A Juniper Research study has found that nearly 2.1 billion consumers globally will use a mobile wallet to make a payment or send money in 2019, up by nearly 30% on the 1.6 billion recorded at the end of 2017.
And whilst contactless card payments were far more prevalent than NFC mobile payments in many markets, that will change over time because mobile wallets enable both online and offline payment options. Meanwhile, a number of wallets, including Orange in France, have augmented payments offerings with banking services in a bid to deliver a holistic financial service for consumers.
The report assessed the capabilities and prospects of nearly 20 leading mobile wallets.
- PayPal, which has begun offering contactless payments instore in the U.S., had the greatest opportunities to develop a converged wallet on a worldwide basis, closely followed by China’s Alipay.
- QR code-based in-store payments had seen astonishing levels of adoption in China, successful use cases in Europe and North America were likely to be limited to ‘closed-loop’ wallets such as those deployed by Starbucks and WalMart.
- Greater security offered by NFC-based wallets, which include tokenized credentials and, increasingly, biometric authentication, make them more attractive to both consumers and merchants.