The mobile-first, digital mindset is now penetrating the core of various industries, with the financial industry bearing special mention. Fintech and blockchain technology have become the cornerstones of the new economy, reshaping the way we define and manage our money. Now, it may be time to forego our physical wallets in favor of digital wallets.
The shift away from cash towards contactless and digital payment methods was accelerated by the global pandemic as consumers became more conscious of what they touched. However, while the surge in digital payments was prompted by COVID-19, recent studies show that it isn’t a trend that will dissipate as the virus becomes less pervasive.
Habits can be a powerful force, especially in the context of consumer behavior. With more people becoming accustomed to the convenience of digital wallets, it’s unlikely that payment preferences will revert to physical cash and credit cards in the future.
Digital Wallet Adoption Is On The Rise, Online And In-store
The 2021 Worldpay Global Payments Report from FIS covered the leading trends in the payment industry, examining data from over 40 global markets.
“Digital wallets remain the payment method of choice among global e-commerce consumers, accounting for 44.5% of e-commerce transaction volume in 2020, up 6.5% from 2019,” the report stated.
The report also revealed that while digital wallet adoption is set to continue rising, traditional payment methods, like credit and debit cards, appear to be on the decline.
“Our projections expect digital wallets to account for 51.7% of e-commerce payment volumes by 2024 with slight declines in credit cards (to 20.8%) and debit cards (to 12%),” it concluded.
Beyond e-commerce, the preference to pay with digital wallets is becoming more popular even for point-of-sale (POS) transactions. PYMNTs’ Mastering Multichannel Commerce Playbook: Digital Wallets edition, published in March, reported that 30% of global POS payments would be made through digital and mobile wallets by 2023.
Interest in digital assets is fueling adoption, too
As cryptocurrency adoption reached record highs this year, crypto holders have also contributed to the rise in digital wallet adoption. Cryptocurrency holders not only have the ability to store their digital assets in these wallets but also send them to other wallet users. No wonder a new ‘Generation Investor’ is emerging powered by these technologies.
Recent statistics indicate that the increase of wallet users also applies to the blockchain space. According to data from Statista, the number of blockchain wallet users globally has reached a new high of 73 million. Cryptocurrency spending, through these wallets, has also gone up.
If a retailer accepts cryptocurrency payments, then blockchain wallet users can pay directly from their wallet. However, while there has been an increase in merchants accepting cryptocurrency payments in recent years, users are still limited to where they can spend their digital assets, as it is a choice that is ultimately in the hands of the merchants.
For digital wallets to function effectively as a means to spend both fiat and cryptocurrency, it is essential that there is a universal payment method that can enable consumers to spend with their currency of choice, anywhere. That’s just one reason that LODEpay has built its proprietary wallet.
The Lodepay Wallet: Restoring Stability To Your Payments
Beyond digitizing gold and silver for the new economy, LODEpay has advanced its effort to enable seamless payments through the development of its wallet application. The LODEpay Wallet app makes it possible not only to store and spend digital gold and silver, but also access a variety of other stablecoins and digital assets, like ETH, USDC as well as traditional fiat currencies.
LODEpay’s digital precious metals can be spent anywhere in the United States, with plans to expand to new markets internationally soon. Through the app, U.S. users can load up virtual debit cards, which they can use to transact at any online purchasing experience where cards are accepted.
“We’ve launched our first card program to the U.S. that allows people to purchase, spend and send with their digital gold and silver anywhere digital transactions can be made,” said LODEpay COO Nicholas Prouten. “We’re also developing technology that will allow people to load up any credit/debit card solution a person may already have.”
The ultimate goal is to provide consumers with increased flexibility when it comes to paying for the products and services they want. To try the LODEpay Wallet, download the application on Android or Apple devices.
DISCLAIMER: This article was written by a third-party contributor and does not reflect the opinion of Born2Invest, its management, staff, or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
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