The Digital Wallet

Today’s smartphones are built to take on any task – Need an answer to that question you’ve been wondering about all day? Google is just one tap away. Want to find out your bank account balance? Well, there’s an app for that. But ten years ago, would you have ever thought that you’d be able to instantly pay for things right from your phone?  With yearly innovation, the smartphone has become more powerful than ever, enabling you to essentially carry a virtual form of your credit card in your pocket. Are digital wallets here to stay? What does this mean for your business? Let’s dive in and see what the rise of one of the latest payment processing trends means for you.


Before we break this down, let’s clarify exactly what a digital wallet is. Digital wallets are an application that enables you to safely store your payment information on your mobile device. This information is encrypted and is accessed through Near-Field Communication (NFC) technology transactions. Essentially, you’re storing your credit card on your phone and a POS terminal is able to read and process the information right from there.

Are Digital Wallets Growing?

The answer to this question is an astounding yes. According to Juniper Research, digital wallet’s spend are expected to exceed $10 trillion by 2025. Juniper Research also notes that in 2020 there were around 2.6 billion digital wallet users and that this number is projected to surpass 4.4 billion by 2025 as well. It’s clear these applications are becoming more commonplace. With Google and Apple Pay becoming increasingly available, it’s easy to see how much this growth is being fueled by smartphones.

When you think about it, the premise of digital wallets are just so ingenious. Why worry about your physical cards when you can just have everything handy from your mobile device. Not only that, but paying with your mobile devices also provides businesses and customers with a more hygienic way to complete transactions. The past few years has provided the perfect conditions for digital wallets to become more popular and there’s still ample runway for this trend to continue growing.  

Are They Safe?

They’re convenient, but are digital wallets safe? This is obviously the biggest concern many consumers have. Almost half of the sample groups from recent studies conducted by Paysafe have feared a switch to frictionless payments. The belief in fraud and information exposure is prominent. With that being said, digital wallets are potentially even more secure than a regular wallet. All the information stored on your device is heavily encrypted. Wallets can only be activated with some sort of authorization, whether that’s a passcode or fingerprint, meaning there’s another level of protection keeping your private information secure. In the event your phone gets stolen or goes missing, the encryption from these digital wallets prevents any data hacking and nothing can be accessed without the entry of a code.

So what does this mean for you?

From a payments standpoint, you always want to ensure you’re providing customers with convenience. At the end of the day, the easier it is for customers to pay, the easier it is to actually complete the transaction. Fortunately, a lot of equipment is now pre-programmed to accept digital cards. Not only that, but e-commerce solutions are now able to process Apple and Google Pay transactions along with other digital wallets. At JAZ, all of our equipment is designed to facilitate transactions as conveniently as possible. Our solutions are programmed to accept all credit cards and payment methods. For more information, check out our equipment selection today and start making it easier for your customers to pay!

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