Digital wallet users are set to exceed 4.4 billion across the globe by 2025, according to a new study by Juniper Research.
The report said the figure is set to rise exponentially from 2.6 billion in 2020.
The study found that mobile wallets are leading this 70% growth, as mobile payments rapidly scale across geographical and vertical markets.
The increasing alignment between in-person and remote commerce channels is leading to greater use of mobile wallets than ever before, with online wallet use confined to high-value purchases or complex bill payments.
The research also found that QR code payments will account for 40% of all digital wallet transactions globally in 2025; a fall from 47% of transactions in 2020. QR code payments are presently playing a leading role, due to their ease of use and acceptance, which makes them a critically important area for wallet use.
However, over the next five years, the evolution of features such as card acceptance via NFC smartphones will begin to close the ease of acceptance gap.
“In developed markets, mobile wallets facilitate card payments, but in emerging markets, wallets in places have bypassed cards entirely. Wallet providers in developed markets need to focus on building acceptance and analytics features, in order to boost their appeal in a card-centric environment,” said Research co-author, Nick Maynard.
The report advised merchants to undertake reviews of their processes to ensure that they are offering a highly capable payment experience via their mobile app, which should be inclusive of a seamless checkout process, the correct mobile wallet integrations and high levels of security.