Skip to main content

Digital Wallet Spending Surges in Europe and America

The advantage of a digital wallet is that -- for both online and offline transactions -- it affords the user an opportunity to make secure, quick payments, obviating the need for a physical card or to enter bank details for every purchase.

For the unbanked, it goes further, providing a means of economic inclusion, both as an alternative to cash payments and as a way of accessing financial services such as loans and savings accounts.

For the wallet provider, service evolution from the early days of online payments and person-to-person remittance has enabled several fintech vendors to achieve a strong presence across the payments and retail ecosystems.

This now extends both to offering offline and online goods payments on their own and third-party storefronts, together with loyalty programs, bill payments and digital banking services.

Digital Wallet Market Development

Spending via digital wallets across Europe and North America will increase by 40 percent this year to nearly $790 billion, according to the latest worldwide market study by Juniper Research. The largest growth in 2019 will come from in-store payments, with mobile contactless payments more than doubling across these regions.

The study found that while eRetail through wallets would remain the largest contributor to consumer spending, continued migration from cash would see a surge in wallet use at the point-of-sale (POS). This was the case amongst younger digital wallet users and in the U.S. market, where a third of Apple iPhones are now used for contactless payments.


The study findings highlighted the importance of digital wallet providers establishing partnerships with leading banks to maximize reach amongst wallet users. Juniper Research’s analysis found that Apple far outstripped its rivals -- achieving the largest addressable share of banking consumers in 7 of the 10 national markets assessed.

In the online space, the study found that wallets -- including Apple Pay, Amazon Pay and Visa Checkout -- had also significantly expanded their availability at merchant sites, although all lagged well behind PayPal in this regard.

Meanwhile, social payments through wallets will grow strongly both this year and beyond. It's a trend expected to be accelerated in 2020 by the emergence of Facebook’s Calibra wallet and its attendant Libra cryptocurrency.

Outlook for Digital Wallet Applications Growth

However, the study results were less optimistic about prospects for Wearable-Pay wallets -- indicating that their limited addressable bases and functional constraints meant they would struggle against converged wallets, providing an extensive portfolio of online and offline payment offerings.

"Wearable-Pay solutions are still completely dependent on the smartphone and are ultimately limited to a single use case. They are thus likely to remain, at best, a niche offering," said Nick Maynard, lead analyst at Juniper Research.

Popular posts from this blog

Big Data Analytics Revenue to Reach $215.7 Billion

Across the globe, more leaders seek actionable insight from the customer data they've stored in huge data lakes. Worldwide spending on big data and business analytics (BDA) solutions is forecast to reach $215.7 billion in 2021 -- that's an increase of 10.1 percent over 2020, according to the latest worldwide market study by International Data Corporation (IDC). Moreover, BDA technology investment will likely gain momentum over the next five years as the global economy recovers from the COVID-19 pandemic. The compound annual growth rate (CAGR) for global BDA spending over the 2021-2025 forecast period will be 12.8 percent. Big Data Analytics Market Development "As executives seek solutions to enable better, faster decisions, we're seeing relatively healthy BDA spending across all industries. Leveraging data for insights into everything from internal business operations to the customer journey is top of mind and of strategic importance," said Jessica Goepfert, vice

Warehouse Robot Deployment Gains New Momentum

The retail and wholesale back-office infrastructure market is being transformed by technology. The warehousing industry has accelerated automation efforts due to the increased order volume and labor shortages driven by the global pandemic. In addition to technology solutions such as handheld devices with enhanced capabilities, autonomous, collaborative, and mobile robots are proving to be the fastest-growing productivity-enhancing solution in the warehouse workspace. Commercial Robotics Market Development According to the latest worldwide market study by ABI Research, global commercial robot revenue in warehouses will have a Compounded Annual Growth Rate (CAGR) of over 23 percent from 2021 to 2030 and exceed $51 billion by 2030. "Mobile robots are at the heart of the warehouse robotics market and account for most shipments and revenue. These robots, made up of Autonomous Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs), are being used to move goods within the warehouse a

Hybrid Work: How to Enhance Employee Productivity

When you hire qualified talent for a key role and trust them to perform, you'll likely achieve the best outcome. Skilled and experienced people will deliver results, regardless of the challenges. That's a key lesson learned from the pandemic experience as most knowledge workers were asked to work from their homes. However, some resist returning to an open-plan office. It's unacceptable. Meanwhile, forward-thinking leaders decided a "return to normal" is undesirable, and in hindsight, everyone should aspire to be more accomodating than before. Therefore, location flexibility is okay. Hybrid Workforce Market Development How will people adapt to these changes? They'll apply the modern IT tools at their disposal. They'll learn new skills and thrive. Nearly 80 percent of employees are now successfully using online collaboration tools for work in 2021 -- that's up from just over half of workers in 2019, according to the latest market study by Gartner. This g