Analytics  |  Expertise  |  Technology   |   06.07.2023

The Rise of Mobile Wallet Apps: Transforming Business and Financial Inclusion in 2023

In today’s digital era, mobile wallet apps have emerged as powerful tools for businesses, banks, and retailers to enhance customer experience, drive revenue growth, and improve financial inclusion. With ever-growing mobile penetration rates, today’s customers can eventually leverage the numerous benefits of eWallet apps in their everyday lives. Once unbanked due to rural area, gender, age and other restrictions, people now start enjoying full-scale access to digital financial services via eWallets. This really shows that we are witnessing the global shift from a cash-heavy to a cashlite society.

This article is to elaborate on how businesses like banks and retailers can gain competitive advantages. Let’s dive into what the implementation of mobile wallet apps can bring, including new acquisition opportunities, revenue streams, and the promotion of financial inclusion among underserved populations.

Mobile wallet stats
Mobile wallet apps statistics 2023

Mobile wallet apps: Improving customer experiences

Today, mobile wallet apps provide customers with the convenience of making payments, managing finances, and accessing services from their smartphones. With a mobile wallet app, customers can securely store their payment information, eliminating the need to carry physical cards or cash. By leveraging technologies such as near field communication (NFC) and quick response (QR) codes, transactions can be completed swiftly and seamlessly.

According to a study conducted by Mastercard, 76% of consumers believe that mobile wallets offer a more convenient payment method compared to traditional options. What’s more, PYMNTS revealed that 51% of Gen Z consumers feel that most or all uses of physical wallets can be replaced by mobile wallets. 

Given this, providing customers with reliable digital wallets appears to be the right business development strategy. Mobile wallet apps are a long-awaited solution consumers expect from brands.  

eWallets: New acquisition opportunities for banks and retailers

Integrating a mobile wallet app offers banks and retailers the opportunity to tap into previously untapped customer segments. By targeting tech-savvy millennials and Gen Z consumers who prefer digital payment solutions, businesses can attract and retain a new generation of customers. Moreover, mobile wallet apps enable cost-efficient marketing campaigns, loyalty programs, and personalized rewards, fostering customer engagement and loyalty. So, instead of sticking to traditional low-ROI customer acquisition tactics, why not be the first to win previously underserved audiences? A report by Deloitte suggests that offering a mobile wallet can help banks and retailers expand their customer base by reaching unbanked and underbanked populations, which can lead to increased revenues. 

How digital wallets contribute to diversifying revenue streams

Mobile wallet apps enable banks and retailers to diversify their revenue streams through various means, including transaction fees, partnerships, and value-added services. By charging a small fee for each transaction, financial institutions can generate additional revenue. Furthermore, collaboration with merchants and third-party service providers allows for targeted advertising and partnerships, unlocking new revenue opportunities.

👉 Read more on the advanced WaaS (Wallet-as-a-Service) model that helps banks and retailers launch their own digital wallet business. 

For example, integrating loyalty rewards platforms within a mobile wallet app can incentivize customers to make repeat purchases, benefiting both retailers and financial institutions. According to a recent Juniper Research report, there will be more than 5.2 billion digital wallet users worldwide in 2026, up from 3.4 billion in 2023. This represents a significant growth of more than 53%. It means that revenue from mobile wallet transactions will drastically exceed in the next 3 years, indicating the immense growth potential in this space.

Advancing financial inclusion with digital wallets

One of the most significant benefits of mobile wallet apps is their potential to improve financial inclusion. In many developing countries, large populations remain unbanked or underbanked, lacking access to basic financial services. As Mikhail Miro, CEO and Co-Founder of Wallet Factory, dwells on in his expert article in Forbes, eWallets can help a great deal in addressing financial inclusion challenges. Mobile wallets provide a cost-effective and accessible solution, enabling individuals to store, send, and receive money, even without a traditional bank account. 

By leveraging mobile network coverage and increasing smartphone penetration, mobile wallet apps can empower underserved populations to participate in the formal economy, fostering economic growth and reducing poverty. Findings by the World Bank state that digital financial services, including mobile wallets, have the potential to reach 1.4 billion currently unbanked individuals globally.

Final thought

As we delve further into 2023, it is evident that mobile wallet apps are transforming the way businesses, banks, and retailers interact with their customers. The integration of an eWallet app offers numerous benefits, including convenience, new acquisition opportunities, diversified revenue streams, and improved financial inclusion. By embracing mobile wallet technology, businesses can enhance customer experience, drive revenue growth, and unlock the potential of previously untapped markets. As the digital revolution continues to shape the financial landscape, it is imperative for banks and retailers to leverage mobile wallet apps as a powerful tool to stay ahead in the rapidly evolving FinTech industry.

WF Team
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