Mobile wallet use growing worldwide, reveals data report
Digital or mobile wallet payment was the most popular POS payment approach globally in 2020, grabbing 21.5% of transaction payment market share in 2020.
The boom was due to the COVID-19 pandemic and consumer fear of paper banknotes related to possible virus transmission, according to data released by TradingPlatforms.com.
By 2024 mobile wallet use will make up a third of all POS transactions worldwide, according to a blog post on the data findings.
The number of consumers using mobile wallets to make payments jumped from around 900 million to 1.48 billion in the pandemic timeframe and, in 2020, 25.7% of all POS payments were made using mobile wallets, according to the Global Payments Report 2021. In three years, the figure is expected to jump to 33.4%.
The data also revealed mobile payments made up 44.5% of all e-commerce transactions last year — double that of credit cards and three times more than debit card payments. Credit cards and debit cards are expected to hold the same market share in the next two years, making around 22% of POS payments each. However, cash transactions projected to experience a significant dip, from 20.5% in 2020 to 12.7% in 2024.
Source: Retail customer experience