According to a new report published by AkVis Intelligence, titled, “Digital Wallet Market by Type, Technology, Ownership, Application: Global Opportunity Analysis and Industry Forecast, 2024–2032,” the Global Digital Wallet market size was valued at USD 10.88 Billion in 2023, and is projected to reach USD 92.19 Billion by 2032, registering a CAGR of 26.80% from 2024 to 2032. Digital wallets are online tools that enable users to safely store their financial details and conduct digital transactions. They allow customers to input their debit or credit card information, bank account details, or cryptocurrencies, offering a convenient method to digitally make payments or send money.

Digital wallets provide a convenient solution for consolidating all your payment cards and associated details in one location, eliminating the necessity of carrying multiple physical cards or fretting about leaving them behind at home.  Digital wallets use high-level security measures like biometric authentication, tokenization, and encryption to safeguard payment information and transactions, ensuring a safer alternative to physical cards and cash.

With the rise in smartphone usage, many people now have the ability to use digital wallet apps on their devices. Smartphones have made it easy for users to access the internet and effortlessly download and use digital wallet apps, allowing people to conveniently manage their finances and make digital payments on their phones. The use of digital wallets has been even more made easier by the widespread availability of fast mobile internet connections. Users can quickly and securely perform transactions with seamless and reliable internet connectivity.

Contactless transactions, like tapping to pay or using mobile payments, eradicate the necessity for physical interaction with payment terminals or the exchange of cash. Digital wallets offer a more secure and cleaner alternative for making transactions due to their ability to make contactless payments. Contactless payments provide a quicker and more convenient way to pay by allowing users to easily tap their smartphones, smartwatches, or contactless cards on payment terminals to make a transaction, without having to touch cards or input a PIN. Contactless payment technology is gaining more popularity in physical stores and e-commerce platforms with increased adoption.

Global Digital Wallet Market, Segmentation

The Digital Wallet market is segmented based on Type, Technology, Ownership, Application, and region.

Type:

Proximity payments allow users to easily and swiftly conduct transactions by tapping or waving their smartphones, wearable devices, or contactless cards near payment terminals, providing a convenient method. Customers find proximity payments very attractive due to their convenience and speed. Close-range payment technology has been widely adopted and embraced in different sectors and stores. Numerous companies have embraced contactless payment terminals, creating a more convenient experience for customers utilizing digital wallets based on proximity.

Recently, there has been a surge in the adoption of contactless payment methods, with an increasing number of consumers opting for this more convenient way to make transactions. This shift is motivated by factors such as concerns about cleanliness, speed, and ease. Proximity payments often come with additional security measures like tokenization and biometric authentication, such as fingerprint or facial recognition, to bolster the safety of transactions.

Application:

The growth of e-commerce has significantly increased as more people are turning to online shopping because of its convenience and accessibility. Digital wallets provide a convenient and secure method for making online purchases, allowing customers to make purchases easily. The rapid expansion of mobile shopping has increased the popularity of digital wallets in the e-commerce sector. Digital wallets offer a convenient method for smartphone users to make mobile payments as the number of online shoppers continues to increase.

Digital wallets often have features like one-click payments, allowing users to save their payment information and complete transactions with just one click or tap. This effective payment procedure reduces barriers and saves time for customers, resulting in increased sales and improved customer satisfaction. Safety concerns are important in e-commerce transactions. Digital wallets enhance the security of online transactions by utilizing methods such as tokenization and biometric verification, thereby minimizing the risks associated with sharing credit card details on the web.

Region:

The smartphone usage in Asia Pacific has grown significantly, with a large number of people in countries like China, India, and Southeast Asia using smartphones for tasks like financial transactions. This has led to an increase in e-commerce due to higher internet usage and rising disposable incomes in these nations. The increased popularity of digital wallets in the area is due to the strong dependence on online shopping transactions with digital payments, leading to their prevalent presence in the market.

Some of The Active Market Players Are-

• • Apple Inc. (United States)
  • Google LLC (United States)
  • Tencent (China)
  • PayPal (United States)
  • Samsung Electronics (South Korea)
  • Amazon Web Services, Inc. (United States)
  • Visa Inc. (United States)
  • American Express (United States)
  • Airtel (India)
  • Mastercard (United States)
  • Alipay (China)
  • AT&T (United States)
  • DAMEN ePayment (Netherlands)
  • KFH (Kuwait)
  • WeChat Pay (China), and Other Active Players.

Key Industry Developments

• • May 2024: Google launched its digital wallet app, Google Wallet, in India. This app lets users safely store personal info like loyalty cards, transit passes, and IDs. Google has partnered with 20 top Indian brands, including PVR, Flipkart, and Dominos, to provide various services through Google Wallet.
  • March 2024: MobiKwik, the fintech company, rolled out a new feature called 'Pocket UPI' on its platform that enables users to make UPI payments through the MobiKwik Wallet without the need to link their bank account. Pocket UPI also boasts "uninterrupted" payment processing, even during bank downtimes, to ensure users can make timely transactions around the clock.

Key Findings of the Study 

• • Global digital wallet market growth is driven by the increasing adoption of smartphones and internet connections.
  • Digital wallets provide a safer and more hygienic option for conducting transactions with their contactless payment capabilities.
  • Many businesses have adopted contactless payment terminals, making it easier for customers to use proximity-based digital wallets.
  • A rapid pace of digitalization is being adopted by numerous countries in the Asia Pacific region.