This blog was co-authored by Eddie Chin and Phillip Jackson.
An acquaintance of mine who has spent a lot of time in China told me how he uses the barcode on his WeChat Pay app to pay for everything there, including when he buys a cup of coffee from the street vendor outside of his office. He can’t remember the last time he touched a physical Yuan.
Digital and mobile wallets aren’t just big in China and India; they’re attracting consumers all over the globe. According to Payments Dive, some 2.6 billion people had some type of digital or mobile wallet in 2020, up significantly from the year before, and that number will grow to 4.5 billion by 2025.
Much of the uptick in usage was driven by the pandemic. Jodie Kelley, CEO of Electronic Transactions Association, told CNBC that safety concerns prompted consumers to adopt contactless payment options. She predicts digital and mobile wallets will continue to be a preferred source of payment.
How is this trend affecting our everyday lives, both as e-Commerce brands and consumers? Like all emerging trends that are upending major aspects of the economy, there are exciting opportunities to offer more services, and challenges that are a direct result of exponential levels of choice.