What Does 2024 Have in Store for Digital Wallets?

Payments are arguably the face of fintech. When you think about financial technology, it is easy to think about solutions which are making payments faster, easier and more accessible.

Having already looked into digital wallets extensively throughout our paytech theme this month, we now turn our attention to the future. What does 2024 have in store for digital wallets? To find out the answer, we reach out, once again, to the industry experts.

Digital wallet growth

Kicking us off, Salvador Tello, head of global enterprise sales at ClearSale, an e-commerce fraud protection solution provider, explains: “In 2024, digital wallets are set to become essential tools for everyday commerce.

“This transformation aligns with consumers’ growing preference for digital wallet transactions, with forecasts indicating that nearly two-thirds of US smartphone users will use mobile wallet apps monthly, up from half in 2021. The evolution of digital wallets aligns with broader financial inclusion initiatives, as these platforms offer accessible and efficient financial services, contributing to the empowerment of diverse segments of the population.”

Kraig Kleeman, founder and CEO of talent pool The New Workforce, also believes digital wallets will undoubtedly grow in the coming year: “Heading into 2024, digital wallets will only become more attractive and valuable.

“Thanks to AI, we will see better security and more innovative features, and more online and on-the-street shops are starting to accept them. And with all the changes in regulations, digital wallets might be the thing that brings traditional banking and the new world of fintech together.”

‘Things are warming up, on low flame’

Ofer Friedman, chief business development officer at identity verification firm AU10TIX, comments: “2024 is supposed to bring digital wallets to everyday life more than ever before.

“Countries embracing government-controlled wallets will most likely do it faster, and build up consumer confidence. But governments are first and foremost about government or government-supported services (such as education).

“Yet it is expected that even in Europe, with its eWallet, many devices will carry more than one wallet.

“The second one is likely to be a commercial wallet, like Apple Wallet, Google Wallet, and the like. In other words, things are warming up, on low flame. So far.”

Bitcoin to accelerate digital wallet growth?

Kadan Stadelmann, CTO of Komodo, the end-to-end blockchain infrastructure solution provider, says: “I think we’ll see more nation-states start to support Bitcoin and other cryptocurrencies. This will result in a global boom for digital wallets.

“For example, when Argentina’s President Javier Milei assumed office in December 2023, one of his first actions was to pass a decree that allowed Bitcoin to be used as a valid currency in official contracts. Also, due to the accelerated inflation of the Argentine peso, millions of citizens have begun embracing cryptocurrencies.

“If Bitcoin continues to hold its current value or gain value in 2024, this would further accelerate the global adoption of digital wallets in Argentina. Other nations are likely to follow a similar path.”

2024: the year of digital wallet adoption

Finally, Jean Boling, director of business development at payment solutions provider Clearent Xplor Technologies, cements the suggestion that this year could prove very positive for digital wallets: “2024 will bring even higher digital wallet adoption for consumers and businesses.

“What we’ll also see is more and more businesses investing in updating their payment technology to make it easier for customers to pay with digital wallets.

“Greater consumer demand for convenience is driving many different verticals and markets to invest in their payment technology and expand the range of payment options they can offer. Regardless of where they are shopping, people want their payments to be quick, easy, and convenient – so we will see businesses of all sizes adapting to cater to this demand in 2024.”