There are so many streaming services that I am currently subscribed to that I can’t even begin to count them. Part of that is due to my “addiction” to watching movies and series. The other part relates to Apple Pay.
It’s so much easier to just click, authorize, and there you go! I don’t have to fill in all my personal and credit card information in the new system. Just one click and the digital wallet takes care of everything for me.
The same thing happened to Amazon and other e-commerce systems. The process is so simple that it even generates funny stories, such as when kids purchase a hundred candy bars or new video games from their parents’ phones and only learn about it once the product arrives at home.
(Not so funny for the parents, though).
Back in March 2020, a report by US-based fintech FIS released its Worldpay from FIS 2020 Global Payments Report predicted that digital wallets will represent half of the global e-commerce sales by 2023.
In light of the fact that this report was published in March 2020, we can say that this prediction might be enhanced since we’ve experienced a global pandemic, which only accelerated and increased consumers’ online shopping habits.
It’s never been easier to pay
In case you don’t know what digital wallets are, they are systems that store all the information about your credit and debit cards. Most of them can be accessed through apps on your phone, and most e-commerce websites allow you to pay with them already.
As examples of digital wallets we can highlight:
- Apple Pay
- Google Pay
- Bitcoin Wallet
- Samsung Pay
- Visa Checkout
- And many more.
Like I said before, paying with digital wallets can be done with just a few clicks. In order for that to happen, those apps utilize the Near Field Communication (NFC) technology that works as an intermediary between the terminal of the retailer and the smartphone.
But I know that by now you are asking “and what crypto and blockchain have to do with this?”.
Never fear, I’ll elaborate more:
As we already know, blockchain is the technology where transactions can be made in a seamless, cryptography, and secure way and cryptocurrencies are one of the assets that can be traded with that kind of technology.
We also know that crypto wallets do not “hold” our crypto. They only show us our assets and give us the possibility to manage them, swap them and depending on the wallet even sell and buy them.
The market is still adjusting to the reality of having cryptocurrency as a payment method for its products and services. Using a digital wallet with a Fiat card is still the most common way to do so.
However, as the number of crypto users increases worldwide, companies are watching as a new type of economic relationship starts to evolve.
In a report made by Reuters at the end of 2021, the global payment processor Visa is on the move to “launch services that will allow buying, selling and custody of digital currency through its banking partners”.
PayPal, another mogul in payment options already works with crypto in north-American soil and just last year released the same for United Kingdom users.
As for Amazon, the giant retailer, the plans are a bit deeper as rumors say. The company has posted a job looking for a “Head of Digital Currency and Blockchain” which can be an indicator of the company’s wish of not only accepting crypto but also to possibly launch their own cryptocurrency.
With all the moves being made and as the cards unfold on the table, it is almost inevitable that cryptocurrency will start to be a part of the digital wallet’s possibilities.
The world needs to move faster towards crypto
Digital wallets – as digital banks – made things easier for people around the world. With the global pandemic, the numbers got even higher.
A study made by UK-based research firm Juniper Research showed that 2.5 billion users across the world use banking services digitally back in July 2021 and that this number can go up to almost 53% of the global population by 2026.
However, what many people still don’t see is that fiat money and regular bank systems can also be faded as the digital evolution becomes stronger.
As the boundaries of the world become invisible and virtual reality begins to surround us, economic systems will need to become faster and less bureaucratic.
I mean, we can’t have a virtual world where you need to pay expensive fees to buy something from a user in another country, or even wait for someone to authorize a transaction.
In the virtual world, everything needs to be faster, simpler, and efficient.
Even though governments and financial institutions are still trying to figure out how to navigate those waters, cryptocurrencies and blockchain technology is already ahead promoting the solutions that the digital world needs.
That’s why those companies can’t and don’t want to stay behind. It seems like they already know that cryptos are here to stay and blockchains are here to help.
By using cryptocurrencies in their payment options, companies (whether it is for e-commerce or for payment processors) can offer the user fewer fees in global purchases, safe and fast transactions, and a system that actually matches the brand new virtual world.
It’s not only about being optimistic anymore – it’s about being realistic. To make virtual work you need virtual solutions. Period.
Maluh Bastos
Klever Writer
Follow on Twitter
Disclaimer: This is not a financial advice. Do your own research. Consult a professional investment advisor before making any investment decisions.
