Empowering financial inclusion and cross-border payments with digital wallets
The use of digital wallets has seen a rapid increase worldwide, enabling users to manage funds, make payments, and track expenses through their mobile devices. These wallets are designed to prioritize mobile usage and offer convenience by combining various services into a single application. Some of the services provided include person-to-person (P2P) payments, card provisioning, merchant payments, food delivery, and other financial services. In certain regions, digital wallets have become the most accessible financial tool for customers.
One notable advantage of digital wallets is that they do not always require a traditional bank account, making them popular among unbanked and underbanked populations. A report by Visa titled “Digital Wallets: Accelerating financial inclusion and economic growth” highlights this trend, estimating that over 60 percent of the global population will be using digital wallets by 2026.
In addition to simplifying cross-border payments, digital wallets have played a pivotal role in providing efficient and cost-effective solutions. Visa Direct, for example, leverages a vast network to facilitate cross-border transactions, reducing fees and improving transparency. These payments have become vital for migrants and immigrants seeking access to financial services.
Digital wallets offer numerous advantages, including convenience, financial inclusion, empowerment for unbanked individuals, multiple services within one application, and market potential for growth. To further drive innovation and market expansion, Visa has made strategic investments in companies like Thunes and TerraPay, aiming to enhance the overall transaction experience.
Visa’s collaboration with Paysend aims to revolutionize person-to-person payments, enabling real-time transfers to eligible Visa cards and accounts across numerous countries. Businesses are increasingly adopting digital wallets to streamline payments and enhance customer convenience. The global volume of digital wallets is projected to reach trillion annually by 2028, emphasizing the need for secure and efficient payment solutions.
Security remains a top priority for Visa, with a focus on tokenized payment credentials, device-based commerce, and the security benefits of tokenization. By prioritizing these strategies and promoting secure digital wallets, Visa aims to address security concerns and provide a seamless payment experience for users.
