Mobile Wallets: Enabling a Digital Future

Mobile Wallets: Enabling a Digital Future

The business-consumer relationship is rapidly becoming digital. Using e-commerce platforms and AI-powered solutions, businesses are transforming their ways to meet the needs of their customers. An important part of the financial sector that is rife with innovation is payment. Mobile technologies like smartphones, tablets etc., offer convenient digital solutions for both customer and company to make virtual payments using a mobile wallet. 

What is a Mobile Wallet?

The mobile wallet is an application that can be installed on a smartphone and stores all user information regarding debit/credit cards, coupons, or reward cards on the mobile device. This info can then be accessed using a Personal Identification Number (PIN), QR code set by the user or by linking an image of the owner with the wallet. 

Consumers can then use this info to make payments at a merchant site by using a technology called Near Field Communication (NFC), which uses radio frequencies to communicate with electronic devices. The mobile wallet transfers the payment info to the merchant Point-of-Service (POS) terminal by waving or holding an NFC-enabled mobile device over the store’s NFC reader. 

Is Apple Pay a mobile wallet?

Apple Pay, Samsung Pay, and Android Pay are examples of mobile wallets that can be installed on a smartphone or other hand-held devices. 

Should I have more than one mobile wallet?

With the usage of mobile wallets having increased over the past few years, it is highly beneficial to keep more than one mobile wallet as merchant sites may or may not accept a particular payment method. For e.g., Paytm accepting merchants may not agree to transact via Google Pay, and vice-versa. This causes unnecessary inconveniences while making in-store purchases and hence, many users prefer to keep multiple mobile wallets on their hand-held or wearable devices. 

TraQiQ offers digital solutions to help large corporations across the world serve their customers better. Its robust mobile wallet enables users to manage and control finances through a convergent platform where they can virtually store and use financial assets. It also offers solutions that payment service providers need to launch and scale their businesses. 

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Mobile Wallets: Market Forecast and Competitive Landscape for Asia-Pacific (2020-25)

Mobile Wallets: Market Forecast and Competitive Landscape for Asia-Pacific (2020-25)

Overview:

Mobile wallets offer convenient solutions to users for making their payments online, thereby driving sales for businesses. It allows users to carry their debit/credit/reward cards, and coupons on their smartphones, tablets, or other hand-held and wearable electronic devices. The mobile wallet market has evolved because of advancements in mobile phone technology and is expected to grow exponentially over the next few years. 

Asia-Pacific to Witness the Fastest Market Growth

As per a report by Google, Temasek and Bain & Company, the Southeast Asia digital payment industry is projecting an increase of their gross transaction value from 600 billion USD in 2020 to 1.1 trillion USD by 2025, with mobile wallets expecting to touch a share of 114 billion USD by 2025. 

In December 2019, Ant Financial partnered with several local vendors in Southeast Asia and collaborated with eMonkey to capture market share in the region. According to Forbes, Indonesia is one of the first countries of the world with 95% of internet users reported as mobile users. Visa is partnering with Tencent to establish a payment system for Visa cardholders in China via WeChat. Additionally, initiatives like Digital India are enabling growth in this region. 

Competitive Landscape:

The mobile wallet market is highly competitive with companies leveraging strategic collaborative initiatives and acquisitions aimed at increasing their market share, and for greater profitability. A few of the major players are mentioned below: 

TraQiQ offers digital solutions to help large corporations across the world serve their customers better. TraQiQ’s cutting edge FinTech and AI-driven solutions have been deployed with leading multi-national customers around the world and are helping to increase customer loyalty, improve profitability and drive efficient financial transactions. 

Mobile Wallet Trends that will Shape the Future of Digital Payments

Mobile Wallet Trends that will Shape the Future of Digital Payments

Mobile wallets have gradually evolved from being a niche payment method for consumers who are digitally-savvy, to a payment method that is mainstream. Innovations in technology have diversified how and where mobile wallets can be used which has led to their rapid growth in the past 5 years. As per a report, the mobile wallet transaction value is set to reach a staggering figure of nearly 14 trillion USD by 2022, worldwide. 

Future trends for mobile wallets reveal that advances in this field might eliminate the need for paper money altogether. Here, we aim to highlight some of the top trends that will influence the growth of mobile wallets across the globe, help in making payments more secure and convenient, and pave the way for a digital future. 

Top 5 trends:

Banking through Mobile Apps:

Mobile wallets were first introduced in 2014 via Apple Pay and owing to its success, competitors designed and launched their own apps like Android Pay, Microsoft Wallet etc. This has led to the spawn of many apps which have ditched traditional methods of payment and adopted mobile payments as a vision for the future. Traditional banking Institutions have also worked to develop mobile wallets for customers to assist and improve their banking experience. 

Loyalty Rewards:

Everyone likes being rewarded, and many banking institutions and retailers have started offering discounts and rewards to customers each time they use their mobile wallets. It is a way to incentivize customers to remain loyal to their brand. Retailers across the world are expected to follow suit or get left behind. 

Near Field Communication (NFC):

The security and simplicity of NFC technology have been the greatest inspiration for digital payment solutions. It greatly reduces the time and effort needed to carry out multiple transactions. 

Artificial Intelligence (AI):

Due to advances in this field, AI is being used by companies across the world to manage routine interactions with their customers. For e.g., Chat bots &voice instructions greatly reduce the need to speak with an agent, thereby reducing operational costs.

Crypto currency:

Crypto currency eliminates the need for a third party in the payment process which makes transactions secure and convenient. Businesses that adopt this tech can expect to thrive better than those that do not.

As consumers become more proficient with tech and keep these trends in mind, payments through mobile wallets will be the new future. Additionally, we can also expect rapid growth of digital banking solutions, remote bank accounts and even digital credit cards. 

TraQiQ offers digital solutions to help large corporations across the world serve their customers better. A robust mobile wallet enables users to manage and control finances through a convergent platform where they can virtually store and use financial assets. TraQiQ also offers solutions that payment service providers need to launch and scale their businesses. 

Paving the Way for a Better Future in Latin America and the Caribbean

Paving the Way for a Better Future in Latin America and the Caribbean

Digital Payments have become an indispensable part of the economies in Latin America and the Caribbean and has created many business opportunities for budding and established companies. Statistics indicate that nearly 70% of the adult population in Latin America is either unbanked or underbanked and this sector represents a market of approximately$34 billion per year. This presents a huge opportunity for the global banking industry which has seen only moderate growth during recent times. 

There are two major types of companies that will benefit from this digital boom: FinTech enterprises that have a sizeable presence in the region, and small-to-medium-sized businesses (SMBs) who are able to leverage the advantages of mobile banking and payments. FinTech solutions enable SMBs to reach customers in rural areas and offer cost-effective solutions to customers as compared to traditional banking services. 

Some of the key challenges that SMBs may have to overcome to capitalize on this market are:

If these challenges can be overcome, business opportunities in the region for companies will be huge. At a more technical level, the focus on tokenization in digital payment systems could be the key to growth in the region as it will allow companies and banks to adopt similar systems worldwide. 

TraQiQ offers digital solutions to help large corporations across the world serve their customers better. TraQiQ’s cutting edge FinTech and AI-driven solutions have been deployed with leading multi-national customers around the world and are helping to increase customer loyalty, improve profitability and drive efficient financial transactions. 

Digital Payments Drive Social Change in Emerging Markets

Digital Payments Drive Social Change in Emerging Markets

What does this translate into?

Emerging markets are leapfrogging from a largely disconnected and cash-oriented society to one where mobile devices are bringing consumers to the forefront of technology. They are leveraging technology. More importantly, they are driving innovation to add more relevant features and drive down costs. Practical, Affordable, and Relevant (PAR). 

So, what do we mean by PAR.

PRACTICAL:

A lot of users in emerging markets have never used a device – PC, phone, etc. The device and/or app experience must be easy to access and easy to learn and use. 

AFFORDABLE:

The device must be affordable. The monthly plans have to be very inexpensive. We saw innovation in India’s mobile phone industry, where incoming calls were free. It allowed a lot of people to acquire phones just to receive calls. Couple that with the business model innovation when Reliance introduced the Jio platform – reducing the cost of data to pennies per month. This type of technology and business model innovation drives usage. No wonder Reliance Jio is worth tens of billions of $. 

RELEVANT:

Cheap or free are great options. However, consumers demand value. They need to be able to get real work done. We see that in the area of digital payments – the unbanked are making payments via money stored on mobile wallets. Payments are being triggered via SMS messages or QR codes. This engagement model will drive change. 

Per World bank data, two third of the unbanked people (globally) own a mobile phone. This is an opportunity for financial inclusion. This is an opportunity to redefine the supply chain and bring in the unbanked community. Technologies like Blockchain provide a level of security and transparency that will drive growth in global commerce.

Lastly, there is the issue of infrastructure and scalability. Emerging markets are weak on digital infrastructure. While tremendous progress has been made in the last 10 years, we saw clear issues during the Covid19 crisis, where internet speeds were reduced significantly (plus outages). Scaling a solution to millions of uses takes significant resources – build the device, good UX to make sure the users can use it rapidly, relevant apps that provide value. This is clearly an area where Public-Private partnerships need to take precedence. Build infrastructure and digital solutions in tight partnerships to ensure sustainability even in the harshest conditions. 

The challenges of the emerging markets are now driving innovation. Payment and digital commerce are at the forefront of this transformation. TraQiQ offers Digital Commerce solutions that have been in production for over 10 years and are continuing to grow, innovate and support a PAR world. 

The Growth of Digital Payments

The Growth of Digital Payments

There is considerable history in the world of payments. As we go back thousands of years, we started with ecommerce/trade systems without monetary payments. It took considerable time to move from barter to livestock, precious coins, skins/leather and eventually paper money. However, there has been considerable progress in the last couple hundred years. The progression from paper money to checks to credit cards and now Digital currency (and payments). 

As we explore the world of digital payments, the revolution started in the mid-nineties with ecommerce and online shopping. It has continued to grow rapidly over the last 25 years. What started as simple payments with credit cards has now transformed into a broad segment of mobile payments. A simple tap or wave with a phone buys groceries or pays for a round of golf. How does one even define the broad world of digital payments? 

Digital payments convert a traditional cash transaction to a cashless one. The business world aggressively moved in that direction with ACH payments, wire transfers and EDI based solutions. As we look at the consumer world 25% of the global population does not have access to the traditional banking systems (with a high percentage of women). This is the segment that is ready for migration to the world of Digital payments – safe, reliable, transparent, and convenient. While these transactions tend to save money due to system efficiencies, the bigger benefit is that it leaves a digital trail, thereby protecting people’s financial interests. 

As with most industries, technology is changing the game. Countries are considering the introduction of digital cash, where digital legal tenders are transferred directly from payer to payee in a payment transaction. This is a scenario where paper and metallic currency will become obsolete. While this transition is likely to take some time, we are heading there. Many consumers in the developed markets did not use any cash during the many weeks of Covid19. McKinsey tells us that e-commerce transactions grew 81% in Italy during that period. Technology is also enabling regulators to bypass banks. We see companies like Paypal/Venmo, Square, and Stripe drive payments and transactions across the consumer and business eco-systems. If the user chooses to leave money in those accounts (aka wallets), it does not need to go to a bank account. 

We do live in interesting times. The growth of digital commerce coupled with mobile usage are driving deep change in the global payment’s infrastructure. Consumers and businesses are facing and driving this change. They are demanding innovation and the technology industry is delivering. There are significant social issues that need to be addressed – we need to be inclusive. However, there is every indication that technology will continue to enable the developing markets and underserved demographics will continue to benefit and join the connected world. 

TraQiQ offers a mobile wallet, payment gateway, and commerce solutions. These solutions have been deployed around the world and help large corporations serve their customers. These solutions also enable the unbanked consumers to participate in digital commerce with just a phone.