Mobile Wallets are the future.
This is especially true in developing countries where smartphones are becoming the first access to the internet.
See why Mobile Wallets & Payments are taking over phones with this Fintech infographic:
Let's first define Mobile Wallets & Payments for people who are new to this tech:
What Are Mobile Wallets & Payments?
Mobile or Digital wallets are apps or services you have on your phone that allow you to make money payments (for goods & services) or transfers (family and friends).
How Big Are Mobile Wallets
Mobile wallets are so big $620 billion US Dollars will move through mobile wallets & payments in 2016. By 2020 this number will grow to be $1 Trillion US Dollars.
In 2016, 444.7 million people will make some sort of mobile payment
Why Mobile Wallets Are Disrupting Money
Many people don't have access to banks or credit / debit cards.
Dangerous conditions make people not want to carry cash in some countries.
Mobile Phone usage is exploding in developing countries.
Companies are bundling digital wallets with recharging of talk minutes and internet data.
- Special Offers
Some digital wallets give their users special partners offers like discount movie or bus tickets if they pay with a certain digital wallet or payment provider.
- Peer to Peer (P2P)
It's cheap and easy to instantly transfer money between friends & family.
- Low Cost
It's even low cost for businesses to accepts payments. They don't need any special equipment. Just their normal smartphone.
- Exchange Rates
Many mobile wallets & payment providers handle exchange rates seamlessly for users.
Tons Of Functionality Right On Your Phone
There are many different features between different mobile wallets. Here is a list of all the options you may encounter:
- Use existing bank or credit cards
- Education Payments (pay your university tuition and fees)
- Purchase Financial Products (ex: Life Insurance)
- Website Payment Option (pay for a product with Apple Pay)
- Buy Goods like Movie or Bus Tickets
- Recharge Talk or Data Minutes
- Get a Micro-Finance Loan for Entrepreneurs (these are very small loans usually for businesses in developing countries)
- P2P Payment & Transfer
- Direct Deposit From Employer
- Utilities Bill Pay
- Near Field Communication (NFC) payment. Tap you phone in the store to pay.
More Security With Mobile Wallets
Mobile wallets offer a lot of added security features normal payment methods may not have.
- Password Protected
- No cash to steal
- Fraud Monitoring & Payback
- Fingerprint Scanning
- No credit card skimming risk
Where Are Mobile Wallets Most Popular?
India has the fastest mobile phone adoption in the world and is taking mobile wallets along for the ride.
One big reason is a lot of Indians have never had a bank account before.
Bundling with special offers and recharging data and talk minutes is also making it very popular. The biggest mobile wallet is Paytm in India.
China is the biggest player in Mobile Payments. Alibaba Alipay accounts for 50% of online transactions.
China is in 1st place when it comes to mobile payemtns. There are 193.6 million users who make mobile payments a year. Compare this to the U.S., who is 2nd, and only has 37.5 millions users making a mobile payments.
Africa is a mobile first continent who is also a place where a lot of people don't have bank accounts. Less than 1/4 of people operate a bank account.
Mobile wallets are also very popular in Africa due to government corruption touching other forms of money.
List Of Top Mobile Wallets & Payments By Country
- Apple Wallet
- Google Wallet
- Alipay from Alibaba
- Line Pay
- NTT Docomo
- Yandex Money
- Visa Qiwi Wallet
Banks Feeling Pressure To Go Mobile
Mobile Check Depositing: Quick pick of your check and it's deposited. This is causing many branches to close resulting in big operational savings.
Peer to Peer: Many banks offering quick peer to peer money transfer via email address payment like Chase Quickpay.
Offline Bill Pay: Schedule a physical check to be mailed out free to pay bills.
Huge Future Growth For Mobile Wallets & Payments
There are 10 more years of growth as the developing world starts using more and more smartphones.
There will be 6.1 billion smartphones in use by 2020 which is 70% of the world's population.
What do you think?
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