Digital wallets have revolutionised payment systems and e-commerce companies are embracing them globally to create seamless experience, but also to interact with the consumer and collect smart data. While cashless solutions and digital wallets have become a lifestyle choice in Asia Pacific via Super Apps, the West will need to catch up by reassuring users of its safety but also of the real added value over cash or cards. New formats, incentives and voice are helping gradually bridge that gap.
The wallet war
Major technology companies have invested heavily in digital wallets, and the war is no longer only between Google Pay, Apple Pay or WeChat Pay. Those tech titans have paved the way for the propagation of non-payment players, offering new e-commerce possibilities in emerging markets, multifunctionality and rewards in developed ones.
Leveraging data, creating loyalty and launching innovative format seduce consumers in the West
Major groups are today using smart data and analytics in order to launch customised offers, creating loyalty. Digital wallet adoption in the West needs that extra incentive to convince consumers of its “real” added value . The proliferation of digital wallet wristbands in the travel and retail industries has also enticed consumers with their versatile usage, whether for paying goods, receiving updates on an attraction or interacting with a brand.
Super apps spur digital wallet expansion in Asia Pacific
The move towards super apps first emerged in China because of the market’s unique qualities, including its status as the world’s first so-called mobile-centric nation. Today Asia Pacific leads the world in the transition into using the mobile phone as a tool for commerce. In more recent years, all-in-one super apps have a positive effect on digital wallet adoption.
Concerns and challenges remain
Considerable security concerns of consumers over their financial information remain today and will need to be addressed by companies wishing to operate in this space. Companies must balance the desire for greater personalisation and convenience with rising privacy and security concerns.
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