What Are The Most Important Mobile Wallet Trends?
By Shahid Mansuri
From being a niche service for tech-savvy consumers to a mainstream payment method, mobile payments have significantly grown in the last 5 years. According to a report, the mobile wallet transaction value reached $4,296 billion in 2018. And by 2022, this value is forecasted to reach a whopping $13,979 billion U.S.D. But, what’s even more surprising is that innovations in mobile payment niche have just begun. In the coming years, more and more advanced mobile wallet technologies will emerge and it might even eradicate the use of paper money altogether.
That means, we can expect to see more exciting developments in mobile wallets, which will ultimately make mobile payments more secure and convenient in the near future.
In this article, I’d highlight the top 6 mobile wallet trends that are going to be a big hit in the next couple of years.
Top 6 Mobile Wallet Trends to Look Forward to in 2019 & Beyond
Let’s take a closer look at the most crucial mobile wallet trends and how a mobile app development company can assist such platforms to advance forward.
1 – Mobile Banking
The Mobile Wallet trend was first begun in 2014 when Apple launched Apple Pay wallet. Soon after its successful adoption, competitors immediately built their own mobile wallets such as Android Pay, Samsung Pay, and Microsoft Wallet.
While this mobile wallet trend will continue to grow in the coming years, but the traditional banking institutions are also building secure apps with the assistance of mobile app development companies to assist their customers.
Cashless transactions have been a major shift in the finance industry. And since then, financial institutions have already made the necessary changes by bringing digital wallet solution of their own.
2 – Loyalty Programs
Everybody loves discounts and it’s what a loyalty program is all about. It is a customer retention strategy where brands incentivize their customers for remaining loyal to their brand.
In fact, retailers from worldwide have vastly adopted this strategy by offering in-store mobile payment option through which customers earn points each time they make a purchase.
And as we move forward, more and more retailers are expected to follow this suit. Otherwise, they’re destined to left out in the cold.
3 – Contactless Payment Terminals
One of the biggest drivers of mobile wallet trend is Near Field Communication (NFC).
The Near Field Communication basically allows 2 electronic devices, a smartphone & point of sale (POS) for example, to exchange a small amount of data.
In laymen’s terms, when a customer holds his or her smartphone close to a checkout terminal, the built-in NFC chip in the checkout terminal automatically subtracts the amount of purchase from a credit or debit card tied to customer’s smartphone.
As a result, customers no longer need to reveal their card number every time they shop.
This security and simplicity of NFC technology have been the greatest inspiration for digital wallet solution.
4 – Biometrics for Security
Though Biometrics technology has been around since over a decade, but the technology only recently became common in consumer products.
Thanks to Apple for introducing fingerprint scanner on its iPhone 5s product, biometric security technology has become a mainstream feature in today’s consumer products.
Biometric security technology, as you already know, adds an extra layer of security in mobile wallets. Once the biometrics feature implemented correctly, it eliminates the need to remember passwords altogether.
The biometrics technology allows mobile payment processing with just a fingerprint scan, making the mobile payment faster and more convenient.
5 – AI to Automate Routine Transactions
Artificial Intelligence (AI), in the last 3 to 5 years, has rapidly improved and made its way to one of the top emerging technologies. As a result, AI can now easily manage routine customer interactions.
One place where you might have probably encountered with AI technology is chatbots used by brands and ecommerce stores.
These AI-based chatbots basically help companies to address their customer’s problems. And when it comes to mobile payments, chatbots have been really useful by preparing and executing basic transactions automatically with customers’ approval.
Apart from this, AI is also capable of handling voice instructions, which ultimately makes routine tasks, execute automatically such as ACH payment processing or number verification without having to speak to an agent ever.
6 – Cryptocurrency
Cryptocurrency is no longer reserved for exclusive investors and tech-savvy brands. It has already been adopted by small-to-large businesses worldwide.
In fact, there are dozens of mobile apps that provide support for various cryptocurrencies. And as you might expect, the businesses that incorporate this technology are expected to thrive better than others over the long haul.
The reason for this is that cryptocurrency eliminates the need for a third-party in the payment process. This, as a result, will lead to more secure transactions, since security has always been (and always will be) the main concern for people.
There you have it! These are the most important mobile wallet trends that are going to dictate the world of mobile wallets in the coming years.
As consumers become more tech-savvy, these mobile wallet trends must be given an undivided attention if a business wants to remain ahead of the competition.
In addition, there will also be a rapid increase in fintech banking and marketplace banking which will offer services like remote bank accounts, digital credit cards, and digital banking solutions.