Convenience, Increased Accessibility Driving Digital Wallet Growth

Convenience and increased accessibility are two of the key reasons the global digital wallet market is growing. That’s according to a new report from Research and Markets looking at growth and demand for digital wallets through 2020.

In a press release highlighting the new report, Research and Markets said increased use of mobile commerce and different functionalities provided by mobile wallets are some of the trends that are happening now and will continue in the global market.

The new report also found that, around the globe, Asia-Pacific dominated the digital wallet market in 2014 driven by the evolution of 4G networks. “The increasing advancements in next-generation, high-speed mobile networks, known as Long-Term Evolution (LTE), are expected to change the landscape of Asia-Pacific, as the developing countries of the region are leading the race to implement the 4G technology,” wrote Research and Markets in the press release. “The growing population in developing countries, such as China and India, is a major driving force, which is influencing the growth of the region.”

What’s more, the research firm found that one of the main drivers of the growth of mobile wallets in China is the increase of internet penetration, which is being driven by the growing usage of smartphones. In Latin America, digital wallets are being driven by heavy consumer spending in Brazil, with Brazil becoming the most profitable credit card market in Latin America.

While digital wallets are taking off internationally, that’s not the case in the U.S. According to a report back in September, Reuters cited Gordon Smith, chief executive of consumer banking at JPMorgan Chase, as saying that, even with the emergence of payments platforms as diverse as Apple Pay, Samsung Pay and Android Pay, the total amount of payments used via those services accounts for less than 1 percent of payments at retailers.