A report by Juniper Research predicts that by 2024 the number of people using digital wallets will reach four billion – a number that, by then, will equate to half of the world's projected population.
The use of digital wallets is already gaining traction, with a record 143 million customers registering to use mobile money in 2018. That same year, mobile money transactions hit £1.3 billion per day, and by 2024 Juniper predicts digital wallet transactions will rise by more than 80% to over US$9 trillion (£7.4 trillion) per year.
Growing use of digital wallets will be driven by an increase in transactions conducted via stored credentials – more people will save card details in their digital wallets and more transactions per wallet will be made. In the US alone, it is predicted that annual spending per digital wallet will increase from approximately US$3,350 this year to US$6,400 by 2024, a growth of just over 90%.
Increased security is another driver behind the predicted growth. The introduction of Secure Remote Commerce (SRC) standards (a set of specifications developed by EMVCo that enable a single digital and secure terminal for consumer payments) means transactions are protected via tokens and dynamic cryptograms.
While the report says that consumers are more familiar with digital wallets that utilize near-field communication (NFC) technology, such as Apple Pay and Samsung Pay, the emergence of wallets based on QR codes is on the up, and growth is predicted to continue with EMVCo standards.
QR code opportunities in this area are likely to occur in developing Asia, according to Juniper, where limited POS infrastructure means smartphones can instead be used to fulfil QR code-based transactions.