Global digital wallet spend could exceed $10trn in 2025
Representing an 83% increase on 2020’s figure ($5.5trn), the company infers that the shifting consumer preference for adopting digital is a direct result of the COVID-19 pandemic, and that this could be one of its most enduring legacies.
Digital wallets are also becoming increasingly secure and convenient thanks to the proliferation of remote and contactless payments. Juniper also estimates that half of all expenditures will be digital/ecommerce-based by 2025, a 14% increase on 2020’s figure.
Rolling with the changes
“Merchants must base their payment strategies around wallet acceptance in order to support a digitally-engaged addressable market, but must also judge the right wallets to target, or they will be lumbered with increased costs and limited benefits,” said Alexandria Sadler, co-author of the research.
stated that the underlying revenue model between payment systems has, so far, remained virtually identical throughout the evolution of physical currency to cards and digital wallets. However, this could all be about to change:
“[...] as digital payments methods, omnichannel, and instant payments converge to transform the payments industry, revenue models are likely to change, too.”
Digital wallets: Permeating everyday life
Juniper’s study correlates with the views expressed by Michael Kaplan, Chief Revenue Officer and General Manager of PayNearMe, in an with FinTech Magazine. Specialising in bringing the convenience of digital wallet payments to everyday consumer expenditures such as bills, Kaplan similarly predicted growth for the industry:
“The use of digital wallets will continue to grow steadily in the next decade, and one reason for that relates to bill pay.
“Yes, some people already pay for groceries or shop online with their Google or Apple Pay accounts. It’s a bit of a novelty and relatively convenient, but it’s when consumers start paying bills through the digital wallet that they will fully appreciate it for the enormous ease and time savings it gives them.
“As they pay their bills month after month and click on that ‘Add to Wallet’ button, they will become more and more comfortable with that process and more likely to use it for all their money-related tasks. All of us in fintech should be seeking ways to enable digital wallet usage to take advantage of this important trend.”
Tink partners with Novalnet AG for open banking payments
The Munich-based fintech Novalnet AG, which was founded in 2007 and is one of Europe’s leadingfintech companies, has announced a new partnership with Tink, the Swedish open banking platform currently connected to more than 3,400 European banks.
Novalnet AG delivers payment solutions and fully automated services, from checkout to debt collection. Its solutions are also available worldwide.
According to reports, the fintech company plans to launch a real-time payments feature for merchants across Europe, to expand its current services and enhance the transaction experience it operates through its platform.
The new feature, says Novalnet, will revolutionise payments for ecommerce with transactions being credited to merchant’s accounts almost instantly.
Novalnet partnership with Tink
By partnering with Tink for payment initiation services (PIS) technology, Novalnet will take previous region-specific payment methods and offer a new unified digital payments service to its merchants across Europe.
The fintech’s real-time merchant payments feature, which will be launched initially in Germany and the United Kingdom, will then be integrated across other European markets during 2021.
Speaking about the new collaboration, Emmanuel Kirse, COO of Novalnet, explained, "We expect great things from our strategic partnership with Tink, which is a significant development for both parties.
“With Tink, Novalnet can offer a new set of open banking-related solutions in Europe. The new opportunities offered by this partnership will help both Tink and Novalnet grow together, along with our merchants."
Cyrosch Kalateh, Regional Director for the DACH region at Tink said, “Our partnership with Novalnet is a big step for Tink in the German market, and we are excited to work together to bring new, innovative payments services to merchants across Europe.”
He added, “At the end of 2020 Tink committed to expanding its payment initiation services from five to 10 markets, fuelled by an €85mn investment round. We are proud to add Germany to this list by announcing we have now fully launched Tink’s PIS services in this market.”
Image credit: Novalnet AG