Wallets like MobilePay, Apple Pay, and Google Pay have become prevalent payment methods due to their ease, convenience, and security for consumers and retailers, including online shops. At the same time, they open the door to new services, which will create even closer bonds with consumers.
Wallets are popular payment methods, especially in the Nordics. Although physical payment cards remain the most widely used method, digital wallets are steadily capturing an increasing market share each year, according to Visa’s Spring 2024 survey, Digital Payments: A Wave of Innovation in the Nordics. By 2026, wallet payments in physical stores are expected to account for 20% of turnover, while wallet payments in online shops are projected to constitute 32% of total sales.
Accessible and Secure for Everyone
A wallet is a mobile app or online service that allows consumers to make financial transactions with just a few clicks or swipes. A wallet is often linked to a payment card, making transactions efficient and secure for consumers, online shops, and physical stores.
Consumer confidence in wallets is high for several reasons. They are easy to use, and the checkout experience is seamless. Additionally, customers can keep track of their purchases. Retailers also benefit from offering wallet payments. The conversion rate is high because customers do not need to enter their payment information manually. A simple swipe or click increases the likelihood of completing the purchase. Payment data is transferred encrypted, reducing the risk of data misuse and fraud.
If a retailer or online shop wishes to offer customers wallets as a payment method, they can choose a payment solution that supports full wallet integration. This way, they avoid the hassle of navigating through the payment jungle and integrating each payment method individually.
Wallets Pave the Way for an Innovative Payment Infrastructure
MobilePay entered the market in 2013, Apple Pay in 2017, and Google Pay in 2018, and more are continuously introduced. Compared to all other payment methods, wallets stand out significantly. They open doors to new services, creating even closer bonds with consumers. Asia is ahead in this regard, with Alipay and WeChat Pay as examples of wallets that, in addition to payments, also offer services like food delivery, taxi bookings, hotel reservations, stock trading, and online shopping.
Future wallets will likely also handle health data and ID documents, bank-related services like loans and investments, and rewards and loyalty programs, such as cashbacks, discounts, and other incentives to buy more. This creates value for us as consumers while encouraging additional sales.
Naturally, there are also challenges associated with this all-in-one app, as increased demands for security and protection of critical personal data will arise. But overall, the future potential of wallets is not just promising – it is as bright as neon. Wallets will create a more secure, efficient, and innovative payment infrastructure to revolutionize how online shops handle payments.
