The banking industry has been changing over the years thanks to the use of technology suggested Bahaa Abdul Hussein. Digital wallets are one of the latest technological innovations the banking industry had adopted. Online banking has been in use for quite some time now. Digital wallets have taken online banking to the next level. Indeed, digital wallets are reshaping the way the banking industry is working.
Digital wallets and banking
A digital wallet is an app on your mobile phone or other device. The app allows you to use the device like a physical wallet. Just as you would take out cash or your card from your wallet to make payments, you can use your digital wallet to pay for transactions. Your digital wallet is linked to your bank account, so all transactions go through the bank account.
The convenience and simplicity of use has led to digital wallets gaining in acceptance. In 2022, there were 3.4 billion people worldwide using digital wallets. It is estimated that by 2026, this number will go up to 5.2 billion. Bank customers no longer need to visit bank branches or login to the bank’s website. They can use the digital wallet to make payments and transfer money to others. It is a digital disruption that has changed the way the banking industry functions.
There are many factors that have resulted in digital wallets being widely accepted:
- The convenience and ease of use makes digital wallets popular. The wallets can be used to make instant payments.
- Even people who are not tech-savvy can use digital wallets.
- Sellers and merchants are increasingly accepting digital wallet payments as it convenient for them.
- There is greater awareness today on the benefits of digital wallets and its security features.
- Digital wallets are being made fool-proof to prevent fraud and cybercrime.
Banks can experience various benefits by using digital wallets:
- It allows them to provide convenience and a better experience for customers.
- Helps in getting customer data on payments that can help them offer personalized products and services.
- Ensures financial inclusion allowing banks to increase their customer base.
- Banks can partner with businesses and use the partnership for improving customer loyalty and engagement.
Conclusion
Banks across the world have adopted digital wallets and are offering this feature to their customers. Its use will increase rapidly in the day to come. It won’t be surprising if there are new technological innovations that make digital wallets all the more useful.
The blog has been authored by Bahaa Abdul Hussein and has been published by the editorial board of Fintek Diary. For more information in www.fintekdiary.com.
