The Global e-Wallets Landscape – A Look Ahead for 2023

Electronic wallets have now moved from being a helpful accessory to becoming an essential part of modern life. It seems archaic to think of a time before you could pay for goods and services on an app, or simply swipe your phone across a point of sale in a store. But now that these gateways have reached a high level of safety and usability, do they have anything left to give?

2023 will see some small changes that could have a huge impact. Below, we look ahead at the global e-wallets landscape for 2023. 

PayPal

Any financial article about PayPal's outlook for 2023 will inevitably tell you about how good the future looks for the company. It is the most used digital wallet and will remain so, occupying a 76% share of the retailer's market. Despite having a loss in profit at the end of the year, overall revenue has risen by almost 11% year upon year in other quarters. 

One worry is that a large share of payments on PayPal concentrates on non-essential purchases. It is used when people buy clothing, entertainment goods, and other related products online. In lean economic times, these are the first to be cut from household budgets and the company may suffer as a result. 

Newcomers

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One factor that has not gone unnoticed is PayPal's high fees for certain transactions. A host of new payment gateways are poised to exploit this weakness, offering free transfers and lower costs all around. The success of many will depend on the services they offer and how well they can be integrated. One of the most promising that ticks all these boxes is the MuchBetter Smart Payment app. 

Not only does it have a lot of devices, such as handy key fobs and cards, but it also has easy integration with Google Pay. Transactions can be confirmed by using the phone itself, and it has poised itself to take on the online gaming world by having the lowest gaming transaction fees of any e-wallet. E-wallets, as a way to make digital transactions, are essential for online entertainment communities, gaming or streaming, and will continue to be so. 

The iGaming sector has always been at the forefront of innovation when it comes to payment methods. Security is a hallmark on which online casinos pride themselves. As early adopters of payment methods such as cryptocurrencies – because of their security strengths – they are always willing to use new, robust payment methods. BitStarz Canada highlights its compatibility with MuchBetter alongside wire/bank transfers and major credit cards, reflecting the success of this new payment method as the casino prides itself on making deposits and withdrawals simple for customers.

Changes to e-Wallets

The biggest changes in the US will come from congress and its research into e-wallets. In 2022 hearings were given on consumer protection when it comes to e-wallets. As many of them have limited customer service, it would not be out of the question to see consumer guidelines and regulations created on them. There were also discussions about creating a social e-wallet for Americans that did not have banks, allowing them to make purchases electronically. 

In the UK, then most e-wallets are used by those aged 18 – 34. Thus, you may see many payment providers aim their services at an older generation to capture this untapped market. This could take the form of advertising campaigns or content on how to use and stay safe with wallets. 

The UK government also discussed creating a form of cryptocurrency known as a stablecoin. Despite a downturn in the crypto market, stablecoins are tagged to fiat currency and provide a much better way of regulating the market if offered by a government. If adopted, it could let e-wallet providers access new audiences and markets.