Mobile wallets have gained tremendous popularity over the years due to their simplicity of use. These mobile applications grant people access to their banks or pre-paid wallet and allow users from having to carry their wallets. They can even be used to access quick loans after a credit check UK.
Mobile wallets are easy to use applications for budgeting, planning, expense tracking, as well as paying and receiving money. In the UK, they have gained massive popularity amongst the 16-34 age range.
Although the business model of most of these applications involves charging a convenience fee from both, the user as well as the vendor, the cost is a relatively small price to pay for the services offered.
Mobile Wallet Statistics In The UK
In the UK, the penetration of smartphones was 85.6% which is expected to grow to 88.1% by the year 2024. The population is heavily reliant on their phones for various activities such as instant messaging, interacting on social media, watching movies, and reading the news. However, slowly but steadily, the reliance of citizens on mobile wallets has increased.
A report suggests that in 2019, over 19.1% of the total smartphone users utilized virtual wallets while making transactions. However, these numbers were much higher for Generation Z. Almost 29% of the Gen-Z and 28% of Millennial population were reported to rely on e-Wallets for making any online or offline purchases.
Another unsurprising trend is the high density of users in metropolitan cities of the country, such as London. The city accounts for 7% of all transactions under £30. These figures are at least 2% higher than any other region in the country.
Having glanced at the growing popularity of these wallets, let us now deep dive and understand the reason for their widespread success. Below are 5 benefits that justify the huge demand for mobile wallets.
5Ways Mobile Wallets Can Be Your Friend
Ease Of Use
Among the main reasons behind the popularity of digital wallets is their easy to use interface. For users, it is a simple mobile application that can easily be installed in devices free of charge. Apart from that, these applications allow the users the freedom to pay any amount of money from their linked bank account to vendors.
Mobile wallets are redefining convenience by liberating the users from the hassle of carrying cash or cards everywhere. Not only do these e-Wallets have perks for the users but also the vendors. Every day, more and more vendors are associating with such platforms to grow their business.
Furthermore, these applications have made inconvenient tasks of splitting bills extremely easy and centralized. No more calculating the share of each person and counting pennies to give back. With e-Wallets, you can now send money to anyone around the globe with just a tap!
Mobile application stores have stringent regulations before they permit the launch of any application on their platform. The finance-related apps have to face more rigid compliance of security compared to any other app. On top of that, the claims should also be compliant with the government regulations before going public.
There are various technologies that have equipped these applications in enhancing their security features. Some of these robust technologies are point-to-point encryption, tokenization, passwords, biometrics, out-of-band authentication, one-time password (OTP) via message on registered numbers as well as security questions. Most of these applications are based on any one of the above-mentioned technology.
Credit card frauds are incredibly prevalent in the UK, and although the banks are equipped to support the users and resolve the cases, the hassle is incomprehensible. However, as these applications have to go through various stringent security regulations, they are more secure than debit or credit cards.
To be fair, users are unfamiliar with these technologies as mobile wallets are reasonably new. Therefore, a concern for security remains the primary roadblock in the widespread adoption of such apps. However, developers utilize various marketing channels, such as digital media and customer reviews, to build trust in their product.
Offers And Rewards
Offers and rewards have been an age-old tactic to gain the attention of early adopters. Combine these with robust technology backed application, and the result is an increasing level of popularity amongst the Gen-Z and millennial population.
Some mobile wallet companies often collaborate with various service providers, such as ticketing platforms to offer discounts. Many popular wallets offer hefty cash backs to the users and also reward users for referrals.
Your mobile wallet is as reliable as your best friend. You can trust it with your money. The reliability is enhanced by multiple features such as a backup facility, automated data analytics, as well as financial planning.
The backup facility allows users to restore their wallet data. It is usually automatically embedded within wallet apps for user data safety. Most apps auto-sync the user data to cloud storage provided by the user.
Through automated data analytics, these apps allow the user to identify their spending pattern. They could utilize this feature to reduce their expenses and enhance investments.
Finally, the planning option also allows the users to track their expenses from the past and plan their upcoming monthly payments.
Easy Access To Loans
Mobile wallets allow real-time banking to its users. A feature of these virtual wallets that most users are unaware of is loan origination. This enables users to request short-term loans through their smartphones.
These loans could even be a payday loan for bad credit. Such apps make the borrowing process mobile-friendly, fast, and automated. However, just like a regular loan process, these applications also run credit checks.
All these policies have led to an increased demand for mobile wallets in the UK. Their convenience, speed, and robust security measures may have given you enough of a reason to install a digital wallet if you haven’t already.
The future is digital, and e-Wallets are a necessity for a thriving economy. As such, it’s important for people to educate themselves and let go of any inhibitions regarding mobile wallets.