By 2028, digital wallet transactions will total more than $16 trillion.
A recent report has revealed that the total value of digital wallet transactions is expected to increase by 77% from $9 trillion in 2023 to $16 trillion in 2028. This growth is driven by the adoption of advanced services like Buy Now Pay Later (BNPL) and micro-loans, leading to increased engagement among users in both developed and developing markets.
Digital wallet providers are using these advanced services to differentiate themselves and generate additional revenue in a competitive market. Super app strategies, where digital wallets offer a range of services, will rely on effectively deploying these advanced services at scale. The report emphasizes the importance of diversifying the appeal of digital wallets in a crowded market.
Advanced services, particularly BNPL, are attracting more users, especially younger consumers, and generating additional revenue. Digital wallets offer increased security through tokenization, enabling the secure use of payment information. Additionally, as digital wallets expand to include elements of digital identity, convenience will become increasingly important, allowing wallet services to become comprehensive apps for financial well-being.