According to a global study, more than five billion people will use digital wallets as “super apps” drive adoption in developing countries by 2026.
The Juniper Research study says the number of global users will reach 5.2 billion over the next four years, compared to 3.4 billion this year.
Juniper found that the development will come in countries that are considered “cash heavy,” which are described as “super apps” that combine multiple services as well as offer the ability to make payments.
The Philippines, Thailand and Vietnam are expected to see the fastest growth among Southeast Asian countries and Juniper predicts that 75% of the population of these countries will adopt digital wallets in the next four years.
“These rapidly growing markets represent a significant opportunity for digital wallet vendors, but they must act wisely to maximize their position,” said study co-author Damla Sat of Juniper Research. “A highly competitive wallet landscape means sellers must differentiate themselves by integrating machine learning to provide spending insights and introduce new services such as wealth management to add value.”
The study stated that payments using QR codes will be the most used digital wallet transaction type by 2026, with 380 billion transactions predicted globally in that year. QR code payment will account for 40% of all transactions by volume.
Another Juniper study this April found the value of digital wallet payments to exceed $12tn in 2026. It said PayPal was the leading digital wallet provider, followed by Alipay, WeChat Pay, Apple Pay and Google Pay.
Digital payment technologies found an unexpected surge in demand during the COVID-19 pandemic, when governments set rules to prevent physical contact and consumers were forced to use digital services.
In 2021, PayPal said the pandemic caused a 24% increase in total active customer accounts, as more and more consumers turned to online purchases.
