We all know that digital payments and e-wallets are all the rage now, but what does the future hold for this part of the money transfer industry? Here is a quick look at what you can expect from the future of e-wallets, digital banking, and more! For professional finance advice and help, check out GlobePax.
More and more people own smartphones, and it is estimated that about 3.8 billion people in the world own one. Therefore, people are learning the convenience of digital payment methods, so there is a constant increase of e-wallets. A lot of people are also finding alternative payment platforms like GlobePax to get more kinds of e-wallets since everyone is realizing that each payment platform has its own unique benefits.
Back in the day, it was very difficult for people in more rural areas to own bank account because they lived very far from banks. Therefore, it was difficult for them to send and receive money, so people in rural areas heavily relied on physical cash. Thankfully, they do not have to do that if they have a phone and an internet connection thanks to e-wallets. People in rural areas can receive money from people in other countries or more populated cities.
Additionally, smartphones and e-wallets can reach the unbanked who simply do not want to own a traditional bank account. Thankfully, these people can sign up for alternative payment platforms. These payment platforms can hold your money, send cash, receive funds, and more – it works a lot like a regular bank account. Therefore, it is ideal for people who feel some distrust to traditional bank accounts.
A Cashless Society
Non-cash payments increase in almost every country every year. For instance, the European Central Bank reported that non-cash payments increased by about 8.1% in 2019, which is a huge increase in a year’s time. Many countries are slowly encouraging their business owners to prefer digital payment methods to gradually turn into a cashless society. For instance, the majority of China use their phone to make payments; barely anyone there has cash on hand.
However, do not expect to put all of your money into an e-wallet anytime soon. We may not reach a nearly completely cashless society until 2040 because there are still many people in developing countries that do not have phones and such. Therefore, we should only expect slow but steady movement towards a cashless society.
Loyalty and Payments
Many companies have realized that they can increase their engagement with customers by participating in loyalty brands through digital payment services and mobile bankin. Research found that most customers only participated in half of their loyalty programs, and it was mostly because it was already partnered with their payment services. Otherwise, they would not remember to use them.
Therefore, customers were more likely to stay loyal to a brand and continue purchasing if they were able to access the loyalty program through their phones. Why? Because it is almost always with them.
We have a lot to look forward to in the future of e-wallets as our society and world progress.