Wallets of Convenience and What it Means for the Fintech

Wallets of Convenience and What it Means for the Fintech

The ongoing pandemic saw a crisis like never before, but the latest advancements in technology made it possible for all daily operations to move forward seamlessly leading us to adopt the ‘new normal’.

One of the major adoptions in technology was the latest fintech services that introduced digital wallets during the pandemic. Its popularity has reached a level where it is foreseen to threaten the lifespan of traditional banks and credit card issuers. The convenience digital payments are offering merchants and individuals alike makes it possible for digital wallet spending to double by 2025.

Contactless payment options have been in existence for some time now. Nevertheless, today its importance is rising like never before since it is seen to be the most convenient and safest mode of money transaction. This has helped consumers to not only shop at their convenience but also to minimize personal contact for transactions.

The popularity of digital wallets reached the point it is on now, thanks to the increasing concern of hygiene, wherewith the use of digital wallets you wouldn’t have to touch and receive or give cash, or even enter your PIN once you swipe your card.

“As a result, contactless payments have witnessed a dramatic upsurge even within inherently cash-based economies, such as Japan and Germany, and amongst new user groups, such as older shoppers,” as quoted by the new study from Juniper Research.

This upsurge is turning the convenience into a requirement, as nearly every business enterprise have begun to follow the use of digital wallets, which makes it easier for receiving and tracking payments and identifying if any mistakes or fraud payments have been made.

Researchers have predicted the trend of contactless payments or digital wallets are not just a passing phase but here to stay and be improved.

Speaking about the other side of the coin, there still exists a portion of card users who have never used or heard of contactless payment or digital wallets. Security of contactless cards is another area of concern for customers. But the convenience of the same that provides so much effortless and time-saving transactions, along with being safe to a certain extend overpowers the other side making digital payments remain in the top chain.

The rise of digital wallets poses both an opportunity and threat to traditional banking and financial institutions. What the banks can do is adapt to the changing times and evolving technology . They can create a competitive edge of their own by spoiling their customers with the choice of payment methods like Wi-Fi cards (contactless), UPIs etc. that will make the transaction safe and obviously convenient.

With the immense popularity touch-free payments have among customers and retailers alike, payments solutions companies are ready to introduce newer models of contactless payments to keep up with the increasing demands.

A writer with a flair to convert technical jargons into creative pieces, keeping the reader in mind ensuring to communicate with them through written words and sentences. Always in love with words, after writing, finds peace and needed stress relief from novels and short stories and even a little calming music can do the trick.

Treasa Antony


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