A new report traces the upward take-up of mobile wallets in relation to more traditional methods of making monetary transactions and predicts that this trend will continue to accelerate. According to the Experian Global Insights Report digital online spending will continue to gain strength following the pandemic.
During the pandemic, more people switched to digital payments; as societies emerge from the worst points of the coronavirus measures, there does not appear a flight back to cash or other traditional payment forms. Instead, consumers appear to be engaging with digital payments as much as they engage with email.
The shows that 62 percent of respondents say they are currently using mobile wallets, while 63 percent use traditional forms of payment.
The driver for digital wallets appears to a desire for fast, frictionless, and secure transactions. These reasons partly explain why 53 percent of consumers surveyed said they have increased their spending and transactions on digital channels in the past three months.
Perhaps above all consumers appear to be most concerned about the security of their online transactions and activities. This also shapes the types of organizations to which consumers are turning to when setting up digital payments, with traditional service providers like banks and credit card companies being preferred.
This does not mean that newer models are not graining ground and business interest in mobile wallets, Peer-to-Peer (P2P), and Buy Now Pay Later (BNPL) continues to be high. is that businesses are also able to find options for better financial inclusion. A motivator for BNPL is to avoid credit card debt. In contrast, P2P lending is considered a risky investment by many analysts.
As the market matures, those organizations offering the best consumer experiences are most likely to prevail. The current standing is that companies have room to improve meeting customers’ expectations of the digital experience. For example, 23 percent of consumers surveyed say their expectations for the digital experience have only somewhat or not at all been met.
Furthermore, only 23 percent of consumers feel very confident that the businesses will address their online security concerns. Consumers do not appear to think it is their role to protect their online activities given that 73 percent of those polled put the onus on companies to protect them online.
