The new report highlights an increasingly changing international payments, and thus a steady increase in adoption of digital wallets for cross-border transactions.
Digital wallets have seen key actions in cross-border transactions, and have skyrocketed at double-digit rates last year, according to the report. The study, a project by Pymnts Intelligence and Terrapay, examined 2,600 individuals across the UK, the US, Saudi Arabia and Singapore.
Most respondents surveyed show that they prefer digital wallets over other payment alternatives for international transactions. A staggering 42% of respondents say that digital wallets are the go-to choice when sending and receiving cross-border payments.
Several reasons explain the rise of digital wallet applications in cross-border transactions. Meanwhile, 92% say that perceived transaction speeds associated with digital wallets are the main attraction for use in international remittances.
Additionally, many respondents cited an increase in digital wallet trust levels over the past five years. Increased interoperability of wallets across regions contributes to increased levels of trust in digital wallets.
Despite the increasing pace of digital wallet adoption in some regions, there is a reluctance to use them for large numbers of transactions. Almost half of respondents prefer digital wallets to send “low stakes international forwarding.”
While current metrics are primarily positive, the report predicts even more impressive forecasts for improved adoption. This predicts growth in digital wallet adoption and is rising along with global financial literacy rates.
The US is leading the use of digital wallets for cross-border payments, but it must avoid competition from traditional bank accounts, credit cards and money transfer services. The UK and Saudi Arabia ranked second and third, while Singapore ranked fourth in digital asset adoption for international remittances.
Digital wallet records Sky High Utility
Apart from cross-border use cases, digital wallets impose claims on the domestic front. By integrating digital assets and other new features, it drives frontiers for domestic payments across several jurisdictions.
Recognizing the possibilities of digital wallets, Taiwan is starting towards the National Digital Wallet by the end of 2025. In 2024, Thailand relied on digital wallets to distribute funds for its citizens in a $14 billion digital money handout.
Report: Consumer habits drive earthquake changes in digital payments
Players in the financial sector are enduring the shift in digital payment sweep driven by emerging technologies and consumer habits.
American bankers say financial institutions are pushing for new positions ahead of changes in incoming calls. The report surveyed over 100 bank employees and demonstrated a deep understanding of the payment environment, surpassing over 85% of directorship positions occupying the cohort.
Almost all respondents say digital payment volumes will swell by the end of 2025 and transaction value will record growth. While only a small percentage of respondents are predictive and conservative, the general denominator is an overall increase in investment.
Bank executives confirm plans to scale up investments in emerging technologies to accommodate the changing landscape. Artificial intelligence (AI) is attracting the most attention from financial institutions.
Apart from AI, companies are experimenting with blockchains to experiment with faster payment times and regulatory compliance processes.
The report notes that changing consumer habits will drive the pace of innovation in the payments ecosystem. One is that consumers are increasingly adopting digital wallets and leaning towards biometric authentication, encouraging fintechs to invest in these verticals.
Furthermore, the need to provide stricter security standards for individuals is the driving force behind payment service providers. While the provision for identifying AI-based financial anomalies is increasingly being deployed throughout the board, smart contracts offer additional protection.
The need to provide faster payment times while achieving regulatory compliance will encourage investment from ecosystem players.
Apart from AI and blockchain, there is growing interest in the Internet of Things (IoT) and wearable payments. This is a trend driven by small payment companies.
Mainstream banks embrace emerging technologies
Traditional financial institutions are rushing towards emerging technologies and are leaning against blockchain to revolutionize their products. Banks are turning to blockchains of large numbers of digital debt, while other banks are pursuing custody licensing of digital assets to broaden their horizons.
With AI, large banks are leaning towards personalised services technology while automating common tasks
Consumers. The central bank has not been ruled out, and the Reserve Bank of India has launched an AI-based model to tackle digitally
scam.
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