the need for users to carry large amounts of cash or multiple different banks and credit cards, thereby reducing the risk of loss or theft.
Support green consumption awareness
The popularity of digital payment methods has also promoted consumers’ awareness of environmental protection and sustainability issues. Some consumers will choose virtual cards to reduce the use of plastic and metal as well as reduce shipping and handling costs by using digital cards and wallets. This has a positive effect on increasing overall environmental awareness and is an attraction for consumers who care about sustainability.
What are the opportunities for European and American merchants
The rise of digital wallets and digital cards presents a plethora of opportunities for European and American merchants. By embracing these digital payment methods, businesses can not only enhance customer experiences and operational efficiencies but also position themselves effectively in an increasingly digital and eco-conscious market.
Enhanced Customer Experience
The integration of digital payment methods can significantly enhance the shopping experience for customers. Merchants can offer faster checkouts and reduce the waiting time at payment counters, thereby improving overall customer satisfaction.
Wider Market Reach
Digital wallets enable online and mobile commerce, which can extend the reach of businesses beyond geographical boundaries. Merchants can go into a larger market, reaching customers who prefer shopping online or through mobile applications.
Competitive Advantage
In a market where consumers are increasingly tech-savvy and environmentally conscious, offering digital payment options can give merchants a competitive edge. It demonstrates a commitment to innovation and sustainability, appealing to a broader, more diverse consumer base. In China, more than 90% of the population uses mobile wallets instead of cards or cash.
Adaptation to Changing Consumer Behavior
Consumers are going towards digital wallets reflecting a broader change in consumer behavior and expectations. Merchants who adapt to these changes can stay relevant and appealing to the modern consumer.
Silkpay’s POS terminal
This trend requires merchants to integrate various digital payment methods by customized POS terminals especially to accept mobile payments such as Alipay, WeChat Pay, and UnionPay Yunshan Fu in your store.
It is very important for merchants to adapt to this change. In this case, Silkpay can help you with providing one POS terminal which satisfies your needs and your customers’ expectations. The QR code payment method will greatly improve the checkout efficiency and attract a large number of Asian consumers who are familiar with these Chinese mobile payment methods.
Conclusion
With the development of technology and changes in people's consumption habits, the popularity of digital wallets and digital cards is changing the way we pay. While it's too early to say that plastic cards will completely disappear, the trend is clear: digital payment methods are becoming increasingly popular because they are convenient, secure, and more environmentally friendly. By using the POS terminal of Silkpay, merchants can integrate Alipay, WeChat Pay and UnionPay Yunshan Fu. This change can not only meet the needs of global customers, but also make merchants more competitive in the digital market. As this trend continues, we can expect a significant reduction in the reliance on traditional plastic cards.
Source
https://fintechmagazine.com/articles/will-digital-cards-and-digital-wallets-kill-off-plastic
https://www.oceanpayment.com/cn/views/12339/
https://www.gminsights.com/industry-analysis/mobile-wallet-market
>Image by teksomolika</a> on Freepik
About the author: Silkpay
Based in Paris, Silkpay provides omnichannel and secure payment solutions to help physical stores and e-commerce in Europe accept more than 30 of the world's most popular payment methods: Visa, Mastercard, CB, UnionPay, Alipay+, WeChat Pay as well as Asia-Pacific’s major e-wallets.
Silkpay is a winner of the LVMH Innovation Award. The company was also selected as a finalist for the "Money 20/20" Best Startup and in the "MPE Berlin” Startup Awards. Silkpay also won the "Best Fintech" awards from Capgemini and BPCE.
Silkpay helps merchants deliver the smoothest payment experience to their customers. We are a talented and international team driven by a single goal: to improve the customer experience and make payments simple and secure.
