Digital wallet:
It was recently reported that the total number of digital wallet users will exceed 5.2 billion globally by 2026, up from 3.4 billion in 2022, representing strong growth of over 53 per cent, a report said on Tuesday.
The findings, by Juniper Research, predicted that the presence of "superapps" will drive digital wallet use in developing countries that are currently considered cash-heavy.
"These rapidly growing markets represent a significant opportunity for digital wallet vendors, but they must work intelligently to maximise their position," Damla Sat, research co-author, said in a statement.
"A highly competitive wallets' landscape means that vendors must differentiate themselves by integrating machine learning to provide spending insights and introduce new services such as wealth management to add value," Sat added.
The research also predicted that the adoption of digital wallets will be near 75 per cent of the population in each of these countries by 2026. It cited the rising access to online and mobile commerce services as the driving forces behind the use of digital wallets.
Additionally, the research identified QR code payments as the most popular digital wallet transaction type in 2026, reaching 380 billion transactions globally and accounting for over 40 per cent of all transactions by volume.
However, as usage within markets including China and India reaches its apex, vendors must innovate to remain competitive in entering new geographic markets, the research said.
Therefore, the research recommends that QR code payment vendors integrate loyalty features and personalised marketing capabilities to incentivise merchant acceptance, which will be critical to driving adoption.
The research identified three countries in the Asia Pacific primed for rapid growth over the next four years -- the Philippines, Thailand and Vietnam.
