Keeping up with the customer: The rise of mobile payments systems
July 11, 2023
The use of digital wallets continues to accelerate at a high speed. At the point of sale (POS) alone, digital wallets are expected to grow at 15% compound annual growth rate (CAGR) from 2022 to 2026. With that in mind, businesses face a critical question: are your payments keeping up with digital transformation?
More consumers than ever – including your customers – are using mobile payment systems to buy the goods and services they want. Are you making the most of advanced technology, protecting customers from security threats and giving them the safe, convenient and innovative payment experience they expect?
For the first time, banks and credit unions can use data and technologies that deliver a truly unified experience across all channels while putting the customer at the center of every process.
Fueled by steady growth
The use of digital wallets remains among the fastest-growing payment methods. Our 2023 Global Payments Report (GPR 2023) shows that digital wallets accounted for 49% of global e-commerce spending and 32% of POS spending in 2022. In fact, 37 of the 40 markets covered in GPR 2023 saw double-digit e-commerce growth in the past year.
The rise of mobile payments has played a significant role in driving the adoption of digital wallets. In 2020, mobile payment transaction volume worldwide exceeded $1 trillion, and it is expected to continue growing in the coming years. According to Statista, the number of digital wallet users globally is projected to reach over four billion by 2026.
In this dynamic environment, businesses are finding ways to be more agile and adapt their payment strategies. Otherwise, they risk being left behind in an increasingly competitive landscape.
Business banking reimagined
Digital wallets provide a convenient way for consumers to store their payment information securely in one place. They are easy to use once set up, convenient with no scrabbling around searching for a leather wallet full of plastic and the purchase process is quick whether at the POS or online.
Among the most widely used mobile systems are Apple Pay and Google Pay.
- 535.9 million Apple Pay users in 2022
- 150 million Google Pay users across 42 global markets using the application each month
Apple Pay allows customers to make purchases using an iPhone, iPad or Apple Watch, and Google Pay uses a range of cards saved to your Google account, which can be stored on an Android device. Both payment systems can be held as digital wallets on mobile phones, which can then be used to transfer funds for in-store purchases or through e-commerce transactions.
Most importantly, digital wallets prioritize security by employing encryption and tokenization techniques to protect payment information. They also generate unique transaction codes or virtual card numbers, ensuring users' actual card details remain hidden from merchants. And if a mobile phone is accessed through biometrics, your customers are offered another layer of security.
Give your business a boost
Digital wallets allow businesses to accept various payment methods including credit and debit cards, mobile payments and even cryptocurrencies. By offering diverse payment options, businesses can cater to the preferences of a broader customer base, potentially increasing sales and customer satisfaction.
Ease, speed and security advantages are just as advantageous for you as they are for your customer. The ability to accept Apple Pay or Google Pay transactions shows you’re a business that looks to keep up with the advances in commercial technology.
By providing an easy and quick payment process, businesses can improve customer satisfaction and loyalty. Additionally, digital wallets often allow businesses to store customer information securely, enabling personalized experiences and targeted marketing efforts.
Looking towards the digital future
The introduction of mobile payment systems paves the way for richer data and more intelligent solutions, empowering businesses of all sizes to offer speedy and secure transactions while unlocking groundbreaking features like password-free checkout.
But as technology advances, so will consumer expectations. By partnering with global payment leaders , merchants can stay ahead of the curve and deliver solutions that set them apart from their competitors, boost conversion rates and minimize expenses.
The future of payments is here – embrace it and see how your business could thrive with Worldpay.
The use of digital wallets remains among the fastest-growing payment methods. As more consumers adopt mobile payment systems like Apple Pay and Google Pay for a convenient shopping experience, businesses must keep up with this digital transformation, providing customers with advanced technology that can protect them from security threats while offering innovative payment methods.