Even though keeping cash and credit cards in your pocket presents fast and easy access to funds for daily transactions, they both carry significant risks. Think of thieves stealing your wallet or fraudsters obtaining your credit card information. Also, consider the inconvenience of waiting for a small change at the point of sale.
As a result, more consumers are switching to mobile payments across diverse distribution channels. According to GSMA State of the Industry Report, at least 1 trillion US dollars worth of transactions were transacted via mobile wallets globally in 2021. It is an increase of 31% from the previous year, contributing $600 billion in total GDP to countries worldwide.
The contribution is almost 1.5% higher than it would have been if these countries operated without mobile money. This indicates more global consumers are using mobile wallets to make payments.
And even more are willing to switch from their current payment channels to mobile payments. These options offer several benefits compared to cash or credit cards. Our quick guide explores what mobile wallets are, how they work, their benefits, and some popular options.
An Overview of Mobile Wallets A few decades ago, sending money remotely was unheard of. Then came the digital wallets, mobile wallets, or eWallet apps, fueling a revolution in the fintech industry. These electronic software facilitate paperless and cardless transactions by storing bank card information in one place.
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