With increasing restrictions on public travel and offline retail operations, the growing demand for online shopping amid the COVID-19 pandemic is propelling the global growth of the mobile wallet industry. The growing preference for contactless payment methods over traditional payment systems to curb the spread of the virus is driving the adoption of digital wallet payment systems. It was estimated that credit card giant, Mastercard, saw a 40% increase in contactless payments, including tap-to-pay and mobile payment in the first quarter of 2020, as a large number of shoppers feared germs on cash and credit cards.
According to a recent report by Global Market Insights, the mobile wallet market size is expected to exceed USD 700 billion by 2027.
Growing deployment in the restaurant industry
Mobile wallets are expected to register a strong footprint in restaurants due to ongoing concerns about sanitation as well as minimizing contact between customers and staff. This payment method makes it easy for customers to pay for meals instantly while helping restaurants attract a wider audience and build customer loyalty. For example, Starbucks makes extensive use of mobile payment solutions to enhance its public image and create high industry standards for customer service.
The growing adoption of existing mobile payment methods, including Apple Pay and Google Pay, among others, has reduced the hassle of hotels and restaurants to develop their apps. Growing advancements in mobile application development technologies will also drive the preference for mobile payment solutions.
According to the 2021 State of the Restaurant Industry Report published by the National Restaurant Association, approximately 40% of restaurateurs across six restaurant models (family dining, quick service, casual dining, fast casual dining, fine dining and coffee and snack) mentioned that they have added a contactless or mobile payment option.
Mobile wallet providers offer attractive cashback and rebates to encourage maximum transactions through this digital payment system. They also offer customers the ability to save and store discount coupons and loyalty gift cards for future transactions.
Sometimes these coupons and discounts come with unique codes and QRs that can be used for specific purchases or offers. In the hospitality and restaurant industries, mobile wallets are increasingly being adopted to provide greater convenience and comfort to customers. Nowadays, digital wallet providers also offer customers several points-based Q&A sessions, quizzes, and loyalty programs, which can be used while using mobile wallets.