What is mobile wallet and why should I use It?

Sending and receiving money abroad has never been easier with the rise of mobile wallets. With digital wallets, you can now manage your money and make purchases directly with your smartphone. Worldwide, 25.7% of people use mobile money, and this percentage is projected to increase to 33.4% by 2024.

You do not want to miss out on this convenient and cost-effective payment solution. Continue reading to learn more about mobile wallets and how to take advantage of them.

What is a mobile wallet?

A mobile money wallet is technology which allows users to make monetary transactions and access other financial services through a mobile device, such as a smartphone, tablet, or smartwatch. Currently, more than 1.48 billion people worldwide use mobile money and the number is steadily increasing.

There are several reasons why so many consumers are turning to mobile payment solutions.

Benefits of mobile wallets

1. Convenience: With digital wallets, everything you need to make payments is on your phone or other mobile device. You no longer have to carry around a physical card or physical wallet and could even store your loyalty cards and even coupons digitally. Moreover, mobile money services are available 24/7 online, eliminating the need to visit physical bank locations and increasing inclusion in the financial system.

2. Speed: Digital wallets eliminate the time you spend searching your wallet for a physical credit or debit card. You just simply need to place your mobile device near the payment terminal to make a transaction. With mobile money, you may also be able to send money instantly, even internationally, through a mobile app.

3. Cost-effectiveness: Compared to traditional bank accounts which may charge exorbitant fees for wiring money abroad, mobile wallet apps generally do not charge high fees or exchange rates for money transfers.

4. Security: For mobile wallets, your payment and card information is usually protected by your fingerprint, PIN, or facial ID along with a multi-step authentication process. When making a purchase directly with a payment terminal, a unique encrypted number is transmitted to confirm the transaction instead of your actual credit card number.

5. Contactless Payment: Avoiding contact with possibly contaminated surfaces is a concern for many consumers in our post pandemic world. With a few taps on your mobile phone, you are able to purchase products and services via mobile money without having to touch public surfaces.

How does a mobile wallet work?

While the usage process varies slightly among different mobile wallet providers, generally you first download the mobile app of your preferred provider and set up an account. Some mobile money programs will not require you to have a bank account and will simply store your funds in a digital account associated with your phone number. Other providers will have you load your existing credit or debit card information into the app.

When your mobile wallet account is set up, you will be able to electronically access your funds and other financial services through the app.

Popular mobile wallets

Mobile wallets, which started in the 2000s, are relatively new technology. However, their user base has rapidly expanded over the last couple of years and is projected to continue to increase as time progresses.

These are the top ten most widely used digital wallet apps around the world:

1. Alipay (650 million users)

2. WeChat Pay (550 million users)

3. Apple Pay (507 million users)

4. Google Pay (421 million)

5. PayPal (377 million)

6. Paytm (333 million)

7. PhonePe (300 million)

8. Samsung Pay (140 million)

9. Venmo (52 million)

10. Cash App (36 million)

Together, these ten apps have a total of 3.37 billion users, a number which is equivalent to around 43% of the entire world population (7.888 billion). Some other popular mobile wallets include MTN Mobile Money, DaviPlata, and GCash.

Mobile wallets are here!

Xe now offers money transfer to mobile wallet providers in over 35+ countries including Ghana, Kenya, and the Philippines. It's a fast, convenient and secure way to send money to your loved ones. Money arrives instantly, starting at $0.

Want to send money abroad?

Xe is the fast and trusted way to send money abroad. With 30 years of experience, we have priceless expertise in international money transfers which we use to help more than a million customers worldwide.

• Hundreds of millions of people check our rates and send money with us every day

• See our low fees and exchange rates in real-time

• Transparent delivery times so you can move money fast

• Sign up for a free personal or business account in minutes

Download our mobile app to check live rates, send money securely, set rate alerts, receive notifications and more.

The content within this blog post is not intended for use as financial advice. This content is for informational purposes only.