15 Fast Facts about Electronic Wallets
Electronic wallets are becoming an increasingly popular way to make payments. An electronic or digital wallet is an electronic device or application that is stores your credit/debit card or bank account information, and allows you to make transactions more in-store and online. Here is a list of facts about electronic wallets you probably didn’t know:
- The first online payments began in 1994, when the Stanford Federal Credit Union started offering online banking services. One of the first mobile wallets, however, was released by Google in 2011.
- Digital wallets use NFC (near field communication) technology to make payments. This means that you tap your phone or place it near the sensor to make a payment.
- Electronic wallets are often more secure than credit cards because they are either password protected or require biometric identification to make transactions.
- About 30% of people prefer to bring their phones rather than their wallets when shopping, giving an indication of the demand for digital wallets.
- WeChat Pay is the most used e-wallet service with 600 million users. However, this digital wallet can be used only in China.
- In the rest of the world, PayPal is the most widely used electronic wallet, with 210 million users.
- Apple Pay ranks second with 87 million users.
- In 2018, approximately $4296 billion worth of transactions were carried out through digital wallets.
- In 2019, this value is expected to rise to $6109 billion.
- Around 64% of smart phone owners made a payment using their phones in the past year.
- 39% of smart phone owners use a mobile wallet application
- Among people aged 18 to 34, 48% of smart phone owner’s use a mobile wallet while 32% are interested in using one.
- In addition, 44% of smart phone owners aged 35 to 44 use a mobile wallet, while 32% are somewhat or very interested in using them.
- In the age group 65 and older, only 22% of smart phone owners use an e-wallet.
- China has the highest mobile wallet usage with 47% of the population using an electronic wallet.
With the increasing rate of electronic wallet adoption, perhaps your business should consider offering e-wallet payment options as well.