Digital Wallet Trends 2020: Witness to Elevated Growth of Contactless Transaction

In recent years, we have seen positive amendments and improvements in a digital payment system that facilitates user-friendly, simple, and secure transaction gateway. But still, we all are curious about the future payments system holds in 2020.

In addition to this, digital payment system introduces new digital payment structure named digital wallet or e-wallet. The idea behind digital wallets is similar to the physical wallet by which you can buy anything anytime. Similarly, the digital wallet also allows you to store your money and credentials both, with no physical presence of wallet.

As per the report presented by Forrester Consulting for JPMorgan Chase, US merchants and consumers are equally considering the positive growth in digital wallet adoption in the near future. 41% of consumers are supposed to try digital wallets in 2018 and expected to increase the adoption rate in 2020. And, 55% of merchants will possibly accept e-wallet payments by 2018. Also, 67% of merchants admit that most transactions will happen through e-wallets within the next five years.

The current growing popularity of digital wallet/ e-wallet is confirming the report correctly. Also, it becomes one of the most favourite modes of payment among consumers due to its easiness and highest accessibility.

So, if you’re a business person and are looking to develop a digital payment app, then you must be aware of the trends which will lead the year 2020.

Smart speaker payments

The growth rate of Smart speakers has incredibly increased over the last few years and become more secure and convenient. The functionality which makes it in the top category of Digital Wallet Trends 2019 is it allows its customer to speak with them. With the smart speaker, you can give various commands to the speaker such as booking Uber, getting information about weather, restaurants, market etc. and receive voice responses. According to Statista as of November 2017, 28% of the users used voice assistants to make direct payments and to send money.

Amazon Alexa is the recent example of AI-based echo smart speaker installed in many retail systems. Now, Alexa also involves voice-command payments that offer the ability to pay credit card bills, send payments to other users, and manage bank accounts. That is the reason Google and Apple are also come up with an advanced smart speaker solution. Many merchants are uniting with Amazon and other smart speaker companies to feel a stable, secure, and convenient payment experience to their customers.

As per BI prediction, the usage of the Smart speaker for payment will increase from 18.4 million users in 2017 and expected to reach 77.9 million users by the end of 2022.

Sound waves-based payments

Sound-based payment technology facilitates contactless payments through sound waves. The transmitter uses the built-in Speaker to transmit the sound waves to the Receiver via Standard Microphone. The Sound waves carry the details (like IDs, Amount, Merchants etc.) that require during transactions, On the other hand, the Mobile Wallet uses the available funds in the Wallet to check the availability of funds and makes contactless payment possible.

Many digital wallet payment solutions are interested in it due to its simplicity and convenience. Another benefit of using Sound waves-based payments is there is no need for extra hardware that makes it cost-effective.

Near-field communication (NFC) payments

Google Pay, Samsung Pay, and Apple Pay are some contactless digital wallets that use NFC technology. The technology behind the NFC payment based on NFC chips, installed in both payment and reader devices. During payment, it should be required to both NFC devices to get very close to each other, and the NFC chips exchanges encrypted data to complete payment. Near-Field Communication (NFC) uses radio waves for highly secure and encrypted payments.

NFC payment readers connect to only one NFC payment device at a time that enhances the confidentiality and provides secure contactless payments.

How Digital Wallet/ e-wallet Establishing the Digital Future of Banking

We all are well-aware of the importance of contactless payment via Digital wallet/ e-wallet payment system. This payment method has reshaped the banking and payments industry and enhance the digital transaction. Smartphones are the leading intermediate in the evolution of the digital wallet based payments.

Now, consumers and digital wallet app developers are getting much more interested and looking for e-wallet based transaction solutions in comparison with traditional transaction solutions. This is due to its easiness, convenience, and cost-effectiveness.

Final Thoughts

Digital wallet Payments facilitates non-cash transactions through various digital techniques. It is the ensuing evolutionary step that promotes e-wallet based financial services and replacing classic, old fashioned payment methods such as from cash to credit/debit card to mobile. If you are a business person who is looking for mobile wallet application development, you should go for the best mobile app development company, which is having proficient experience in creating mobile wallet app, and create its place in digital wallet trends of 2020.