According to a recent Juniper Research study, the total value of transactions using digital wallets will increase from $9 trillion in 2023 to $16 trillion in 2028, a 77% increase.
Growth in both developed and developing markets is fueling this trend, and end-user engagement is being boosted by the rising use of cutting-edge services like BNPL (Buy Now Pay Later) and microloans. According to the study, it is crucial for wallet manufacturers to broaden their user base in an extremely competitive wallet market.
A software-based system called a “digital wallet” can be used to store a user’s payment, identity, loyalty, or ticketing information.
The report named advanced services as a major driver of digital wallet revenue growth. Digital wallet service providers are able to diversify their sources of income thanks to cutting-edge services like BNPL or microloans. The popularity of BNPL will attract more users and bring in more money, especially among younger consumers. This strategy is evident in Apple’s introduction of supplemental services, such as Apple Pay Later.
“Advanced services give digital wallet providers an opportunity to differentiate themselves in a crowded market and generate additional revenue,” said study author Michael Greenwood. Many digital wallets are pursuing super app strategies, which will depend on the successful implementation of advanced services at scale.
