Serving more than just banks: Our e-wallet offering
Mobile wallets are gaining traction and becoming a dominant alternative to cash and credit cards. Recent predictions expect the mobile wallet market to surpass $3 trillion globally by 2022. It’s also interesting to see the demographics that lead usage of this new payment method: according to a research published by Payments Journal, the two segments most likely to use mobile wallets are young consumers (18-34) and high income earners.
Mobile wallets already account for 80% of contactless transit payments in New York and 16% of all purchases at Starbucks stores across the United States. PayPal is the most used wallet in the U.S., followed by Google Wallet and Apple Pay. Interestingly, the U.S. itself is lagging behind the rest of the world in mobile wallet usage: according to Business Insider, less than 10% of Americans used mobile payment apps in 2018 – compared to over 80% of consumers in China. And it’s not just China: Asia-Pacific in general is leading the way in mobile payment adoption. Part of it is due to the large chunk of unbanked populations in this region, and part is attributed to a strategic move by governments to become cashless, get better tracking of money flow and crush black market transactions.
PayKey’s customer portfolio includes mobile wallets that are highly popular in their regions: In India, we serve PhonePe, one of the nation’s largest wallets with over 150M users, that launched our solution last April. In Colombia, we’ve been live since 2017 with Daviplata, the wallet brand of Banco Davivienda. Implementing PayKey’s solution has yielded significant business results for Davivienda, including a $3M increase in the volume of P2P transactions and a 300% increase in daily app downloads during promotion phase of Davivienda’s banking keyboard.
The launch of our solution also helped Davivienda position itself as an innovation leader in the Latin American banking ecosystem. Being the first bank in Colombia to offer such a frictionless banking experience, Davivienda won two prestigious industry awards: in 2018 it won the Celent Model Bank Award. The following year, the bank’s EVP for Retail & Marketing was selected for FinTech Americas top-25 most innovative bankers in Latin America.