As we approach the year 2023, the landscape of digital payments is evolving at a breakneck pace, transforming the way we conduct transactions and manage our finances. With the rapid growth of mobile devices, the increasing demand for convenient payment methods, and the relentless pursuit of innovation in the financial industry, it's no wonder that digital wallets are becoming the go-to solution for consumers and businesses.
The market for mobile wallets is expected to grow from $220 billion in 2021 to $970 billion in 2030. This growth will be supported by Near Field Communication (NFC), banks, fintech firms, digital-only solutions, and other cutting-edge payment technologies. As more consumers embrace digital wallets for online transactions, the importance of these payment methods in the ecommerce industry will continue to grow.
In this comprehensive blog, we will explore the six game-changing trends shaping the future of digital wallets, providing you with the latest insights and predictions that will keep you ahead of the curve. So, whether you're a tech enthusiast, a business owner, or simply someone curious about the future of payments, this blog is your ultimate guide to understanding the exciting world of white label digital wallet market in 2023.
White Label Digital Wallet: How It Can Reshape E-commerce?
In 2023, white label digital wallets are expected to gain significant traction in the financial technology landscape. The recent statistics from P&S Intelligence predict the global mobile wallet market to reach $10,097 billion by 2030. These numbers are driven by growing digitization, shifting customer demands, and shifting toward digital money.
These customizable and brandable solutions offer businesses and financial institutions the opportunity to launch their own digital wallets without investing extensive resources in developing the technology from scratch. Let's explore the world of white label digital wallets and understand why they are set to make a mark in 2023.
White label digital wallets allow businesses to create a branded and personalized customer experience. The wallets can be customized with company logos, colors, and user interfaces that align with the brand identity. This level of customization helps businesses maintain a consistent brand presence and reinforce their image while providing seamless financial services.
One of the primary advantages of white label digital wallets is the speed at which they can be deployed. Businesses can leverage pre-existing infrastructure and technology, reducing development time and costs. This allows companies to swiftly enter the digital wallet market and take advantage of the growing demand for convenient and secure financial services.
Enhanced customer engagement
White label digital wallets enable businesses to engage with their customers directly through a mobile app. With features like push notifications, personalized offers, and rewards programs, businesses can foster customer loyalty and strengthen their relationships. By providing a seamless and branded experience, these wallets create opportunities for businesses to engage with their customers in real time, enhancing overall customer satisfaction.
Integration with existing systems
White label digital wallets can be seamlessly integrated with existing systems and platforms. This integration enables businesses to consolidate their financial operations, combining payment processing, loyalty programs, and customer data into a single interface. By streamlining these processes, businesses can improve operational efficiency, reduce costs, and gain valuable insights into customer behavior and preferences.
Expanded payment options
White label digital wallets can support various payment options, including credit and debit cards, bank transfers, and cryptocurrency payments. This flexibility allows businesses to cater to the diverse payment preferences of their customers. Additionally, integration with mobile payment solutions like Apple Pay and Google Pay further expands the payment possibilities, making transactions more convenient for users.
Scalability and future-proofing
White label digital wallets provide businesses a scalable solution to grow alongside their customer base and evolving market needs. As technology advances and new features and functionalities become available, white label solutions can be easily upgraded and adapted to incorporate these innovations. This future-proofing ensures that businesses can stay ahead of the curve and continue to provide cutting-edge financial services to their customers.
If you’re up for building a white-label digital wallet solution for your business, keep in mind the next six fintech e wallet trends for 2023.
In an era where security breaches and identity theft are major concerns, digital wallets take security to the next level with biometric authentication. While fingerprint scanning was an initial step in biometric verification, expect more wallets to incorporate facial recognition and even iris scanning for enhanced security. Biometrics provides a robust layer of protection against unauthorized access and offers a seamless and frictionless user experience. Simply put, your face or fingerprint becomes the key to unlocking your digital wallet.
Biometric authentication keeps every online interaction extremely secure, private, and fast. Moreover, according to the latest report from Juniper Research, the mobile payment biometrics market is expected to grow to $1.2 trillion by 2027. This means biometric technology will establish a stable foothold in the FinTech eWallet market.
The most common ways for biometric verifications:
- fingerprint sensors;
- face scans;
- voice pattern scans;
- retina scanners.
With these features, users can enjoy a secure authentication process by verifying their identity before paying. This technology boosts customers’ trust and satisfaction, improves security, and delivers a flawless user experience.
Social commerce is an emerging trend poised to reshape how we shop and interact with brands in 2023. It combines the power of social media platforms with e-commerce, creating a seamless shopping experience within the social media environment. Convincing statistics also confirm the growth of social commerce. According to a survey by Accenture, social commerce is expected to grow three times as fast as traditional eCommerce, resulting in $1.2 trillion in 2025. These figures demonstrate the rising popularity and interest in social commerce among consumers.
The rise of shoppable posts
Social media platforms have become more than just spaces for connecting with friends and sharing updates. They have evolved into powerful marketing and sales channels. In 2023, expect to see an increase in shoppable posts, where brands can tag their products directly in social media posts. Users can click on these tags and make purchases without leaving the platform, making the shopping experience effortless and seamless. Integrating social media and e-commerce blurs the lines between discovery and purchase, driving more business conversions and sales.
Live shopping experiences
Live streaming has become immensely popular across various social media platforms. In 2023, this trend will extend to social commerce with the rise of live shopping experiences. Brands will host live events where they showcase their products in real-time, allowing users to interact, ask questions, and make purchases while watching the stream. These live shopping experiences create a sense of urgency and FOMO (fear of missing out), encouraging users to make quick purchasing decisions. Additionally, brands can offer exclusive discounts or limited-time offers during these events, further incentivizing users to buy.
Social recommendations and user-generated content
Consumers trust the opinions and recommendations of their peers. Social commerce capitalizes on this by incorporating user-generated content and social recommendations into the shopping experience. In 2023, more user-generated content, such as reviews, ratings, and photos, will be integrated into social commerce platforms. Brands will encourage customers to share their experiences with products and tag the brand in their posts. This user-generated content serves as social proof, influencing other users' purchasing decisions and creating a sense of community around the brand.
Social commerce platforms focus on streamlining the checkout process to provide a frictionless shopping experience. In 2023, expect to see improved payment integration within social media platforms, allowing users to securely complete purchases without redirecting to external websites. Integration with popular payment gateways, such as Apple Pay or Google Pay, will make transactions quick and seamless. Additionally, platforms may introduce features like saved payment information and order tracking directly within the social media app, further enhancing the convenience for users.
So, businesses will have a unique opportunity to leverage social commerce in 2023:
- enable in-app purchases;
- incorporate user-generated content;
- collaborate with influencers;
- leverage social media advertising features.
These strategies can effectively boost sales and brand awareness within the digital wallet ecosystem. As such, companies can capitalize on this growing trend and increase their online sales by implementing social commerce and seamlessly integrating white-label digital wallet solutions.
Smart Voice/Speakers Payment
It’s true that a technology-driven world reduces people’s efforts and allows them to be more efficient in their daily lives. With the increasing adoption of smart voice assistants such as Amazon Alexa, Siri, and Google Assistant, consumers can now make payments using voice commands.
The potential for smart payments for voice/speakers is huge. The Statista survey states the global smart speaker market is expected to grow to over 35.5 billion U.S. dollars by 2025. Thus, businesses that adopt this technology will be able to capture the growing market of customers who prefer voice interaction and quick purchases.
From a business perspective, this means that their digital wallets with built-in voice assistants will help them offer users personalized recommendations, exclusive discounts, and loyalty programs for small businesses during checkout. This level of customization fosters a closer connection with customers and increases the likelihood of repeat purchases and brand advocacy.
Digital payment providers use AI and ML algorithms to secure transactions and enhance fraud detection, personalization, and customer support. AI-powered systems analyze vast amounts of data to identify suspicious transactions and mitigate fraud risks.
Also, AI algorithms allow companies to offer personalized product recommendations and customized promotions. With AI-driven customer data, businesses can predict user preferences, provide relevant products or services, and customize payment options.
By 2025, the global revenue of AI in banking and finance will reach 126 billion US dollars. This means businesses should invest in robust AI infrastructure, data analytics tools, and cybersecurity measures to take advantage of AI-driven payments.
Collaboration with FinTech technology providers like ElifTech, experienced in AI integration, can facilitate the eWallet application development process.
Buy-Now-Pay-Later (BNPL) has emerged as a disruptive force in the retail industry, providing consumers with a convenient, flexible, and inclusive payment option. Buy-Now-Pay-Later (BNPL) is a popular payment method that allows consumers to make purchases and split the cost into installment payments over time without the need for traditional credit cards or loans.
Appeal to Millennials and Gen Z
One of the key attractions of BNPL is its convenience and flexibility. If paid on time, consumers can make purchases immediately and spread the cost over several installments, typically without any interest or fees. This flexibility allows individuals to manage their cash flow more effectively, making larger purchases more accessible and affordable.
BNPL has gained significant popularity among millennials and Generation Z consumers, who value financial flexibility and transparency. These tech-savvy generations are drawn to the convenience and affordability of BNPL options, and their increasing spending power makes them an attractive market for retailers. Splitting payments without incurring interest or fees aligns with their desire for budget-friendly shopping experiences.
Accessible to a broader customer base
The global BNPL market will reach over 450 billion USD by 2026. Such popularity of BNPL services can be explained by simplicity and accessibility. BNPL opens doors for consumers who may not have access to traditional credit cards or who prefer to avoid credit card debt. Unlike credit cards that often require a credit check or have strict eligibility criteria, BNPL services are generally more inclusive, allowing a broader range of consumers to enjoy the benefits of installment payments. Users may quickly sign up for BNPL services using white label digital wallets that provide a smooth checkout process.
From a commercial standpoint, adding BNPL to white label mobile wallets creates new opportunities for expanding revenue and customer base. Businesses can increase their customer base, average order value, and conversion rates. In addition, BNPL services often include marketing partnerships and collaborations that help promote the business to a wider audience.
Useful tip: Businesses should carefully consider the costs and potential risks associated with BNPL. So, appropriate risk assessment and management practices must be in place to ensure responsible lending and reduce the risk of default.
Virtual cards within white label digital wallets offer consumers a convenient and secure payment solution. These virtual cards, which are generated and stored digitally within the wallet, provide various benefits and functionalities that enhance the overall user experience. These temporary card numbers linked to the user's account provide an extra layer of security for online transactions by reducing the risk of fraud or unauthorized charges.
Customizable spending limits
Virtual cards provide users with greater control over their spending habits. In white label digital wallets, consumers can set customizable spending limits for each virtual card associated with their account. This feature allows individuals to manage their budgets more effectively, limit their expenses, and prevent overspending. By providing users with the ability to set spending limits, virtual cards promote responsible financial management.
Seamless integration with loyalty programs
Virtual cards within white label digital wallets can be seamlessly integrated with loyalty and rewards programs. Users can link their virtual cards to loyalty accounts and automatically earn rewards, discounts, or cashback on their purchases. This integration simplifies the process of earning and redeeming rewards, eliminating the need for physical loyalty cards and streamlining the overall customer experience.
This technology can benefit online marketplaces, subscription services, and eCommerce platforms. Also, businesses can provide virtual cards on a subscription basis for seamless recurring payments. That suggests virtual cards will become a vital feature of white label digital wallet solutions.
How ElifTech Helps Businesses Embrace the Latest Trends in Digital Wallet App Development
The global FinTech digital wallet sector is taking giant strides toward consumer-facing digitalization. Whether you launch a new business adventure or modernize your legacy software, ElifTech is ready to become your long-term white-label digital wallet development partner.
Who is ElifTech?
We are an IT vendor that helps businesses deliver their best software solutions. Our team has worked with fintech companies, banks, and small- to medium-sized businesses to deliver the best-fit digital wallet solutions. We help clients implement advanced security measures, leverage cutting-edge technology, and streamline their payment processes for greater efficiency and customer satisfaction.
While it may seem difficult to compete with market leaders such as Apple Pay, Google Pay, and Samsung Wallet, the task becomes easier if you go off the beaten path with eWallet development professionals. With our technical know-how in the FinTech industry and deep understanding of emerging technologies (mobile wallet integration, AI-driven payments, and secure tokenization), ElifTech provides businesses with the confidence and support necessary to thrive in the dynamic digital wallet environment.
Our team uses the latest tools, frameworks, and best practices to deliver custom eWallet designs and wide-ranging functionality to meet unique business and technical requirements.
You can rely on us if you need the following:
- Consulting and advisory
- White-label mobile wallet development
- Consumer-centric FinTech web development
- FinTech UI/UX design
- FinTech mobile app development (IOS and Android)
- FinTech software architecture
- Payment integration
- Advanced security measures implementation
- AI & ML implementation
- Blockchain-based solutions development
- DevOps services
So, if you're on your way to stepping forward in the fast-paced FinTech industry, let us know about your project in mind and learn how ElifTech can make your FinTech services successful.