The value of digital wallets transactions will exceed $12 trillion in 2026, from $7.5 trillion in 2022, according to a new study from Juniper Research.
To capitalise on this growth, the research predicts leading digital payment vendors will diversify their payment products to include new solutions, such as buy-now-pay-later and cryptocurrencies.
Digital wallets are software-based systems that securely store users’ payment information for many payment methods in one location.
The new research found that increasing merchant acceptance of digital wallets at ecommerce checkouts has been a driving force behind enabling further use.
It predicts that APIs (Application Programming Interfaces) that connect financial institutions to local retailers will be key to the international growth of digital wallets for large, cross-border ecommerce merchants.
The report also recommends that digital wallets vendors look to offer value-added services, such as loyalty rewards and credit, to add variety to their revenue streams.
Juniper Research’s Competitor Leaderboard for the digital wallets market has identified the 5 leading market vendors as follows:
3. WeChat Pay
4. Apple Pay
5. Google Pay
“The digital wallets market is heavily saturated, meaning finding a source of differentiation is critically important,” Research co-author Damla Sat said.
“We have ranked PayPal as an established leader as it has successfully grown an expansive, differentiated offering; leveraging its strong merchant acceptance by expanding quickly into buy-now-pay-later and QR code payments, as well as signing partnerships with key merchants to scale its innovative solutions.”