Digital wallet spend to cross $10 trillion mark in 2025
Total spend via digital wallets will exceed $10 trillion in 2025, up from $5.5 trillion in 2020, according to Juniper Research.
This will be fuelled by the heightened adoption of digital payments during the coronavirus pandemic.
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In 2025, contactless and e-commerce payments will account for 50% of total wallet spend, from just under 36% in 2020; making these the high priority areas where wallet providers need to maximise their merchant networks, Juniper Research says.
Difficult decisions
The rapid growth in digital wallets availability, coupled with rising adoption, has left merchants with difficult decisions around acceptance.
Juniper Research identifies integration costs for multiple wallets as challenging for merchants, meaning that picking the right wallets to focus on is highly important. If they get it wrong, they will be lumbered with increased costs and limited benefits.
Meanwhile, the increased use of contactless mobile payments during the pandemic, prompted by concerns around cash, has seeded greater wallet use across the payments’ ecosystem.
Contactless adoption will rise, with over 34% of mobile handsets set to use these payments in 2025, up from 11% in 2020.
This means integrating contactless-enabled wallets within checkout processes will be critical to meeting changing user expectations.
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