Types of Ewallets and Their Issues & Challenges in 2022

2. Global E-Wallet Market By the end of 2023, the global E-wallet market is expected to grow to USD 2.1 trillion with a CAGR (Compound Annual Growth Rate) of 15%.

3. Introduction The emergence of eCommerce and the digital economy calls for new payment methods in the market. The online-only shift of some buyers has forced the digital ecosystem to migrate from cash payments to plastic cards, and now it is taking a leap towards contactless payments. Contactless payment can be made through digital channels held in the cloud or on the digital wallets (E-wallet). As the world of digital payments is still evolving, industry experts address it with a variety of names such as mobile banking apps digital money, e-money, micropayments, and many others. Also, there are several types of e wallets available in the market that make contactless payments a reality.

4. In contrast to the traditional cash/card payment methods, E-wallet is built on encrypted software technology instead of an analogue wallet. It provides a secure environment for the users to store ‘n’ numbers of debit/credit cards and bank accounts, mitigating the need to fill up payment details on every monetary transaction. Most of the customer-facing Ewalletservices operate through smartphone apps. It requires users to register within the apps and create an E-wallet profile that grants them access to make instant payments.

5. Types of E-wallets When it comes to types of e wallets, the market is divided into three categories, closed E-wallets, semi-closed E-wallets, and Open E-wallets.  In the case of closed E-wallets, the user can only facilitate payments to the wallet issuer only. Whereas semi-closed E-wallets allow users to get the financial services by only those merchants which are allowed by the wallet issuer. Both the closed and semi-closed E-wallets types don’t permit cash withdrawals. The open E-wallets goes beyond the limit of closed and semi-closed and also allow users to withdraw money via ATMs or Banking correspondents. Among all the types of e wallets, open e-wallets are the most popular ones.

6. E-wallets by Mode The evolution of E-wallets has introduced us with new technologies which include digital wallets and mobile payments. These two modes of Ewalletpaymentmay sound identical but are very different. Almost every type of e-wallets require users to store their payment information such as bank accounts and Credit/Debit cards and allow them to pay at any POS terminal. Digital wallets users are not required to carry their plastic money along with them as the wallet directly pulls out money from the accounts. However, the digital wallets cannot keep cash balance within the application.

7. Digital Wallet Trends for 2022 Financial technologies such as Cryptocurrency, IoT, NFC, and AI are the ones that will pave the success of e-wallets in the upcoming years. The realisation of AI-powered e-wallets that will automate the routine transactions will ease out our day-to-day payment activities. Similarly, the digital wallet trends for 2021 include e-wallets capable of making payment via NFC (Near Field Communication) while keeping the financial data secure through blockchain technology. There are endless possibilities for implementing innovative technologies in the payment industry.

8. Challenges with Ewallets

9. Conclusion Now when you see the bright future of all the three types of E-wallets, it’s time to move to action and bring your financial technology business to life. The Nimble AppGenie team would be happy to offer its services to help you achieve your goal. We are well versed in Ewallet app development and have the appropriate experience. Our experts can guide you through all the challenges occurring while developing your Ewallets. We will be your best choice for technology services in the financial domain.

10. Thank You If you have any query ? Contact: +1 920-354-6944, +44 207-459-4465 Visit: www.nimbleappgenie.com