Whitepaper - The Evolution of Digital and Mobile Wallets The Evolution of Digital and Mobile Wallets | Page 2

The Evolution of Digital and Mobile Wallets

August 2016

TABLE OF CONTENTS
THE DIGITAL WALLET: INTRODUCTION .......................................................................................................... 3

DEFINING THE DIGITAL WALLET ................................................................................................. 4
DIGITAL WALLET DELIVERY TECHNOLOGIES ............................................................................... 5
ECONOMICS AND GROWTH POTENTIAL..................................................................................... 7
THE EVOLUTION OF DIGITAL WALLETS ........................................................................................................... 8

ONLINE ACCEPTANCE MODELS................................................................................................... 8
REDUCING FRICTION: SIMPLE IS BETTER .................................................................................... 9
ACCEPTANCE OF MOBILE WALLETS .......................................................................................... 10
EVOLUTION OF THE MOBILE WALLET SPACE ........................................................................... 12
THE BLENDED DIGITAL/MOBILE WALLET.................................................................................. 13
REGIONAL DIFFERENCES ........................................................................................................... 13
WALLET ECONOMICS ................................................................................................................ 14
PROVIDER STRATEGIES ................................................................................................................................. 15
THE WAY FORWARD FOR DIGITAL WALLET PROVIDERS .............................................................................. 18

FINANCIAL INSTITUTIONS ......................................................................................................... 18
CARD NETWORKS...................................................................................................................... 19
MOBILE NETWORK OPERATORS ............................................................................................... 19
NEW ENTRANTS ........................................................................................................................ 20
MERCHANT STRATEGIES ........................................................................................................... 20
KEY TAKEAWAYS ........................................................................................................................................... 22
ABOUT AITE GROUP ...................................................................................................................................... 23

AUTHOR INFORMATION ............................................................................................................ 23
CONTACT ................................................................................................................................... 23
ABOUT MAHINDRA COMVIVA ....................................................................................................................... 24

CONTACT ................................................................................................................................... 24

LIST OF FIGURES
FIGURE 1: GLOBAL ONLINE COMMERCE FORECAST ....................................................................................... 3
FIGURE 2: FUNCTIONS OF THE DIGITAL WALLET ............................................................................................ 5

LIST OF TABLES
TABLE A: WALLET TYPES BY DELIVERY TECHNOLOGY ..................................................................................... 6
TABLE B: MOBILE ONLINE PAYMENT ACCEPTANCE ALTERNATIVES ............................................................... 8
TABLE C: MOBILE WALLET ALTERNATIVES .................................................................................................... 10
TABLE D: RETAIL FINANCIAL INSTITUTION/ISSUER PROPRIETARY WALLET .................................................. 15
TABLE E: RETAIL FINANCIAL INSTITUTION/ISSUER OS/OEM WALLET........................................................... 16
TABLE F: RETAILER PROPRIETARY WALLET ................................................................................................... 16
TABLE G: RETAILER OS/OEM WALLET ........................................................................................................... 16
TABLE H: ONLINE MERCHANT PROPRIETARY WALLET ................................................................................. 17
TABLE I: ONLINE MERCHANT THIRD-PARTY WALLET.................................................................................... 17

© 2016 Mahindra Comviva. All rights reserved. Reproduction of this report by any means is strictly prohibited.

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