Fintech study predicts global mobile wallet users to reach 4.4 billion by 2024
According to a study published by Merchant Machine, global mobile wallet users will reach 4.4 billion by 2024. The reason behind this growth is the belief in the “safety, security and convenience of the digital wallet” and COVID-19 pandemic.
The growth will continue from the current rate of 44.50% to 51.70% of the global population. Researchers behind the study found in 2015, there were 0.4 billion users, with a revenue of US$ 1,592.2 billion. Since then, the revenue generated by mobile wallet applications has tripled, and by 2022, the figure is expected to reach around US$ 1,639.5 trillion. The increase in mobile wallet’s popularity is due to “the introduction of cutting-edge technology as well as the availability of a wide range of payment technology products.”
The study was also backed by Forbes’ report, which stated that COVID-19 changed the way we shop and the payment methods we use. People are adopting the use of mobile wallets to limit physical contact in public.
Today, the top mobile wallets in use are Alipay with 650 million users, second is Wechat with 550 million users, followed by Apple Pay with 507 million users Google Pay with 421 million users and PayPal with 377 million users. Meanwhile, use of credit cards, bank transfers and cash are decreasing in correspondence.
Another method of payment predicted to increase in popularity among consumers is buy now, pay later schemes like larna or Clearpay. “These methods are particularly popular among Millennials and Generation Z users due to the possibility of splitting the cost into monthly installments.”according to the study.
China ranks first in mobile wallet adoption
The study revealed that 81.1% of Chinese citizens had adopted mobile wallets by 2019 and the figure increased to 87.3% by 2021. This places China with the highest percentage of online or tap-to-pay contactless payments.
Following behind China is Denmark, India, South Korea, Sweden, the U.S., and Canada.
Merchant Machine's study corroborates with Gartner's study that predicts 20% of large enterprises will use digital currencies by 2024.