Top Digital Wallet Trends for a Contactless Future

Digitalization has touched almost all sectors and industries, resulting in contactless transactions all over the world. It has become one of the tools for enhancing the need for digital banking services. May it be a million-dollar business or a start-up, everyone is keen to integrate digital payment for gaining high popularity and an increased customer base.

In the time of the pandemic, this is one of the most widely used solutions worldwide. For everyday needs, people have started preferring online shopping and so going cashless using digital wallets.

It not only made the life of the users convenient but also smooth, fast, and secure. Digital wallets or e-wallets are applications that can have a direct link with the user’s account for ease of transactions.

In this blog, we would be highlighting some of the most significant digital wallet trends for a contactless and cashless future, so that you can also use any of such trends for building sound applications for your business. Let’s check:

Top Digital Wallet Trends for a Contactless Future

1.??????Payments based on Near Field Communication

2.??????Cloud Payments

3.??????Voice-Activated Digital Payments

4.??????Biometric Authentication

5.??????QR Codes

6.??????Machine Learning & Artificial Intelligence

7.??????Cryptocurrency

8.??????Loyalty Program

9.??????5G and Hyperconnectivity

1. Payments based on Near Field Communication

NFC-based payments have been one of the most prevailing trends in e-wallet payments. Users can pay directly just by tapping on the cards. Such sort of payments are gaining attention day by day and seems to have a promising future ahead. NFC offers encrypted data rapidly to the POS device. In comparison with the usual PIN technology, NFC is more unique and advanced.

2. Cloud Payments

The cloud is the core of digitalization. Businesses are looking to hire e-wallet app developers to integrate e-wallet payments in the applications with the help of the cloud. To eliminate the issue of delayed payments, cloud payments came into the picture.

In the maximum of online transactions, users face serious technical issues. Thus, the use of a cloud network based on distant servers helps reduce all such issues and offers more secure and rapid digital payments.

3. Voice-Activated Digital Payments

Businesses have already started integrating voice-based technologies such as virtual assistants for offering better customer service. In developed nations, there is a huge demand for such technologies and businesses are looking to hire ewallet app development company that provide digital wallet app development services.

The applications are integrated with voice AI for better payment capabilities. As a result of this innovation, the consumer experience has gone to the next level and also helped in gaining a better customer base.

Users have so much relied on applications that have voice-integrated systems. As per the research, the total number of people using digital voice assistants would reach 8 billion by 2023 from 2.5 billion in 2018.

4. Biometric Authentication

With the wide popularity of digital payments, the safety and security concerns of customers have been raised a lot. There are so many possibilities of theft and fraud when people make these online payments. To overcome such issues, biometric-based authentication is integrated into the applications.

Businesses are looking forward to hiring a software development company that can offer proficient mobile wallet development services for building scalable solutions. When biometric technology is integrated into the applications, the passwords are replaced by security techniques like facial recognition, fingerprint scanning, heartbeat analysis, etc.

These are unique and no one can have unauthorized access. The integration of biometric technology will surely increase in the coming future as one of the most significant trends in digital wallet payments as it is a safer and more efficient way of making e-wallet payments.

5. QR Codes

There are multiple transactions users do daily and it might be a reason for privacy concerns to share your contact number with strange or random people now and then. To make it simple and from the safety aspects, there has been wide usage of QR codes in digital payments. Users just need to scan the QR code and make the payment.

From not only a safety perspective but also it reduces the chances of errors as there is no need to type the phone number. With scanning, fast and accurate payments are done. The integration of QR codes is widely popular across the globe and has become one of the most common means of contactless payments.

Businesses hire a mobile app development company to build applications that can integrate such QR code technology for fast and smooth payments and improved user experience. Also, these QR codes are a great way of marketing and promoting businesses as users also scan these codes for getting additional promotional offers.

As per the data, in the year 2012, the number of users who have scanned a QR code increased by a percentage of 15.3 in comparison with that of 2022. And also, the number is projected to increase and have constant growth. It is forecasted that 99.5 million users would be scanning OR codes by the year 2025.

6. Machine Learning & Artificial Intelligence

To make the users’ day-to-day payment activities more flexible, smooth, and convenient, one of the most proficient digital wallet trends is AI-powered e-wallets. These e-wallets automate the daily transactions of consumers.

Machine learning and artificial intelligence are the two powerful technology trends that are ruling the business world and almost all industries are looking forward to integrating these technologies into their businesses and applications. The primary aim of integrating them into digital wallets is for preventing thefts and cyber frauds as well as in identifying software threats.

With the inclusion of ML and AI, there can be detected all the frauds with the help of machine learning algorithms. With the help of such applications integrated with ML and AI, businesses can track the entire transaction history, check and analyze the fraud patterns, and can easily spot them in the early stage for preventing any such further future payments.

In comparison with traditional ways of information processing, ML algorithms work in a more efficient and better way. Because of the continuous increase in demand for applications integrated with machine learning and artificial intelligence, businesses get a software development company for hire to build such scalable and reliable solutions to remain in the competition.

7. Cryptocurrency

For contactless or digital payments, cryptocurrency wallets have appeared as a catalyst as they are successful in storing and managing cryptocurrencies and blockchain assets. They help the users to receive, spend, as well as trade the currencies using these cryptocurrency-integrated e-wallets.

Various currencies can be traded using these wallets. In the period of the last 5 years, the use of cryptocurrency wallets has almost increased 700% reaching nearly 78 million users. And it is believed that these figures would continue to rise with the increased popularity and integration of this technology.

Other than the large businesses, now medium-scale, small-scale, and even start-ups are embracing the bitcoin ad cryptocurrency trend for becoming more agile. The integration of such technologies has eliminated the need for third parties while doing digital transactions.

Furthermore, the primary benefits attained by the users are - to have secure and low-cost transitions. Thus, several businesses are considering utilizing the potential of cryptocurrency and integrating this technology into digital wallets. Hence, this has also raised the demand for experience blockchain development company that have expert developers for building such solutions.

8. Loyalty Program

The next top digital wallet trend for a contactless future is the loyalty program. This is one of the best ways to retain customers by launching a reward program. These digital wallets are also used for gaining a lot of rewards and benefits under the loyalty program.

The users are more likely to make payments using digital wallets if in return they get some or other exciting rewards for the e-wallet transactions made by them.

Several offers, discounts, and rewards are received on making regular payments through digital wallets. Hence, a mobile-drive digital loyalty program is a significant trend in the present time.

A business can hire a good eWallet app development company that can build an application with the integration of digital loyalty programs for increasing the customer base and retaining existing customers.

9. 5G and Hyperconnectivity

There is also a great impact of hyper-connectivity and 5G on digital payments. Businesses have started relying on modern technologies for gaining huge benefits. There is a great role of speed when users make digital transactions. There is a need to have a high-speed network.

And thus, hyper-connectivity and a 5G network can enable faster completion of transactions from any location. Also, there would be a huge demand for IoT-based transactions in the coming time. And it would help in integrating multiple payment options with the connected devices.

Conclusion

Digital wallets are used across the globe and on daily basis. There are lot many e-wallet applications that are gaining traction; this demotes the huge chances of the future to be certainly cashless.

Businesses have started recognizing how bright the future of digital wallets is, thus they want to know the latest e-wallet trends. They are eager to use modern technologies to remain in existence for the coming years.

Thus, if you are also running a business, then you can surely use any of the above-mentioned digital wallet trends to create a digital wallet application and have a huge customer base.?