Electronic wallet, the evolution of gift cards, offers a possibility to transfer money to other accounts whether banking or non-banking, promising to eliminate the need for an old fashion wallet with cash and cards. In general, mobile payment solutions can take advantage of radiofrequency, wireless & Bluetooth technology to interact with websites and other apps, as well as point-of-sale devices.
E-wallet is struggling in a leadership battle of an incipient market divided by other three strong competitors: Blockchain, Digital, and Mobile wallets making it difficult for users to choose from. While B-wallets grab currency fan’s attention as they can gather and exchange crypto coins using blockchain as a security device. D-wallets, in its turn, hold debit and credit card codes allowing radiofrequency bank account identification with a fancy bracelet, or a watch instead of the old card.
On the other hand, M-wallets promise to store multiple card numbers in a mobile encrypted environment giving a secure & unique code to each transaction, meaning that actual numbers are never stored or shown. According to WEF “during the coronavirus crisis, digital payments have been keeping economies running and helping people reduce contact with viruses.” In 2019 China and India were the world-leading users on the Internet and smartphones.
China had (2019, in millions):
- 854 Internet users
- 851 Smartphone users
India had (2019, in millions):
- 560 Internet users
- 346 Smartphone users
The Chinese government has supported a technological revolution and given a go-ahead for the implementation of new forms of money transfer since 1993. The most remarkable events of this evolution of non-bank digital transactions in China according to WEF:
- Chinese’s foundation for online payments started in 1993
- In 2003 when SARS spread only 5.2% of Chinese had access to the internet
- China processed USD 35 trillion non-bank online payment in 2019
In 2016, the Indian government imposed a law to boost electronic payment taking off 86% of its currency in circulation. This government policy was called demonetization and forced it’s citizens to use online payments. India also chose an open-platform that would drive fintech to embrace digital payments. This Unified Payments Interface (UPI) uses multiple banking accounts to stimulate interbank competition.
In December of 2019 1.3 billion transactions were made by India’s UPI, approximately 10 times more transactions than the two years before. According to WEF “as the global economy rapidly digitalizes, an estimated 70% of new value created over the next decade will be based on digitally enabled platform business models.” “Digitization has the potential to generate, financially, about USD 100 trillion over the next decade for industry and society generally.