Tech-savvy consumers are always looking for ways to simplify transactions and streamline their day-to-day interactions with their favorite brands. When tap-to-pay credit cards hit the scene a few years ago, the latest generation of consumers quickly embraced this new technology.
While tap-to-pay cards remain a popular payment tool, they’re quickly being overshadowed by the next big thing in digital payments: mobile devices with built-in digital wallet applications.
Cumulatively, mobile payment application transaction volume hit $1.7 billion in 2021, an increase of approximately 27% from the previous year. This represents a significant single-year jump, even for a technology as popular as digital wallets.
Why Consumers Love Digital Wallets
According to data from 2022, 75% of consumers use mobile wallets. The widespread adoption of digital wallets shouldn’t come as a surprise — modern consumers value convenience, efficiency, and flexibility when making purchases.
Solutions like Apple Pay and Google Pay allow consumers to quickly make purchases not only in person but also on their favorite websites.
Users can place delivery orders, purchase clothing from their go-to brands, and complete transactions in seconds. Depending on the site, they may not even have to enter their delivery address. Talk about convenience!
What These Trends Mean for Merchants
Brick-and-mortar retailers and digital merchants now face more competition than ever before. Regardless of the industries they operate in, retailers always look for ways to stand out and make their brands more appealing to consumers. While the shift toward digital wallets poses a new challenge for retailers, it also creates an excellent opportunity to streamline the buying process.
If you’re a retailer interested in removing friction from the consumer journey, Simpay’s total business solutions can help.
We’ll provide the tools to manage transactions, process payments, and track your revenue. Our total business solutions also simplify the checkout process and enable you to accept digital payments like Apple Pay and Google Pay.
The Apple vs. Android Battle Rages On
Apple and Google seem locked in a perpetual battle for mobile device market supremacy. The two companies have jockeyed for the number-one spot in the U.S. and global markets for years. Apple is currently winning, at least in the United States.
As of 2022, approximately three out of four iPhone users had activated and begun using Apple Pay. Google Pay adoption among U.S. Android users remains at a meager 41%, although adoption is upwards of 50% in Russia and above 80% in India.
In light of these statistics, American merchants should prioritize implementing Apple Pay processing capabilities before shifting their attention to Google Pay. Doing so will enable them to tap into a larger market and reach more users.
Looking Ahead to the Future of Consumer Spending
If digital wallet adoption continues to grow at this accelerated rate, it will likely become the primary method of engaging in both in-person and online transactions. Merchants in all verticals must modernize their payment processing capabilities to keep pace with the global trend.
Those who do will increase their ability to compete within their respective industries. However, those who fail to adapt will inadvertently add friction to the purchasing process and may alienate segments of their target audience.