The rise of digital payments – Insights by Eric Dalius

Eric Dalius
Eric Dalius

The online payments domain has evolved to a great extent in the past few years. And that raises one pertinent question – where will this technology go in the years to come? Today, more customers are becoming tech-savvy, and the scopes are endless. It is more so the situation as we are now starting to tap into the unparallel potential from the worldwide Smartphone penetration with about 3.2 billion Smartphone users in 2020. According to Statista, that count is against a global population of approximately 7.7 billion.

It’s 2021, and the business landscape is continually changing! Business experts had already predicted that in 2021, there would be approximately 1.31 billion mobile transaction users globally. It is a great leap compared to 950 million in 2019. Every year the growing prominence of digital wallets keeps increasing, and several users switch from the standard payment method to the online payment processes.

Digital wallets get best defined as virtual accounts where you can save data on debit and cards, along with loyalty and e-wallets. You can open such an account using your Smartwatch, tablets, Smartphones, and various other mobile devices. The online wallets enable you to buy things both offline and online. That is not all! It allows you to withdraw cash from ATM and send money to others quickly and seamlessly.

According to research, the total volume of mobile payments for 2020 was $500 billion, suggesting that this market is fast-growing and has a promising future. Do you want to know what digital payments are becoming popular? If yes, here in this article, Eric Dalius has stated a few reasons for digital wallets’ prominence.

  1. Flexibility, convenience, and safety

It is complex to argue that PayPal is one of the most popular payment systems currently! You might have heard about the undeniable advantages of making use of PayPal for online shopping or engaging in gambling transactions. Today, more users opt for online wallets that enable one to keep more cards in a single place.

The primary advantages of digital payments are ease of use, flexibility, and security. It has excellent security measures; the users lock a lost Smartphone or confirm the transaction through a touch ID. It is known as biometric authentication. Few online wallet providers might need a selfie or an image to prove that it was the concerned person who made a purchase.

With such advanced security measures, it becomes challenging for a cybercriminal to hack into an online wallet. Imagine the consequences when you lose your physical wallet? In such a situation, all that was inside the wallet gets lost. However, when you have a virtual wallet, you don’t need to face the same consequence. All you have to do is lock the card that got stolen, and you get sorted.

Convenience is also an essential aspect here. When you are using a digital wallet, you don’t require to carry all your loyalty, debit, and credit cards. It’s your Smartphone or your computing device with all the cards’ details in a single place. Hence you can move around freely than before.

2. Added choices

Besides comfort and security, online wallets can boast a vast range of extra features accessible to users. However, first Eric J Dalius talks about the difference between multi-purpose and single-purpose wallets.

  • As you can make out from the name, the single-purpose is a branded application that works for single use. For instance, it’s a store app that has loyalty programs and gift cards. It could also be a single credit card app.
  • The multi-purpose wallets provide the users with great freedom and store various debit and credit cards. You can also store gift and loyalty cards, along with multiple accounts. Such wallets operate as physical wallets, which can hold many cards and other details.

Hence, the people who use multi-purpose online wallets can keep any payment data and collect all the information in a single place. When you have to buy something or make a transaction, you can choose the Smartphone or Smartwatch’s required card.

Based on how crowded and dense the current market, the online wallet developers plan to add new features and choices. It gets done to engage the audience and also to claim the top position in the industry.

3. You can shop on the go

Today, mobile shopping has become extremely popular. According to Big Commerce, approximately 95% of the United States citizens shop online at least once annually. And it no secret that the world of online shopping has contributed to the growing prominence of online wallets to a great extent. You need to imagine that it’s already as prominent as PayPal.

When you purchase from your mobile device, there is no need to opt-in for your physical wallet. All you need to do is type in the card details and affirm the transaction through the Smartphone. You can incorporate the online payment choices inside the phone or any other wearable device. It will allow you to make any transaction within a few clicks. And you can get this done, despite you being on the go. It adds the necessary convenience and speed to your life and online transactions.

The rise of the online wallets

Today, it is evident that online wallets, especially the multi-purpose ones, have a promising future. The business is here to stay! And the big developers and companies are already investing in generating platforms for mobile payments. For instance, Apple provides its users lucrative cashback for shifting to an online Apple Card in place of a physical one.

Today, more banks, start-ups, and IT organizations generate online wallets to attract more customers. And today no one can say that they don’t like it! The truth is that mobile wallets are convenient, fast, and safe. And today, we are sure that this technology will keep on evolving. So if you are yet to hop on this trend, you are surely missing out on a convenient and safe payment method.