It has always been claimed that ‘cash is king.’ However, increasingly that is not the case, and digital payment options are now normalized. We expect to be able to use our phones to pay wherever we go. Before the pandemic, many places imposed minimum spending limits for contactless transactions. Now it is quite rare to have to use cash, and many places advertise as ‘card only.’
Card payments are not restricted to the plastic versions either. According to the latest calculations from Juniper Research, by 2026, there will be 4.7 billion phones in service with an eWallet enabled. That is a 57% increase in four years. This will translate into a massive increase in the value and number of mobile wallet transactions around the globe.
The interesting consideration is how this will affect the millions of mobile-first consumers who do not have bank accounts or traditional payment cards. There are many reasons that people fall into this category, and companies will be looking to expand their reach to this target audience, who in the past relied on cash.
A prime example of how we have moved away from cash is the way in which we pay for parking or road tolls. In the past, we would feed coins into a meter and be issued a paper ticket to put in our windscreens. In many locations, cash is no longer an option. For example, in the UK, crossing the River Mersey involves a toll, but there are no toll booths, and the transaction must be completed online using MerseyFlow. In addition, many off-street parking spaces and car parks require users to download apps like Just Park, Pay By Phone, and RingGo.
The world of online casinos and betting is another environment in which only digital payments are accepted. Online gambling establishments cannot take cash without physical presence or products. Fortunately, payment options are available for people who, for whatever reason, cannot or do not want to link their bank account to their casino account. Customers can look out for a casino that accepts Boku, like NetBet, and be playing in no time at all.
Boku is a mobile payment processing platform that allows people to charge digital services and goods to their mobile phones or digital wallet. It gives them the same access they would have using conventional payment options, but no credit card or bank account is required. It is a convenient way to pay for games, entertainment, and social media services.
Global digital entertainment is on the rise. The African market is expected to grow by 60% for video streaming in the next four years and Asia by 58%. Gaming growth in these markets is also forecast to increase by 40% in the same period.
Netflix has been particularly successful in acquiring new subscribers in Asia in 2022. Their payment strategy included allowing subscribers to use local payment methods like mobile wallets and carrier billing. The company saw a three-fold increase in new members signing up using alternative payment methods. It has now adopted the same strategy in other markets.
The market for digital content is on the rise. Statista says that worldwide revenue from video games is set to grow 38% between 2022 and 2026. This will see incomes rise from $197 billion to $271.8 billion for gaming. In addition, video on demand is forecast to increase by 56%, with sales jumping from $94.9 billion to $147.9 billion in the same period.
The ubiquity of mobile phones means that many services can only be accessed with an app or through mobile-optimized websites these days. Therefore, it should come as no surprise to anyone that the fintech companies are creating solutions so companies can capitalize on the market opportunities. eWallets might have seemed like a gimmick when they first appeared on smartphones. However, in today’s increasingly digital world, they are an essential part of the payment infrastructure.
