The Crowded Field of Digital Wallets

mobile wallet

Where the next generation of payments is concerned, you put your money where your mouse is. (or phone is, whatever.)

The future of digital wallets has grown to be a rather crowded affair. This is, apparently, because everyone thinks that a one-size-fits-all future-proof solution is the way to go.

Sorry to break it to you guys, because really, there are no shortcuts in the world of payments. And mobile wallets still have a lot to prove in meeting the three key essentials to every customer’s benchmark for an effective payments experience, namely – Security, Speed and Convenience.

But wait, digital wallets aren’t exactly dead yet – just take a look at these “payment giants” with AliPay, PayPal, LevelUp, Apple, Starbucks and Amazon leading the way forward with their inventive brand of digital wallet utilities with over millions of active users and traction as digital methods of payment in both worlds, online and offline.

With so many fresh-faced digital wallet go-getters hoping to convince people to use their wallet as the preferred way of payment, it’s time for them to start reconsidering their costly venture into the crowded space of digital wallets.

On a brighter note, let’s review how these six leaders in the realm of payments have succeeded where most have failed.

Firstly, they gave consumers a compelling reason to begin their traction into the online digital wallet world. To begin, they got consumers to register a method of payment because not only do they feel obliged to make purchases in online marketplaces with security and ease, (Note that this is where Amazon, PayPal, AliPay and Appl are amazing in) consumers are also compelled to make a shift into the digital world when it comes to payments with physical merchants such as Starbucks and LevelUp.

These six players are shining examples of well-utilized digital wallets with millions of active users and traction as digital methods of payment both online and offline. They have traction as digital wallets online because that’s how they started – they got consumers to register a method of payment because there was a compelling reason for them to do that.

In a few cases it was because those consumers wanted to buy “products-in-demand” listed in online marketplaces as securely and easily as possible (think Amazon, PayPal, AliPay, and Apple).

In others, consumers were prompted by physical merchants to establish a digital wallet because there were financial and customer incentives to do so (Starbucks and LevelUp).

With the future led by “millennial” entrepreneurs that are born tech-savvy, possess an inherent hatred for traditional financial institutions and are constantly looking to change the way payments are being made and where “niche digital wallets” -  are concerned, would there still be any hope left in squeezing more into an already existing crowded space where “payment giants” are relentless in their bid to reign supreme?

[Image: iHuffpost]

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