Just a few decades ago, a phone was a just device for making calls and messages. However, it is no longer a secret that the world has rapidly been changing, therefore, humanity gets more and more features and options, including managing the funds on gadgets. GBC Time has overviewed the most recent research on the top-used e-wallets in 2023 and perspectives of the neo banking worldwide.
Nowadays, the consumers’ comfort is a top priority for any business. And as smartphones have almost become an actual part of people’s hands, the main focus mostly is the top-quality applications, phone-friendly websites, and special features oriented toward the use via smartphones.
The industry of finances was probably one of the first sectors to become transformed into digital. However, as time flies, more companies starting to face issues while supporting embedded finance. According to Forbes, these days more and more companies are suffering because of the inability of providing the A-plus user experience. But still, despite all the challenges, the industry of finances is growing.
The potential of banking as a service
The Verified Market Research portal posted statistical data on the Banking-as-a-Service (BaaS) market. As a report shows, in 2020, the BaaS market was valued at $356.26 billion. But still, the sector is expected to grow even further by reaching $2.3 trillion by 2028. Considering the CAGR, from 2021 to 2028, the percentage growth will be over 26.33%.
Moreover, Gartner Research experts are also sure of a rapid increase of new products launched for banking companies worldwide. Talking more specifically, in 2023, over 62% of the banks around the globe are considering launching their unique products and services by partnering with fintech operators. Moreover, 42% of the banks are also open to partnerships with non-banking brands for launching more new services for their customers.
Recently, data.ai researched the mobile finance market to see the perspectives and further directions of the banking sector on the phone. The State of Mobile 2023 report was introduced on the online data.ai webinar. GBC Time overviewed some of the interesting details and facts in the article.
Bank on mobile: consumers’ choice
Since COVID-19 hit the world and global business was placed in the condition of forced reformation and changes, users got used to mobile banking. Moreover, in 2022, digital wallets and payments made the highest jump, which led to even more rapid development of the banking industry towards mobile gadgets.
According to data.ai researchers, one of the key drivers for finance technology was high inflation and economic problems around the globe. Consumers were glad for such an opportunity as fast loaning. Therefore, Personal Loans apps seemed to reach the biggest growth share in the industry. The highest number of downloads was identified in Asia, Africa, and North America.
Before 2022, cryptocurrency seemed to be another unstoppable industry, which is impossible to fall. However, the experts were wrong and could not resist the decrease. In the mobile market, the crypto exchange apps also fall leading to the further failure of such platforms as FTX.
Considering the main failures of 2022, it is also important to see the achievements. Here are the top banking apps downloaded in 2022.
Top finance apps downloaded in 2022
- PhonePe;
- Paytm;
- Google Pay;
- PayPal;
- Nubank.
UK vs US Neobanks
The UK banking system has already stepped on the path of reformation. It seems like traditional banks are still the top choice among consumers. In 2023, however, their place may be taken by neobanks.
In the previous year, neo-banks happened to engage more consumers, which led to a closer gap between traditional and digitalized banks. In 2022, the average time spent per user in the UK neobanks trailed traditional banks by only 4 minutes.
As an outcome, the traditional banking system in the UK is currently searching for additional services and significant improvements in its apps. Consumers have made their choice towards comfort and money on the phone.
Considering the US neo-banking development, some achievements should be highlighted. The average number of active users per month reached 2.2 million in 2022. Just in 2020, there were only 1.4 million users, which demonstrates how fast customers got interested in modern systems and replaced traditional ones. However, the US traditional banks still can take the leadership, according to a higher number of MAU of more than 10x, compared to neobanks.
What about banking apps? Mobile activity in the US banking apps is also at the top, analyzing the number of active consumers and the time spent.
Digital wallets are one of the top categories on the AppStore and Google Market. It seems like users are getting used to always accessible funds through a mobile device. So here are the top 5 digital wallets used in 2023.
Top 5 e-wallets in 2023
1. Google Pay
https://pay.google.com/gp/w/u/0/home/signup?sctid=4543520117836059
My Digital Wallet launched by Google is considered to be the top payment app thanks to its multifunctionality and reliable security system. It allows users to save information on credit and debit cards and all the data of transactions.
While the main problem with digital wallets is the high risk of fraud, Google Pay provides all the possible features to guarantee the best protection. The software based on NFC technology allows for keeping the users’ information safe and still making transactions fast.
2. Apple Pay
https://www.apple.com/apple-pay
Apple is an undoubted leader in the technology industry, but it seems like the company considers the digital finance market as another sector to achieve even more goals. Apple Pay provides the highest level of confidentiality and easy management of the funds.
Of course, Apple Pay is the best choice while purchasing on the company’s networks like Apple TV, Apple News, etc. iPhone users are definitely the main audience for this system, but still, this wallet is universal.
3. PayPal
https://www.paypal.com/be/home
PayPal has already become a leading brand in the digital finance market by providing top-quality service to consumers worldwide. The online wallet payment system is popular thanks to a few features including:
- Buy now, pay later (BNPL);
- Encrypted banks and credit card information;
- Lack of costs.
Moreover, PayPal is on the list of the most popular My Digital wallets. Consumers worldwide have access to use PayPal through iOS and Android device, which make the system flexible and universal.
4. Venmo
The Venmo wallet provides peer-to-peer payment options in addition to attaching debit and credit cards. This e-wallet is another example of a flexible app, which is available on iOS and Android software.
Moreover, another special feature of Venmo is transactions via Twitter or Facebook messages. The banking transactions are fast and simple. The users do not face any fees for signing up, but another 3% can be charged for all credit card transactions.
5. Cash App
https://cash.app/help/gb/en-gb/3124-cash-refer-friends
The Cash App wallet is the best choice for beginning investors thanks to its low-price shares. Moreover, this e-wallet offers plenty of features to make crypto conversion inexpensive.
The level-1 PCI-DSS certification is another proof of the reliable security system and protection for the users. The app also provides fingerprint protection to guarantee full confidentiality.
Among the top features of Cash App are activity tracking, authentication, and P2P payments.
Summing-up
The traditional banking system is increasingly fading into the background, giving way to faster and more comfortable neo-banking. After the world almost drowned in the post-COVID-19 crisis, users began to rely only on themselves and their methods of hedging. Mobile banking is one way to constantly monitor your savings and quickly track activity.
Will traditional banks go away forever? Unknown. The fact that neobanks are with us forever is a fact.
