Bigger and faster than I thought
I found this article today which caught me a bit by surprise. 50% of global eCommerce is already paid by using Digital Wallets like GooglePay and ApplePay, and this will grow to more than 60% in the coming few years. If you look at the point of sale, like Supermarkets, the growth will supposedly be even higher, from 30% today to 46% until 2027.
That’s big numbers imo and a huge chunk. Cash and also classic plastic card payments are declining. And I think the rise of cryptocurrencies will further drive this trend.
Why?
The study published on the website also revealed the reasons why people are changing their payment behavior:
Who will profit?
As we can imagine the tech companies offering these digital wallets, like Apple and Alphabet/Google, will profit since every transaction triggers a little cost. In addition Credit Card companies like Visa, Mastercard or American Express will profit too since they are offering the payment network behind all of these digital transactions at the moment. You need a card that is registered within the payment app.
The conveniance aspect is from my experience the most important one and the reason why I personally use more and more ApplePay. No need to hustle out cards or cash at the Supermarket cash out. Also online its a double tap and you‘re done.
Privacy of these transactions is an issue that’s certainly the other side of the story. If a Company has all this data of yours it could use it in ways you don‘t want. Convenience vs possible lacks of privacy…🫤
Wouldn‘t it be great if we could have both? Conveniance AND Privacy?
Could cryptocurrencies improve this? Do you use these corporate digital wallets a lot?