Top 5 Digital Wallet Trends to Keep an Eye on in 2023

1
What Lies Beyond the Cashless 5 Digital Wallet
Trends for 2023
2
Top Digital Wallet Trends to Bet On for 2023

• Buy Now, Pay Later Gaining Popularity
• The Emphasis on Smart Speaker Payments
• Social Shopping
• Biometric Authentication
• Cryptocurrency Wallets

3
What Lies Beyond the Cashless 5 Digital Wallet
Trends for 2023
The concept of payments has witnessed a
tremendous transformation since the late 1990s
when innovative payment methods began to appear.
Cashless payments have evolved from cards to
digital wallet solutions to fiat currency to
cryptocurrency with each up-gradation in
financial technology. Digital currency has
become more prominent than its physical form
since the inception of e-wallet platforms that
laid out solutions for the problems of cash and
made payment experiences more convenient. The
mobile wallet market value is projected to expand
from 220 billion in 2021 to 970 billion in 2030.
This massive growth will be backed by telecom
e-wallet solutions, banks, fintech companies,
digital-only solutions, Near Field Communication
(NFC), and other advanced payment technologies.
The increasing demand for Central Bank Digital
Currency (CBDC) and cashless, cardless, secure
payments has led to innovations in digital
wallets in recent years. Lets see some top
digital wallet trends that will dominate the
financial services industry in 2023.
4
Buy Now, Pay Later Gaining Popularity
Buy now, pay later (BNPL) services have recently
become wildly popular because they provide higher
accessibility to shoppers and boost AOV (Average
Order Value) for merchants. Customers can use
BNPL to make big-ticket purchases without
endangering their monthly budget and raising
credit card debt. Businesses and retailers can
offer this POS (Point-Of-Sale) financing option
to empower shoppers with greater purchasing power
for the goods that they want the same day during
uncertain financial times. The customer-centric
approach leads the current fintech ecosystem to
rethink the lending landscape. Younger
e-commerce customers prefer the BNPL option in
their digital wallet solutions since it allows
interest-free, extra-flexible, and installment
payment options. In addition, merchants can gain
a competitive advantage in their market with
improved brand loyalty and customer acquisition.
5
The Emphasis on Smart Speaker Payments
Smart speakers or home assistants have seen
considerable growth over the years. It allows
users to speak with them, give commands, and
complete tasks, such as booking a cab, ordering
food, and playing a TV show. Users are
increasingly getting used to the utmost
convenience of making direct payments through
voice assistance for frequently used services and
goods, like groceries, home care products, and
commutes. Currently, the number of users making
payments using smart speakers is less because of
security concerns, but it is likely to become
more secure with time. Smart speakers also
facilitate IoT payments requiring buyers to
authorize a payment plan based on sensors and
automatic data sources. For example, telecom
e-wallet solutions allow users to renew
subscriptions through smart speaker commands.
6
Social Shopping
Smartphone users spend a significant part of
their day scrolling social media applications. It
makes an excellent opportunity for brands to snag
more sales. Social shopping is an alternative to
e-commerce websites for accessing product
descriptions and reviews on social media. Digital
wallets play a crucial role in providing payment
gateways and methods for social
shopping. Merchants can strengthen their social
media marketing game to speed up conversion
rates. Users can easily access brands, preferred
payment methods, and customer service while
casually navigating through social media.
7
Biometric Authentication
Using ATM-like tangible systems will probably
become a norm shortly. The number of transactions
via digital wallet solutions has gone through the
roof. As a result, many fintech start-ups, banks,
and key e-wallet platforms are considering
employing biometric authentication for every
payment and money transfer. Digital wallets can
leverage biometric authentication to enhance
security by preventing unauthorized access to
cards, e-wallets, bank accounts, and other
confidential information. The company would store
the encrypted code that describes collected
biometrics, like face, fingerprint, palm print,
or retina. Digital wallets can use decentralized
identity applications to store and share these
data points when needed.
8
Cryptocurrency Wallets
Currently, tens of millions of people use
cryptocurrency wallets created on blockchains.
The past couple of years have observed a steep
rise in crypto wallet users despite the ups and
downs in the market. This user spike can be
attributed to record profits, minimal transaction
fees, and top-notch security. Cryptocurrency
payments involve only a small network cost, since
no third party is required. The transaction
through a cryptocurrency wallet doesnt involve
real coins. Instead, its signified by the
transaction record on the blockchain and the
following change in the wallet balance. Besides,
digital currency will probably get recognized as
legitimate by major governmental bodies and
central banks across the globe in the upcoming
years.
9
Stay Relevant in This Fast-changing Digital
Financial Ecosystem
The introduction of path-breaking and innovative
financial technology in this era of a cashless
economy has led to a dramatic shift in consumer
expectations and the functioning of financial
transactions. Digital wallet solutions have
quickly gained wide acceptance among industries
and markets as the most preferred way for
enterprises to retain customers. E-wallets have
come a long way, but undoubtedly, they will
continue to dominate the market with their more
secure, productive, and convenient versions over
the upcoming years. Panamaxs MobiFin Mobile
Wallet Solution leverages the latest technologies
to help you create your customized digital
ecosystem and launch a mobile wallet tightly
linked to your core system.
10
Thank You