Digital Wallets are safe and easy to use and help us all in unforeseen situations. With easy registration processes and a strong merchant and customer settlement process, these will likely surpass all monetary cash transactions in the years to come. It is the most popular mode of payment today if reports are believed. The trend started at the beginning of 2020 when the world witnessed the onslaught of the pandemic. Although the concept has been in the market for a few years, it recently gained more acceptance and became famous.
During the covid-19 outbreak, cash was held as a spreader of the virus, so governments of several nations wanted their respective countries to go cash-free. It happened in a blink, with little to think about. Everything turned online in a few days: most businesses, especially the small ones, transformed digitally overnight. Many end-users who had never thought about wallets turned to them to transact. Welcome to the world of digital transactions. Read about the top trends in the digital wallet business here.
Increase in QR Codes
This may sound alien to you, but QR codes were always there since 1994. However, people have used them very rarely. Touch-free avenues opened up the possibilities of QR code codes usage again, very recently. For the uninitiated, these are bar codes that people with smartphones can scan with their phones and facilitate a transaction. It takes you to a specific page and reduces phishing attacks and attempts.
The main reason for their popularity amongst others is that they are touchless. Today, they are hogging the limelight in various sectors like social networking, discount coupons, and sharing digital menus at restaurants. Marketers are using these abundantly. Hopefully, you can see them in full force in the coming times. They help create immersive but secure experiences for the consumers.
Voice-based payments will also rise in the times to come, as various wallet companies and phones together move forward to take AI to an all-new level. Wallet companies are mobile banks and work like physical banks. It does seem that these wallet companies will see huge profits in the days to come, as their usage is all set to increase in various spheres like travel booking, monetary transactions, cryptocurrency exchanges, and utility bill payments.
Such a state-of-the-art infrastructure is something that companies are investing in. As with capital allowance for financial firms, wallet companies can also take leverage of such tax rebates to maximize their growth and reach across the globe with more advanced options for consumers. It will be a boon for society as we all turn cashless.
It includes safety features like fingerprint encryption, facial recognition, and iris scanning that help to facilitate transactions. Most wallet companies are cashing in on this trend for increased security for transactions. It has emerged as one of the potential solutions to stop fraud. The usage of biological and physical characteristics of an individual seems to be a sure shot way to control various access points.
It has increased quite fast over the years, having made its way into smartphones, electronic devices, and government photo IDs. The use of smartphone biometric for store payments is also likely to increase in the coming years. Mobile companies are also leaving no stone unturned to revolutionize this digital boom by including facial recognition and fingerprint scanning. In the days to come, iris scanning may also become a reality.
AI and Machine Learning are also rising sectors that will make wallets safer and fraud-free. Moreover, it will be better to track the initiator of the fraud in the times to come. Machine learning studies the patterns of businesses and transactions daily. Thus, it can identify and stop any untoward transaction on mobile wallets, just like credit cards. AI-powered risk scoring helps financial institutions and wallets prevent fraud by segregating large amounts of data from available resources and helps reduce false patterns.
Cloud technology also helps wallet companies to maintain their infrastructure and data security through in-built systems. It is also scalable, so more and more wallet companies are looking towards that avenue. Cloud has its framework, which also makes the wallet transactions non-cumbersome. Remote virtual servers also remove the need for physical services that can be hacked easily. Moreover, cloud storage has built-in encryption, which is impossible for cyber-criminals to break.
Transactions speeds are also higher in the case of cloud-based wallet transactions. It also supports another trend of cryptocurrency, which helps to forego cash and convert it to coins and tokens. The entire globe is looking towards such transactions today. Moreover, the returns promise to be more than traditional financial channels. Being new in the current scenario, the growth may be slow. But these wallets can soon outsmart other modes of payment.
These are the top trends in the digital wallet market today. There remains more room for growth in the times to come. Look forward to more advancement in the days to come.