The evolution of digital and mobile wallets (2024)

FAQs

What is the history of digital wallet? ›

When did digital wallets start? The history of digital wallets is older than you think. Coca-Cola deployed arguably the first solution to appear close to a digital wallet in 1997. The soft drinks company installed two vending machines in Helsinki, Finland, which accepted payment by text message.

Though digital wallets and mobile wallets are very similar, they aren't the same. Digital wallets are typically meant for online transactions, whereas mobile wallets are tied to a smartphone or wearable device. Both connect to bank accounts and credit cards for purchasing on the go.

Digital wallets have grown in popularity as consumers have become accustomed to the convenience and flexibility of contactless payments. Forbes recently reported that 53% of consumers now use digital wallets more often than traditional payment methods.

Digital wallets are rapidly becoming an essential component of the global payments ecosystem, driven by technological advancements and changing consumer behaviors. As they continue to evolve, digital wallets will likely integrate more seamlessly with emerging technologies and expand their reach into new markets.

Wallets were developed after the introduction of paper currency to the West in the 1600s. (The first paper currency was introduced in the New World by the Massachusetts Bay Colony in 1690.) Prior to the introduction of paper currency, coin purses (usually simple drawstring leather pouches) were used for storing coins.

Digital Wallet Corporation established in November 2014 in Tokyo, Japan. It was founded by a group of designers from Sony Corporation and professionals who developed and managed global cloud services.

When using a digital wallet for payments, transaction data may be tracked, leading to privacy concerns about the security of personal information stored digitally. The idea that third parties could track and analyze your financial behavior is a significant privacy concern for many users.

79% of Gen Z consumers are avid users of digital wallets. Digital Wallets for Millennials: Millennials are also major adopters of digital wallets, with 67% actively using them.

What problem does digital wallet solve? ›

Digital wallets allow you to pay when you're shopping using your device so that you don't need to carry your cards around. You enter and store your credit card, debit card, or bank account information and can then use your device to pay for purchases. Digital wallets can also store: Gift cards.

Generation Z consumers in particular are making the most use of these wallets. These consumers store payment information and IDs or access information in the wallets. In fact, 10% of Gen Z say they rarely or never carry a physical wallet anymore.

A digital wallet makes money from transaction fees: deposit, withdrawal, or transfer fees. For example, for each recharge made through the digital wallet, the company receives a commission of about 2 to 3%.

Google Wallet (2011) launches

The first app was released in the US only on September 19, 2011. Initially, the app only supported Mastercard cards issued by Citibank. On May 15, 2013, Google announced the integration of Google Wallet and Gmail, allowing users to send money through Gmail attachments.

You use your device's camera and the wallet's scanning system to initiate payment. Near field communication (NFC): NFC is a technology that allows two smart devices to connect and transfer information using electromagnetic signals.

The History

They appear in pretty much unchanged form throughout Europe, including Scandinavia, from at least the 13th century, in illuminations of monks, pilgrims, labourers and washerwomen, right on up to 20th-century photos of travelling salesmen.

Origins of digital currencies date back to the 1990s Dot-com bubble. Another known digital currency service was Liberty Reserve, founded in 2006; it lets users convert dollars or euros to Liberty Reserve Dollars or Euros, and exchange them freely with one another at a 1% fee.