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The digital payments environment has been shaped by notable changes and transformations in the e-wallet business in recent years. Customers are growing more and more receptive to the efficiency and convenience that E-Wallets provide as technology develops. The increasing usage of mobile wallets, which enable users to safely store credit card information on cellphones, is one notable trend. The demand for simple transactions and the convenience of making purchases while on the go is what is driving the switch from regular means of payment to digital wallets.
Advanced authentication mechanisms have been integrated into E-Wallets since safety precautions have become a top priority for users. The use of biometric authentication—such as facial recognition and fingerprint scanning—has grown in popularity, improving the general security of online transactions. This movement allays consumer concerns over the security of internet payments and supports E-Wallet platforms. The development of E-Wallet capabilities beyond simple transactions is another noteworthy trend. Providers of e-wallets are broadening their offerings to provide a complete financial ecosystem. This covers things like investing possibilities, tools for creating budgets, and even microloans.
E-Wallets want to become vital tools for users' managing their finances by developing into diverse financial platforms that encourage user engagement and loyalty. The market for e-wallets has also been impacted by the rise of cryptocurrencies as a feasible form of payment. Cryptocurrency trading and storing are now supported by several digital wallets, giving clients more options for handling their digital assets. This integration reflects how the financial industry is changing and how cryptocurrencies are becoming accepted as legitimate forms of currency.
In the E-Wallet market, there is a general tendency toward emphasizing a seamless user experience. To guarantee a user-friendly experience, providers continuously improve their transaction flows, onboarding procedures, and interfaces. The E-Wallet business is growing consistently because of this emphasis on the user experience, which draws in new customers and keeps the ones it already has. Because of this, E-Wallet providers must navigate a challenging regulatory environment and modify their business practices in accordance to changing policies and regulations.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Opportunities | The initiative to promote digital payment options |
| Market Dynamics | Increased adoption of smartphones and increased e-commerce sales |
E wallet Market Highlights:
E-Wallet Market Overview
The E-Wallet Market size is projected to grow from USD 124.6 Billion in 2024 to USD 590.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 22.10% during the forecast period (2024 - 2032). Additionally, the market size for E-Wallet was valued at USD 103.2 Billion in 2023.Â
Increased adoption of contactless payments and the process being faster as compared to cash transactions are the key market drivers enhancing the growth of market.
Source: Primary & Secondary Research, MRFR Database, and Analyst Review
E-Wallet Market Trends
Growing preference for contact-less transactions is driving the market growth
Market CAGR for the e-wallet is being driven by the growing preference for the contactless transactions. E-Wallet utilizes credit/debit cards or bank accounts to process payments easily, with the user's data being secured. It can be used to make transactions, like mobile recharge, bill payments, movie/travel bookings, and money transfers from one bank to another. The e-Wallets are easy to use and provide convenience to the customers as it does not require any registration process and have the ability to provide real-time information on transaction and funds.
The utilization of E-wallets will help marketers with versatility, accessibility, and opportunities to interact with consumers in real-time, thus striking host of retailers and businesses to accept them and clarify their monetary transactions for business deals. The rising adoption of smartphones and the booming smartphone market has increased the use of E-Wallets. It provides a new dimension to retail sales to enhance their business presence, while smartphones avail customers with a simple way to process their payments, acting as an innovative channel for merchants and financial institutions. There is an ease of sending and receiving information with mobile devices with special applications and location-aware. The mobile connection helps merchants, and financial institutions transfer information, like promotional offers, in a way information is right spotted, useful, and more relevant to their requirements. Businesses come up with an application that has specific shopping preferences and requirements of a person tracked.
The emergence of the Covid-19 pandemic had a hopeful effect on the market, as the market players had to shut most of their offices temporarily owing to government regulations and travel restrictions. This caused them to alter their mode of operations, thus boosting digital transactions and mobile payments throughout the world. It has fastened the rise of the e-commerce industry for new customers, firms, and types of products. Various market players, like Alibaba, Apple Pay, Samsung Pay, Square, and American Express, are working to introduce apps that are user-friendly, easy to use, and of good security to pull the customers to utilize e-wallets.
The exposure of various commerce platforms and rapid urbanization with increasing disposable income of consumers in developing and developed countries are boosting market growth. The expansion of the mobile wallet market in developing economies is boosted by the unbanked population, internet shopping, and person-to-person money transfers. Thus, driving the E-Wallet market revenue.
E-Wallet Market Segment Insights
E-Wallet Technology Insights
The E-Wallet market segmentation, based on technology, includes Near Field Communication, QR Code, Text-based service, and Digital Only. The QR code segment dominated the market, accounting for 47% of market revenue (78.48 Billion). QR scanner is largely utilized for cashless transactions throughout the globe, as it permits people to accept and transfer payments. The increase in the utilization of smartphones and customers' demand for the simplicity achieved by scanning the unique payment code of sellers is increasing the adoption of the QR code.
E-Wallet Application Insights
The E-Wallet market segmentation, based on application, includes Retail & E-Commerce, Hospitality & Transportation, Banking, and Vending machines. The retail & e-commerce segment dominated the market with 33% market revenue in 2021, owing to the rising adoption of mobile wallets among retailers and online channels. The use of cashless or contactless payment for digital marketing by retailers has boosted the growth of the E-Wallet market. The technology assists shops and e-commerce enterprises, providing special discounts and tracking loyalty incentives to enhance the relationship with mobile-using customers.
Figure 2: E-Wallet Market, by Application, 2022 & 2032 (USD Billion)
Source: Primary & Secondary Research, MRFR Database, and Analyst Review
E-Wallet Regional Insights
By region, the study gives market insights into Asia-Pacific, North America, Europe, and the Rest of the World. The North American E-Wallet market dominates this market, owing to a rise in the adoption of smartphones and tablets, especially among the younger generation who opts for processes that are easier and safer. The US is the highest contributor to the E-Wallet market, followed by the fastest-growing Canada in the North American region.
Further, the main countries studied in the market report are The US, France, Canada, German, the UK, Italy, Spain, China, South Korea, Japan, India, Australia, and Brazil.
Figure 3: E-Wallet Market Share By Region 2022 (Usd Billion)
Source: Primary & Secondary Research, MRFR Database, and Analyst Review
Europe's E-Wallet market accounts for the second-largest market share due to the key developments in various applications, consisting of NFC-based ticketing, transaction, and access control, hospitality, and public transportation. Further, the German E-Wallet market held the largest market share, and the UK E-Wallet market was the fastest-growing market in the European region.
The Asia-Pacific E-Wallet Market is predicted to grow rapidly for the CAGR from 2023 to 2032. This is due to the increasing population, increasing use of smartphones, a growing number of internet subscribers, and fast growth in the retail and e-commerce sector across the countries in this region. Moreover, China’s E-Wallet market held the largest market share, and the Indian E-Wallet market was the fastest-growing market in the Asia-Pacific region.
E-Wallet Key Market Players & Competitive Insights
Leading market participants are investing largely in research and development in order to enlarge their product lines, which will help the E-Wallet market grow even more. Market participants are also undertaking a various strategic activities to spread their footprint, with important market developments including contractual agreements, new product launches, higher investments, mergers and acquisitions, and collaboration with other organizations. To enlarge and survive in a more competitive and rising market climate, the E-Wallet industry must offer cost-effective items.
Manufacturing locally to reduce operational costs is one of the key business tactics used by manufacturers in the E-Wallet industry to benefit clients and increase the market sector. In recent years, the E-Wallet industry has provided some of the most crucial advantages to the e-commerce industry. Major players in the E-Wallet market, including DAMEN ePayment, Alipay, Samsung Electronics Co. Ltd., PayPal Holdings, KFH, Google Inc., Mastercard Incorporated, Amazon Web Services Inc., American Express Banking Corp., Apple Inc., AT&T Inc., and others, are trying to rise the market requirement by investing in research and development operations.
Alipay is the leader of open digital daily life services platforms handled by the Ant Group. Alipay was launched as an escrow service in 2004 to solve the issue of trust between online buyers and sellers in the starting days of e-commerce in China, and it has grown with continuous innovation to provide more than 1.2 billion users ly, along with its worldwide e-wallet partners. Alipay has developed online payment channels for buyers and sellers in more than 200 countries and regions. It supports transactions in 27 different currencies and tax reimbursement in 35 countries and regions and can be utilized by foreign tourists and foreigners living in China. In September 2022, with the aim to collectively promote cashless travel in the nation, the leader in mobile payment providers from across Asia announced the inclusion of Alipay cross-border digital payment solutions in South Korea. This launch helped mobile payment companies from Southeast Asia and Hong Kong to extend the availability of their services in South Korea through Alipay for the first time.
DAMEN, founded in 2018, aims to provide electronic payment solutions in the Egyptian Market. It has a network of over 37,000 merchants spread throughout the country with offices and dedicated staff in all places providing services. In July 2022, DAMEN ePayment developed its mobile wallet app in collaboration with BKN301, which is a financial technology company that develops banking-as-a-service functionalities, Cashflo, and payment services.
Key Companies in the E-Wallet market include
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DAMEN ePayment
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KFH
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Google Inc.
- Alipay
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Mastercard Incorporated
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Amazon Web Services Inc.
- PayPal Holdings
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American Express Banking Corp.
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Apple Inc.
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AT&T Inc.
E-Wallet Industry Developments
The management of the digital wallet will fall under the purview of Early Warning Services (EWS), a bank-owned corporation that operates the money-transfer service Zelle. The wallet will continue to be separate from Zelle, and its name has not yet been chosen. The banks are still ironing out the smaller nuances of the client experience. Customers will probably need to provide their email on the checkout page of a retailer. EWS will launch the new service in the second half of 2023. The banks expect 150 million debit and credit cards to be supported when the wallet starts. Customers from the US who have made on-time payments on their invoices, recently used their card online, and supplied an email address and phone number are eligible.
MOSIP is getting ready to introduce the Inji digital wallet, an identity verification tool, in 2023. Suite provides a complete open-source ID infrastructure that goes beyond basic ID.
In an effort to compete with PayPal and Apple Pay in 2023, some banks are apparently developing a digital wallet that connects with debit and credit cards. The Wall Street Journal said that Early Warning Services, a partnership between numerous banks that already manages Zelle, would oversee the digital wallet. When the new wallet first launches, Visa and Mastercard will be on board.
The first mobile wallet to provide digital assets, a search engine, and verified social media accounts in a single application was HUMBL®, according to HUMBL, Inc. in 2023.
June 2022:Samsung announced the Samsung wallet could be utilized by customers to store boarding passes, identification cards, and digital keys in one location, developed to allow the user to monitor their digital assets through cryptocurrencies' value.
September 2021:PayPal Holdings acquired Paidy, which helped increase the capabilities, relevance, and distribution of PayPal in domestic payments in Japan.
July 2017: The innovative Mobile Wallet Payment Service was launched by the KFH and MasterCard together. This was an innovatory platform that helped to transform any associated device into a commerce device to easily receive and make payments.
E-Wallet Market Segmentation
E-Wallet Technology Outlook
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Near Field Communication
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QR Code
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Text-based service
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Digital Only
E-Wallet Application Outlook
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Retail & E-Commerce
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Hospitality & Transportation
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Banking
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Vending Machine
E-Wallet Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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