Mobile Contactless Payment Transaction Volumes to Grow by 92% Globally by 2023, Outpacing Card Volume Growth
A new report from Juniper Research has found that transaction volumes for mobile payments will grow from 26 billion in 2021 to 49 billion in 2023; representing a growth of 92%.
Growth in mobile contactless transaction volumes will significantly exceed contactless card volumes by 2023, as mobile contactless transactions grow twice as fast as contactless card transactions. The report identified the enhanced security and increasing cross-channel payment capabilities of mobile contactless payments as key drivers of growth.
The new report, Contactless Payments: Trends, Opportunities and Market Forecasts 2021-2026, recommends that mobile contactless payment wallets fully leverage opportunities for value-added services, such as loyalty schemes and personal financial management, to differentiate their digital wallet services in this competitive market.
For more insights, download the free whitepaper, Cash is No Longer King: How Contactless Payments are Becoming the Norm
Latin America Will Experience the Fastest Growth
The research forecasts that Latin America will experience growth of over 400% in contactless mobile transaction volumes between 2021 and 2023. It predicts that increasing smartphone penetration, alongside improved access to digital financial services will drive demand for digital wallets services in the region over the next two years.
Research author Susannah Hampton explained: “Latin America has seen rapid development in its digital infrastructure in recent years, shown by the increased investment into supporting digital transformation, as well as an increasingly favourable regulatory environment. This will further drive payment digitalisation in the region.”
Payment Security Key for Further Growth
The research found that low trust amongst consumers is a key hurdle digital wallets face. Consequently, it urges wallet vendors to increase support of biometric authentication in their services to allay the fears of those hesitant about adopting the technology. It found that the ability of mobile payments tokenisation to reduce the scope of payment security requirements means that the tokenisation of mobile payments will become ubiquitous. Juniper Research anticipates that by 2023, 99% of all contactless payment transactions by volume will be tokenised.
MasterCard Partners Stables to Launch Stablecoin Wallet
MasterCard has announced a partnership with an Australian stablecoin platform, Stables to launch a stablecoin wallet for customers in the Asia-Pacific (APAC) region.
The payment giant noted that the stablecoin wallet will only support deposits and withdrawals via the Australian Dollar at launch.
Speaking on the development, Stables co-founder and CEO Daniel Li stated that Mastercard’s stablecoin wallet will be available for users in the second quarter of 2023. He added that the stablecoin wallet will later support the United States Dollar, British Pounds, and Euro as well as currencies in Latin America and Africa.
While anticipating the launch, Li disclosed that stablecoin has the potential to improve the financial system. “Stablecoins will play a pivotal role in the new financial system and will be core to bridging the worlds of traditional and decentralized finance,” he said.
Li further added that users will be able to top up their balance using bank transfer, direct debit and other modes of payment.
Meanwhile Mastercard Australia’s head of fintech, Kallan Hogan said that the company is committed to providing innovative payment solutions that will give users the freedom to spend their assets when, how, and where they want.
Investors King understands that a partnership involving a reputable payment company such as MasterCard will be a positive sentiment, especially after the debacle that befell USDC. Recall that USDC fell below the $1 mark after one of its banking partners, Silvergate ran out of liquidity.
No doubt, this collaboration is expected to strengthen stablecoin and by extension, the crypto industry as a whole.
Benefits of Mastercard’s Stablecoin Wallet
The partnership involves the stablecoin-only wallet built by Stables, coming with a payment card supported by Mastercard. The payment card allows users to spend and save the USDC stablecoin by converting the digital currency into fiat and settling in the MasterCard network.
In addition, users can also top up their balance using bank transactions, direct debits, and other methods of payment.
ALAT by Wema Announces Call For Entries For the 2023 Edition of Its Hackathon Program
Nigeria’s digital bank ALAT by Wema has opened application entries for the fourth edition of its hackathon program, with the theme, “Hackaholics 4.0 ‘Re-imagine’.
Announcing the commencement of entries for the program, the bank’s executive director, Digital services, Mr. Tunde Mabawonku said that just as the bank is constantly innovating by refining banking with ALAT, it is also poised to help individuals and organizations to innovate to make the country better.
In his words,
“Just as we redefined experiential banking with ALAT, Hackaholics is at the heart of our innovative project for startups. We are poised to host the largest campus hackathon this year. As we plan the next eight decades of Wema Bank, we need to innovate and help encourage others to innovate. We try to get the best and brightest and give the country ideas on how to transform our organizations to become world-class”.
Also speaking on the commencement of this year’s edition, the bank’s Chief Digital Officer Mr. Olusegun Adeniyi said the bank has successfully disrupted the digital banking ecosystem by producing the first digital bank and creating unique experimental banking with ALAT. He added that the hackathon program has been driven by the mindset of innovation.
This year workaholics 4.0 was launched with a push to bring together 10,000 young innovators from across Nigeria as well as Africa, with a mission to investigate the endless possibilities in emerging technologies while utilizing its neo-bank proposition to significantly expand the student and youth eco-system.
The bank plans to produce 5,000 solutions, create six pitch centers, and have almost one million footfalls during the campaign. For this year, the winner takes home N3,000,000 First runner-up N2,500,000, and Second Runner-up N1,500,000.
To cover more grounds regarding societal problems, this year’s Hackaholics edition is expanding its scope and exploring more verticals, which include Education, Climate, civic tech, Insurance, GovTech, Health, Gender-Based Violence, Fintech, Financial Inclusion, and Entertainment.
Participants can be part of this year’s Hackaholics 4.0 by registering on the website, to Join a diverse group of problem-solvers, developers, designers, and creative thinkers at this year’s edition to make a difference.
Steps to follow
- Click register now on the workaholic’s website
- Input your solution details and information
- Input your team members’ details
- Submit your application and await your email.
Benefits Participants stand to gain
Hackaholics is a great opportunity for participants to learn and experiment. They stand to benefit from the following ;
- Grand to build/ scale solutions
- Support for product and integration
- Visibility for your team/ solution
- Access to community of founders
- Coaching/ Mentorship for founders
- Learn from renowned industry expert
Investors King understands that as a way of honoring its commitment to inclusivity, women-led teams will be given recognition and rewards in this year’s edition.
Opay Reopens Lagos Offices After Election-Related Closure
Digital bank Opay has announced the reopening of its Lagos offices on Monday, March 20th, following a temporary closure due to the ongoing election.
Despite the slight adjustment to its business hours, Opay has been one of the most reliable financial institutions for many Nigerians, providing efficient electronic money transfers and other financial services.
In a statement released by the company, it said, “Our Lagos offices will not be open to customers today; (Friday 17th March) due to the upcoming elections in the state, however, all offices in other cities will be open for business.”
The company also encouraged customers to use its alternative channels, which will be available and accessible to them. This move is in line with Opay’s commitment to ensuring uninterrupted service delivery to its customers.
As the banking sector in Nigeria continues to evolve, digital banks like Opay are taking center stage with their innovative services, which are tailored to the needs of the average Nigerian.
With its reopening, Opay continues to solidify its position as a reliable and efficient financial institution that can be trusted to meet the needs of its customers.
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