5 trends driving growth of digital wallets
Merchant holdouts are finally warming to the likes of Apple Pay, years after the mobile wallet's launch. Competitive offerings have also flourished from mobile operating systems and phone providers like Google and Samsung, alternative payments providers such as China’s Alipay and even the enablement of P2P wallet providers such as Venmo to be used in apps such as Uber.
The major change Apple Pay brought was widespread industry support from financial institutions to allow their cards to be used in a third-party app, as well as using Apple's clout to get merchants to install NFC readers that would accept mobile wallets in-stores. As mobile wallet usage has grown, along with increased smartphone penetration levels, more use cases are coming to market, such as bill pay and transit fare.