Find out what are the trends for mobile payments, the types of wallets and how to transform your business with this type of solution. Learn more

Mobile payment systems: the era of a cashless future

In this increasingly digital world, it is not surprising that money follows the same path as well. Recent trends show that digital money stored in mobile wallets will soon replace physical cash and even credit cards. Some countries are even actively trying to eliminate cash in circulation

This topic makes sense. We can buy most of the products and services online these days through our laptops and / or mobile devices. It is easy to link this process to our bank accounts and online payment processors such as PayPal, Mercado Pago and any other means of digital wallet (see solutions)

For some people, their phones are already their wallets, especially among Millennials and Gen Z. According to a study on mobile wallet use, the compound annual growth rate for mobile wallets is 80%, between 2015 and 2020. This adoption rate makes sense; We already use our phones for a million things, so why not use them as a payment method too?

How do mobile wallets work?

Mobile wallets also sometimes called electronic wallets / e-wallets, virtual wallets, digital wallets and similar terms are mobile applications that allow financial transactions. They help customers like you and me send payments for things we want to buy with just a few touches. Mobile wallets have some obvious advantages over physical cash. Digital money is safer to carry, especially if you need to make larger payments. They also record transactions, very useful for those of you who tend to wonder “where did my money go ?!” every month! on the phone.

During checkout, all we have to do is follow the payment instructions – enter or scan a code or address, usually, and the amount will be deducted from your mobile wallet account to the merchant’s wallet account. Currently, there are countless mobile wallet options available in the market, as many smaller but revolutionary fintech companies have also jumped on this profitable train.

Currently, there are countless mobile wallet options available in the market, as many smaller but revolutionary fintech companies have also jumped on this profitable train. This leads to many innovations, with each one competing for your patronage.

Even we are transforming entire municipalities with our mobile wallet solutions.

Examples of Mobile Wallets

With so many mobile wallet options on the market, choosing one is a matter of individual preference and / or finding the best option at the connectivity and open banking level. While some users may stick with their bank’s app, many will try other mobile wallets that offer other kinds of high-tech features that their banks can’t match (technologically speaking).

Here are some examples of mobile wallets currently available. They are compatible with most mobile devices: Electronic payment services Electronic payment services, which generally refer to services provided by e-commerce payment systems, help us make online purchases electronically. Electronic payment services, which generally refer to services provided by e-commerce systems e-commerce payment, help us make online purchases electronically.

Mobile apps created by banks are also included in this category, however tech giants tend to develop the most popular mobile wallets with electronic payment services. Google Wallet, Apple Pay, Samsung Pay, PayPal, Mercado Pago, and other big names are familiar names to us and offer comfort in their solid reputation. Our platform would also allow you to turn your business into such a solution

Loyalty / Loyalty Programs and Coupon-Based Wallets

As Millennials are also known to be a thrifty generation, coupon- and loyalty-based mobile wallets like Gyft, Key Ring, and LevelUp make the list as well.

They help you link and host all your loyalty card accounts under one roof and still be able to use them to collect reward points or bonuses. You just don’t have to carry around a dozen cards when you go shopping.

The Starbucks mobile wallet is a favorite among many of its enthusiasts and offers app-only promotions.

Even in Argentina we have not been able to break the cultural barrier of the commercial managers of the retailers. Users are more than ready. Our platform would also allow you to turn your business into such a solution.

Point-to-point payment wallets

Mobile wallets like SquareCash, Venmo and Circle are marketed as peer payments between friends and family

They are designed to eliminate the hassle of asking people to owe you money or to pay you back. Let’s say you and your friends go out for your weekly brunch, and you paid for the group. You can make a payment request through these apps and your friends can transfer the amount owed directly to your account. Mercado Pago, all payments are a very green example of this. Our platform would also allow you to turn your business into such a solution.

Cryptocurrency wallets

There are many bitcoin wallet options for both beginners and advanced users. There are also specific wallets for storing single or multiple altcoins on your phone, but to date, most of these wallets are too new for us to recommend them. After all, bitcoin, the most mature cryptocurrency of all, hasn’t even been around in a decade.

Bitcoin wallets work like normal wallets, except instead of USD, you instead send the equivalent bitcoin value at checkout. The merchant will provide a bitcoin address (alphanumeric code or QR code) that you can enter as the destination address. The value of bitcoin changes often, so you may want to sync your purchases.

These cryptocurrencies fail to become legal and make their application very difficult in a market under the law.

Hybrid wallets

Wirex is an example of a fintech service that supports both digital currencies and traditional cash currencies on the same platform. It is like a combination of a bank account (which can also issue Visa and Mastercard cards like normal banks) with bitcoin wallets.

Our account can be financed with both cash and digital currencies, making it an interesting product for people who want to use both on one platform. Having the freedom to choose between paying in dollars or bitcoins can be appealing to some people, as each has its own benefits that you can take advantage of. Our platform would also allow you to turn your business into such a solution.

Remittance portfolios

International remittances are a big market. Wallets like Remitly and Xoom are marketed with this in mind. It is similar to peer payment wallets, but with an additional focus on helping the recipient (who tends to stay in developing countries) to collect the money.

They are useful money-saving tools for people who send money to countries where much of the population does not have banks. As you can imagine, our platform would also allow you to turn your business into such a solution.

Wallets by courier services

WeChat, Telegram and Facebook Messenger can be used to receive money from friends / family and pay for products and services.

Messenging wallets for applications are very new, so new, that they are still figuring out how to beat the competition. For example, WeChat can only be used in some stores in China, and Facebook Messenger has just integrated Paypal payments.

It’s too early to say who will dominate the messaging app wallet market, should mainstream adoption come along. Yes yes yes … our platform would also allow you to turn your business into a solution of this type.

Conclusion

• Saying that there are many mobile wallets offered on the market is an understatement. In fact, some online media have used the term “mobile wallet war” to highlight the current struggle between financial service providers as each tries to capture most of the market.
• Only time and the continued incorporation of the mobile wallet will indicate which of the companies mentioned above, or another company in total, will be the winner in this race.

Editorial: Diego San Esteban