According to a recent Merchant Machine study, mobile wallets are projected to have 4.4 billion users by 2024. The Merchant Machine study shows that the global pandemic has contributed to the growing popularity of digital wallets, and researchers expect the number to grow from 44.50% of the population in 2020 to 51.70% by 2024.
Half of the world’s population will be using mobile wallets in 2 years, study says
Mobile wallet use has increased significantly since the start of the Covid-19 pandemic, and the study published by Merchant Machine predicts that growth will continue. The researchers note that total revenue from mobile wallet apps has tripled since 2015 and is expected to be about $1,639.5 trillion by 2022.
“The security, reliability and convenience of digital wallets, as well as the popularity of smartphones and the general digitalization of society, have been some of the main reasons for its popularity,” the Merchant Machine study says. In addition, the study talks about the top mobile payment platforms in 2022.
Today, Alipay mobile wallet leads the world with 650 million users, and Wechat is second in popularity with 550 million users in 2022. Alipay and Wechat are followed by Apple Pay (507 million), Google Pay (421 million) and Paypal (377 million). While credit cards, debit cards, wire transfers, and cash on delivery have declined in use, “buy now, pay later” schemes have grown along with the popularity of mobile wallets.
“Aside from mobile wallets, the only payment method that will be increasingly popular with consumers is a ‘buy now, pay later’ scheme such as Klarna or Clearpay,” the study notes. “These methods are especially popular with millennials and Generation Z because of the ability to split the cost into monthly payments.”
China ranks first in adoption, Gartner expects 20% of businesses to use digital currencies by 2024
In terms of mobile wallet adoption, China ranked first in the share of digital or contactless payments. China is followed by Denmark, India, South Korea, Sweden, the U.S. and Canada. “The widespread use of contactless payments in China is due to the fact that society uses technological solutions in every aspect of its life,” the researchers explain.
The Merchant Machine researchers don’t expect the growth to stop, and by 2024, an estimated 4.4 billion or about half of the world’s population will be using mobile wallet apps. The study’s findings are consistent with Gartner research that 20% of businesses or large corporations will use digital currencies for payments by 2024.
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