Looking to expand your business globally?
Adding local payment methods is a crucial part of expansion as only around 10% of all global consumers own a credit card. Out of local payment methods, mobile wallets have grown to be dominant.
In addition to providing a simple user experience for online transactions, mobile wallets have become popular in emerging markets thanks to several other important factors.
The key factors that make mobile wallets attractive to consumers in emerging markets are:
Money storage: Most Western mobile wallets connect the user’s credit card or bank account to the wallet and the money is kept on the card or account until a transaction happens. Mobile wallets in emerging markets let users store money within the wallet, giving cardless and bankless users access to online payments.
Funding sources: Emerging markets mobile wallets do not allow the user to pay only from their bank card or account, but also load money onto the wallet from physical retail locations. These include retail stores, dedicated kiosks and ridesharing drivers who act similarly to bank tellers.
Wallet use cases: While Western mobile wallets are primarily used for making point-of-sale (POS) and in online transactions more convenient, emerging markets mobile wallets also enable consumers to access new, previously cash-based services. These include loans, utility bill payments, transportation ticketing, ride-hailing, food delivery, healthcare payments, hotel bookings, insurance services and much more.
What do these differences mean for merchants selling services or goods online? Mobile wallets in emerging markets help merchants reach new audiences: previously cash-based consumers who can now make online payments.
Check out the infographic below! And if you’re looking to launch mobile wallets to reach more paying consumers in emerging markets, get in touch.