A global study by Boku has found that emerging markets in Latin America and Africa and the Middle East are set to see the largest uptake in mobile wallets by 2025.
The study – labelled as the biggest study of mobile wallets in the world – was led by the PayTech firm and also included data from Juniper Research. It found that 7 of the top 10 fastest growing countries for mobile wallet purchases hailed from the emerging market regions.
Alongside the growth in mobile wallets, the study found that when it came to specific wallets, the emerging markets is where the growth is set to occur. By 2025, MercadoPay of Brazil, SadaPay of Pakistan and PicPay of Brazil are anticipated to be the fastest growing mobile wallets.
Europe – which lags behind emerging markets when it comes to mobile wallets – is expected to be home to four of the ten fastest-growing countries for mobile payment transactions by 2025. Russia, Germany, Sweden and Portugal projected to growing the fastest in Europe, while France, Norway, Spain, Denmark, the UK and the Netherlands were also among the top 20 countries for payment transaction growth.
The study also revealed that it is expected one in two people worldwide will use a mobile wallet by 2025.
The growth of mobile wallets has been attributed to the displacement of cash, bank transfers and card transactions in favour of mobile wallets as consumers seek more convenient and secure payment methods. In addition, the report found many consumers in emerging markets, particularly younger ones, are opting for the use of mobile wallets due to their ease of access.
Boku found also that between 2020 and 2025, the number of mobile wallets that transact over $1bn per year will climb by 27%.
Boku CEO Jon Prideaux said, “eCommerce payments continue to be the primary driver of digital wallet usage around the world. This is a result of outdated payment types, such as cards and cash, not being designed for eCommerce. “onsumers are gravitating to mobile-first payment methods and “super-apps” that offer a better user experience, better security and better rewards.
“If merchants want to attract, convert, and retain mobile-first consumers, they need to accept the mobile-first payment methods they have and use. For European merchants with global ambitions, this requires a new strategy for payment acceptance that goes well beyond cards and into mobile-first payments.”
Another report by payment service provider Emerchantpay recently discovered digital wallets will account for £11bn in online consumer spending by 2026.
Copyright © 2021 FinTech Global