Merchant Machine recently released a report that predicted mobile wallets to be used by 4.4 Billion people by 2024. Merchant Machine’s findings show the global pandemic propelled the popularity of digital wallets and researchers expect the numbers to grow from 44.50% of the population in 2020 to 51.70% by 2024.
Half the World’s Population Will Leverage Mobile Wallets in 2 Years, Study Says
Since the outbreak of Covid-19, mobile wallet use has increased tremendously. Merchant Machine published a study that predicts continued growth. The researchers note that since 2015, the total revenue generated by mobile wallet applications has tripled, and by 2022, it’s expected to be around $1,639.5 trillion.
“The safety, security, and convenience of digital wallets, as well as the popularity of smartphones and general digitalisation of society, were among the main reasons for the popularity of this method,” Merchant Machine’s study details. Further, this research provides an explanation of the top mobile payment platform in 2022.
Alipay is the most used mobile wallet worldwide, with over 650 million active users. Wechat is second with around 550 million users by 2022. Apple Pay (507M), Google Pay (421M), Paypal (377M), followed closely by Wechat and Alipay. While debit and credit cards dropped, cash on delivery, bank transfers, and card transactions all declined in popularity, mobile wallets such as buy now, pay later, Apple Pay (507M), GooglePay (421M), or Paypal (377M) increased their use.
“Besides mobile wallets, the only method of payment that will see an increase in popularity among consumers is buy now, pay later schemes such as Klarna or Clearpay,” the study notes. “These methods are particularly popular among Millennials and Generation Z users due to the possibility of splitting the cost into monthly installments.”
China takes the top position in terms of adoption, Gartner expects 20% of enterprises to use digital currencies by 2024
China was the country with the greatest adoption rate of mobile wallets. China followed South Korea, India, Sweden and the United States. “The common usage of contactless payments in China is down to society utilising tech solutions in every aspect of their life,” the researchers explain.
Merchant Machine’s researchers do not expect the growth to stop and by 2024, estimates expect 4.4 billion or roughly half of the global population will be using mobile wallet applications. The study’s findings are aligned with Gartner’s research that estimates 20% of enterprises or large corporate entities will use digital currencies for payments by 2024.
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