Total spend via digital wallets will exceed $10tn globally in 2025, a new study from Juniper Research has shown.
The wallets, which was up from $5.5tn in 2020 with a dramatic 83 per cent growth, would be fuelled by the heightened adoption of digital payments during the pandemic, the research found.
The new research, ‘Digital Wallets: Key Opportunities, Vendor Analysis and Market Forecasts 2021-2025 Market Research,’ identified that wallets were becoming increasingly capable of both contactless and remote payments.
In 2025, contactless and eCommerce payments will account for 50 per cent of total wallet spend, from just under 36 per cent in 2020, “making these the high-priority areas where wallet providers need to maximise their merchant networks.”
The report also found that the rapid growth in digital wallets availability, coupled with rising adoption, has left merchants with difficult decisions
Research co-author, Alexandria Sadler, explained, “Merchants must base their payment strategies around wallet acceptance in order to support a digitally-engaged addressable market, but must also judge the right wallets to target, or they will be lumbered with increased costs and limited benefits.”
The research further found that the increased use of contactless mobile payments during the pandemic, prompted by concerns around cash, seeded greater wallet use across the payments’ ecosystem.
It added that contactless adoption would rise with over 34 per cent of mobile phones set to use contactless payments in 2025, up from 11 per cent in 2020.