Global e-wallet landscape: 2023 and beyond
Identifying an e-wallet can be difficult. First, they have many names. In addition to e-wallets, they are known as digital wallets, mobile wallets, stored value funds, no reserve value funds, and means of payment to buy. In addition, their use and definition differ from one region to another. For example, Apple Pay is not considered an e-wallet in some regions because it does not technically store real currency. This is different from e-wallets such as Skrill, where users pre-pay in a currency, similar to a gift card. Meanwhile, the emergence of cryptocurrencies and their reliance on digital wallets to hold coins has added another level of confusion. Navigate the exciting future of finance with our guide, "The Future of Cryptocurrency: A Look at Digital Finance." Explore more here for a deep dive into the transformative potential of cryptocurrencies in shaping the financial industry.
However, one thing is certain. Electronic wallets in all forms are now an integral part of the global payments landscape. In 2021, digital wallets accounted for 48.6% of the value of e-commerce transactions worldwide. This is just over 2.6 trillion US dollars. This figure is predicted to rise to 52.5% of transaction value in 2025. A similar story with transactions at the point of sale (POS). In 2021, the share of e-wallets in global POS transactions grew by more than 21% year-on-year, accounting for 28.6% of the total value of global POS transactions or over $13.3 trillion. This share is expected to rise to 38.6% (over $22.7 trillion) by 2025.
In this article, we look at the forces behind this proliferation, the role of e-wallets in financial life around the world, and what the future of e-wallet providers and users looks like.
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While the use of mobile wallets in the US is on the rise, paper wallets are still the leader when it comes to POS transactions. In 2021, only 11% of in-store transactions were made through an e-wallet, compared to a total of 70% for debit, credit and payment cards. However, the e-wallet POS system market share is projected to grow to around 15% by 2025, driven primarily by cash.
On the Internet, the use of e-wallets is growing and generally equals spending on cards. Both take about 30% of the transaction fee. This trend is expected to continue to take over a third of the market by 2024 thanks to the proliferation of Apple Pay, Google Pay and other end-to-end mobile wallets (i.e. wallets that store cards). Embark on an exhilarating journey into the world of online casino gambling and discover "What Makes Online Casino Gambling So Exciting?" Click here to unravel the elements that make every spin, roll, and bet an adrenaline-pumping experience.
Important Players
The e-wallet landscape in the United States consists of many types of wallets. PayPal, the dominant e-wallet with 36% of its owners using it as their primary wallet, can function as both a custodial and non-custodial wallet as it can be linked directly to a bank card or simply funded. In contrast, the second most popular e-wallet is Apple Pay, which is used by 20% of e-wallet holders as a primary wallet rather than a stored-value transit wallet.
The third most popular is Venmo (16%), which works like PayPal.
What to look out for
Recently, e-wallets have attracted the attention of the US Congress. In April 2022, Congress held a hearing on what's in your digital wallet? ', on which he focused
Consumer Protection for Electronic Payments and consider supporting unbanked Americans with electronic money or stablecoins. The dispute has continued since then, but as of August 2022, no decision has yet been made.