The global value of digital wallets is projected to experience a growth rate of over 14 percent between 2023 and 2030, reaching an estimated value of over $10tn.
This information was disclosed in the “Global Alternative Online Payment Methods 2024” report, by Market Research.
Digital payment refers to the electronic transactions conducted over the Internet or other electronic channels,
The report indicated that governments worldwide were actively endorsing digital payments to enhance transparency, drive economic progress, and minimize cash usage.
The report predicted a surge in contactless card transactions, reaching over $9tn in value by 2027.
Virtual card transactions are expected to surpass a value of $8tn by 2027, showcasing a remarkable compound annual growth rate from 2022.
Furthermore, the digital wallet sector and global QR code payment transactions are expected to grow from 2023 to 2028, with the value of digital wallets nearly doubling from 2023.
In 2023, Asia-Pacific emerged as the leader in digital payment transaction value and volume, contributing over 50 percent to the global market.
This growth is attributed to various governments in the region actively promoting digital payment methods to reduce cash usage, increase financial inclusion, and drive economic growth.
Further, Market Research revealed that consumer sentiment towards mobile wallets was optimistic, with almost half of the respondents across Europe, the Middle East and Africa expressing belief that mobile wallets will fully replace card and cash payments in the next ten years, as of April 2023.
In the Middle East and North Africa, the projections indicate a significant shift in online transactions by 2025.
It is forecasted that over two-thirds of the total online transaction value will originate from mobile commerce, with digital wallets contributing around 20 percent of online spending.
Despite the promising growth, the industry faces challenges such as a lack of internet infrastructure in remote areas and concerns related to fraud, including identity theft, phishing attacks, and potential misuse of cross-border transactions, the report noted.