The FinTech space has experienced significant changes after the pandemic outbreak and will continue to evolve in the upcoming years.
According to the ATOS research, nearly $50 billion will be invested in financial technologies solutions, and, with the growing popularity of digital technologies implementation, these numbers are expected to grow further.
In this article, we’re going to explore the digital wallets – a commodity fintech solution that is no longer nice-to-have but must-have to complete today and is expected to become one of the dominant technologies by 2029.
As a part of our discussion, we’ll find out what benefits this technology poses for the financial industry and ordinary consumers, and, finally, share some great tips on how to launch a secure digital wallet and make the most of this product development.
FinTech Industry Trend for the Upcoming 2022: Digital Wallets
With over 500 innovative tech solutions launched each year in the financial industry, it’s essential to uncover the trending yet prospective technologies on the market and inspect the overall vector of the industry development.
So, along with the commonly known AI and ML technologies, as well as big data analytics, the evolving fintech trend we should make a major focus on today is digital wallet solutions.
According to Global Market Insights, the overall digital wallet market share is expected to grow to $400 billion in 2027.
The increasing smartphone adoption, availability of different digital wallet apps, as well as the rise of various consumer pains and needs, have been stimulating the demand for digital payment solutions entering the industry.
Apart from smartphone availability, the other major drivers for this technology growth include the rise of various e-commerce platforms, supportive governmental initiatives, attractive discounts and cashback offers from digital wallet providers, and many more.
Benefits of Launching a Digital Wallet App
In fact, digital wallet development has plenty of benefits for the service providers and their consumers. From the last one’s point of view, this technology enables simplifying the payment-making process and completing the transactions cash-free, while protecting financial account information and all the passwords.
Additionally, the advanced encryption and virtualization approach ensure that personal information will never leave the consumer’s personal device.
Last but not the least, digital wallets are extremely easy to manage and use, and feature different ways you can conduct a payment. Some of the digital wallets even allow their clients to withdraw cash from ATMs.
On the other hand, there are also various benefits of digital wallet for service providers and financial institutions. For instance, digital wallets are much easier to implement and maintain, they cannot be stolen or lost like regular wallets. The data stored there is secure and encrypted, which may add to the credibility of a vendor. Along with the debit and credit cards, some providers can also include add-on features to encourage more clients to use their services: cryptocurrency, insurance cards, boarding passes, concert tickets, coupons, and gift cards, virtual IDs, and driver licenses, and many more. Finally, by investing in a secure digital wallet, you can implement it just about anywhere and use it for nearly any transaction, no matter online or in-store! Main Challenges of Building & Maintaining a Digital Wallet App Once you know why this technology is a great investment option, you’re more than likely to initiate the digital wallet development. However, before you get started, it’s essential to weigh all the pros and cons of this fintech trend. Just like we’ve mentioned before, the core advantage of a high-quality, secure digital wallet is its convenience and ease of use. At the same time, there are plenty of pitfalls you might face during and after you create a digital wallet, that can significantly impact the product performance: Fraud and security. It’s essential to focus on constantly improving the mobile wallet security and eliminating the risks of hacking and security breaches, as they can hit not only the reputation of an organization but the significant financial losses as well. Awareness and adoption. Despite the high popularity of digital payment technologies, some people are still uncertain about their security, data privacy, and many more. For this reason, it’s essential to invest in the popularization of a current trend, as well as explain the basics of its usage and the benefits this payment method can bring to consumers. Merchant accepting. If the businesses are not ready to support the contactless payment methods, neither the clients will. That is why providing support on the mobile wallets adoption stages is essential to provide the customers with multiple payment options. Compliance with legal requirements and standards. For successful digital wallet development, it’s also important to ensure it is compliant with all the regulations. This not only enables performing the first-class services to its clients but also in the best interest of the companies themselves. Device compatibility. It’s not enough to simply create a digital wallet to make customers start using it – you should also maintain the app so it could be easily utilized across multiple devices on different operating systems. Wider functionality. The core idea of mobile wallets implies their usage for different purposes, including payment transactions, document carrying, and more. To stay at the top among competitors, it’s essential to adapt technologies that go beyond the standard payment approaches and enable a wider range of different functions included in the app.
US The FinTech space has experienced significant changes after the pandemic outbreak and will continue to evolve in the upcoming years. According to the ATOS research, nearly $50 billion will be invested in financial technologies solutions, and, with the growing popularity of digital technologies implementation, these numbers are expected to grow further. In this article, we’re going to explore the digital wallets – a commodity fintech solution that is no longer nice-to-have but must-have to complete today and is expected to become one of the dominant technologies by 2029. Safe and Secure Digital Wallet As a part of our discussion, we’ll find out what benefits this technology poses for the financial industry and ordinary consumers, and, finally, share some great tips on how to launch a secure digital wallet and make the most of this product development. FinTech Industry Trend for the Upcoming 2022: Digital Wallets With over 500 innovative tech solutions launched each year in the financial industry, it’s essential to uncover the trending yet prospective technologies on the market and inspect the overall vector of the industry development. So, along with the commonly known AI and ML technologies, as well as big data analytics, the evolving fintech trend we should make a major focus on today is digital wallet solutions. According to Global Market Insights, the overall digital wallet market share is expected to grow to $400 billion in 2027. The increasing smartphone adoption, availability of different digital wallet apps, as well as the rise of various consumer pains and needs, have been stimulating the demand for digital payment solutions entering the industry. Apart from smartphone availability, the other major drivers for this technology growth include the rise of various e-commerce platforms, supportive governmental initiatives, attractive discounts and cashback offers from digital wallet providers, and many more. Benefits of Launching a Digital Wallet App In fact, digital wallet development has plenty of benefits for the service providers and their consumers. From the last one’s point of view, this technology enables simplifying the payment-making process and completing the transactions cash-free, while protecting financial account information and all the passwords. Additionally, the advanced encryption and virtualization approach ensure that personal information will never leave the consumer’s personal device. How to Build Secure Digital Wallet Last but not the least, digital wallets are extremely easy to manage and use, and feature different ways you can conduct a payment. Some of the digital wallets even allow their clients to withdraw cash from ATMs. On the other hand, there are also various benefits of digital wallet for service providers and financial institutions. For instance, digital wallets are much easier to implement and maintain, they cannot be stolen or lost like regular wallets. The data stored there is secure and encrypted, which may add to the credibility of a vendor. Along with the debit and credit cards, some providers can also include add-on features to encourage more clients to use their services: cryptocurrency, insurance cards, boarding passes, concert tickets, coupons, and gift cards, virtual IDs, and driver licenses, and many more. Finally, by investing in a secure digital wallet, you can implement it just about anywhere and use it for nearly any transaction, no matter online or in-store! Main Challenges of Building & Maintaining a Digital Wallet App Once you know why this technology is a great investment option, you’re more than likely to initiate the digital wallet development. However, before you get started, it’s essential to weigh all the pros and cons of this fintech trend. Just like we’ve mentioned before, the core advantage of a high-quality, secure digital wallet is its convenience and ease of use. At the same time, there are plenty of pitfalls you might face during and after you create a digital wallet, that can significantly impact the product performance: Fraud and security. It’s essential to focus on constantly improving the mobile wallet security and eliminating the risks of hacking and security breaches, as they can hit not only the reputation of an organization but the significant financial losses as well. Awareness and adoption. Despite the high popularity of digital payment technologies, some people are still uncertain about their security, data privacy, and many more. For this reason, it’s essential to invest in the popularization of a current trend, as well as explain the basics of its usage and the benefits this payment method can bring to consumers. Merchant accepting. If the businesses are not ready to support the contactless payment methods, neither the clients will. That is why providing support on the mobile wallets adoption stages is essential to provide the customers with multiple payment options. Compliance with legal requirements and standards. For successful digital wallet development, it’s also important to ensure it is compliant with all the regulations. This not only enables performing the first-class services to its clients but also in the best interest of the companies themselves. Device compatibility. It’s not enough to simply create a digital wallet to make customers start using it – you should also maintain the app so it could be easily utilized across multiple devices on different operating systems. Wider functionality. The core idea of mobile wallets implies their usage for different purposes, including payment transactions, document carrying, and more. To stay at the top among competitors, it’s essential to adapt technologies that go beyond the standard payment approaches and enable a wider range of different functions included in the app. Without any doubt, digital wallet development features plenty of different challenges to resolve. However, with all those factors considered and implemented, it’s more than possible to create a competitive, high-quality product that will surely compel consumers to switch to mobile wallets technology.