MOBILE/digital wallets, which have become a mainstay of online payments within a short period of time, are expected to account for more than half of the entire e-commerce transactional volume by 2025.
Mobile/digital wallets were unheard of up until a decade ago. However, in a short period of time, they have become the preferred mode of payment on e-commerce platforms.
On the other hand, the other traditional means of payment, such as credit or debit cards, have lost significant ground in the battle of digital payments.
In a recent statement, Safe Betting Sites, citing data from German market and consumer data portal Statista, said 49% of the global e-commerce transaction volume in 2021 came from digital/mobile wallets.
“The growth in popularity of wallets is expected to continue, and by 2025, they should account for 51% of the transaction volume,” Safe Betting Sites, which helps users make the correct choice when evaluating a variety of websites, platforms, services and betting apps, forecasted.
Credit cards were the second preferred payment method, with only 21% of the market share, while debit cards were the third-most preferred method, at 13% – a combined market share of 34%, which is still significantly short of the 49% that digital/mobile wallets hold.
“The share of credit cards is expected to drop to 19% by 2025, whereas the share of debit cards is expected to remain the same,” Safe Betting Sites added.
On the other hand, direct bank transfers accounted for 7% of transaction volume last year. By 2025, SafeBettingSites expects bank transfers’ to drop down to 6%.
Buy-Now-Pay-Later (BNPL) payment method is the latest entrant in the digital payment market. 3% of e-commerce payments were made through BNPL in 2021.
Cash-on-Delivery (COD), meanwhile, was considered a vital payment method in the nascent stages of the e-commerce industry. However, COD also accounted for a mere 3% share in 2021.
“The popularity of BNPL will continue to grow, and its share should increase to 5% in 2025, while only 1% of e-commerce payments will be made by COD by 2025,” said Safe Betting Sites.
Meanwhile, Safe Betting Sites said the Asia Pacific market has been the driving force behind the popularity of mobile/digital wallets, with 69% of e-commerce transaction volume in the region coming from mobile/digital wallets last year.
The North American market was the second most popular for mobile/digital wallets, with a 29% market share. However, credit cards were still the preferred digital payment mode there, with a 31% market share.
On the other hand, the share of mobile/digital wallets in the European market was slightly lower at 27%. However, wallets were the most popular mode of online payment in Europe.
Mobile/digital wallets were least prevalent in Latin America and the Middle East online markets, with 19% and 17% market share, respectively. – Oct 25, 2022