The mobile payments industry is growing rapidly and the use of digital wallets is surging, both overseas and here in the U.S. In an article published earlier this week, CardNotPresent.com reported that digital wallets will account for $1.35 trillion in spend worldwide this year, which is a 32 percent increase from last year.
In the majority of Asia-Pacific countries including China, Alipay and WeChat dominate the market. However, Apple Pay, PayPal, and a few others are gaining ground across the globe and are expected to be the default payment mechanism in North America as well, according to recent findings by U.K. – based Juniper Research.
Americans are adopting this newer mobile payment technology while becoming increasingly comfortable transferring money via digital wallets. The financial services comparison site, finder.com, said its research showed that 43 percent of people that were polled used a mobile wallet to send or receive money in 2016, which is an estimated 106.6 million adults. Additionally, 31 percent said they use digital wallets at least once a month.
Finder.com money expert, Michelle Hutchison, claims that mobile payments and the apps associated with them are making it more convenient to purchase goods and services. “We’re not surprised by the popularity of digital wallets. Most of us carry our phones with us everywhere we go and new mobile apps are making it easier than ever for it to be the only thing you leave the house with.”
Not only is paying using this method convenient for consumers, but it can also save them money. Hutchison adds, “Traditionally, U.S. banks have charged high fees for transferring money from your bank account to other people but payment apps allow you to sidestep those fees by removing the bank as the middleman.”
With the recent trends in the payments industry, specifically the emergence of digital wallets, merchants should be committed to catering to the needs of their customers. Keeping your customers in mind and installing POS and payment terminals that accept multiple forms of payments, including digital wallets, is definitely a step in the right direction.