With the continued rise of online shopping and ecommerce over the last few years, people are now saying goodbye to physical wallets and purses. The future is digital, and so are our wallets.
As reported in the Paypers Payment Methods Report 2021, digital wallets (or mobile wallets) have become one of the most preferred payment methods among global ecommerce customers within just a few years. Digital wallets registered 44.5% of global ecommerce transaction volume in 2020, an increase of 6.5% from 2019. Digital wallets are projected to represent 51.7% of ecommerce payment volumes by 2024.1 Long story short, adding a digital wallet option to your shop should be high up on any merchant’s to-do list for Black Friday.
The rise of digital wallets
Digital wallets are just what they sound like: digital versions of financial accounts that remove the need to carry a physical wallet. They allow customers to use their mobile phones instead of cards or cash to pay. Once a card is linked with a digital wallet, customers can use it in various ways. For example, online shopping, contactless payments, in-app payments, and withdrawals from ATMs.
The Payper’s The Digital Commerce report revealed that mobile commerce will account for 73% of all digital commerce transactions globally by value in 2021, while predicting an increase to 79% by 2025.2 Our growing attachment to our smartphones has driven demand for contactless payments - especially since the beginning of the COVID-19 pandemic. Particularly, younger generations such as Generation Z and Millennials are turning away from traditional payment methods and opting for new solutions like Buy Now - Pay Later methods (BNPL) or digital wallets. Making digital wallets an absolute must-have to reach these demographics.3 Globally, 44% of Millennials indicate that they use mobile wallets, while an additional 34% are interested in doing so.4 A study conducted in the US, UK, Canada, Germany, Austria, Bulgaria, and Italy, found that paying via a digital wallet (43%) is the most popular alternative payment method to credit (52%) and debit card (54%) payments. European countries especially, reported even higher numbers.5
Digital wallets offer a range of benefits:
- Easy to use. Quick and easy transactions from one account to another with just a few taps. Memorizing and re-entering card details are no longer required.
- Faster transactions. Transactions via digital wallets appear seamless and can happen within the blink of an eye.
- Secure transactions. They offer advanced security by storing user data securely with tokenization/encryption.
- Maximum flexibility. Users can easily accept payments and transfer money in different currencies. They can add funds or withdraw money instantly and at any time without seeking permission.
Digital wallets for your Black Friday checkout
ApplePay, Google Pay, and Samsung Pay are probably the most well-known names. However, there are quite a few other digital wallets out there. Let’s take a look at some of the top digital wallets that are available with MultiSafepay.
Apple Pay
Apple's digital wallet is suitable for all customers with an Apple device, serving millions of customers worldwide. Apple Pay can be used for online and in-store purchases. Payments are processed as credit card transactions. As MultiSafepay is its own acquirer and processor, we utilize our own infrastructure to ensure fast, secure payments. As a MultiSafepay merchant, contact your account manager to activate, and we’ll take care of the rest.
AliPay
AliPay is one of China's leading global digital wallets with over 520 million active users and more than 100 million daily transactions. Alipay is also rapidly conquering the European market, helping you reach Chinese customers both at home and abroad. It supports online, QR, and contactless POS payments, as well as international money transfers. Contact your account manager to activate, and we’ll take care of the rest.
PayPal
PayPals’s digital wallet, PayPal One Touch, is an extension of the standard service offered by PayPal. Available for Android and iOS, PayPal allows customers to make online purchases via any digital device, from smartphones to desktops. To activate this method you just need to add MultiSafepay to your PayPal account and your PayPal Merchant ID to your MultiSafepay account.
WeChat Pay
A leading global digital wallet that lets Chinese customers link their credit card or bank account to a digital wallet. WeChat Pay supports online, mobile, and QR payments, including Mini Program. As a MultiSafepay merchant, simply contact your account manager to activate, and we’ll take care of the rest.
Interested in digital wallets? Let's talk
Keeping our mission to help you build the perfect checkout for Black Friday in mind, let MultiSafepay help you adapt to your customers’ demands. Our payments experts are happy to help you identify which payment methods will offer the most value for your business. With more than 20 years of experience in ecommerce and a variety of tools, features, and digital payment solutions, we can help you adapt and stay ahead of the market.
How quickly can we set up digital wallets for you?
1 https://thepaypers.com/
2 https://thepaypers.com/
3 https://www.forbes.com/sites/boblegters/2021/05/19/consumer-ownership-of-digital-wallets-is-surging-but-will-the-trend-hold/?sh=11e9c2384980
4 https://www.fisglobal.com/en/insights/merchant-solutions-worldpay/article/generation-pay-millennial-payment-trends
5 https://www.paysafe.com/en/blog/lost-in-transaction-consumer-payment-trends-2021/
