020 021 VIEWPOINTS What Will It Take to Get to a Post-Plastic World? By Sam Shrauger SVP, Digital Solutions, Visa As we become more global, travel is increasing and there will be a need for our payments to be interoperable and work anywhere and everywhere. Digital wallet adoption has risen The bigger dynamic at play currently the rise of phone-based payment For all of these economies, the digital and credit cards, along with the rise of interoperable and work anywhere and significantly in the last couple of years is the various paths to digital wallet systems. PayTm in India operates 200 wallets are trusted by consumers, online payments between individuals everywhere. The high level of trust that due to better, faster smartphones adoption, driven by two distinct million wallets, making it the largest and in the case of Alipay and others, facilitated by PayPal and Venmo, consumers have in payment brands, and fast mobile data connections. factors: Local markets and consumer mobile payment service platform in they fulfill a regulatory function, consumer need for digital wallets is to facilitate payment, as opposed to Consumers find digital wallets need. Local markets tend to be quite the country (The Economic Times). Its making sure that consumers receive less urgent. Yet as we become more other consumer brands means that convenient because they are freed distinct from one another due to success is due to the demonetization what they purchase and merchants global and travel more, there will the dominant providers of digital from the burden of currency, coins, differences in regulatory frameworks, of the 500 and 1,000 rupee notes, receive their payments. be a need for our payments to be wallets will likely include credit card and last-minute trips to the ATM. technological infrastructure, and which created a dire need for digital But the trend has not taken off companies. They also make it easy for shoppers to the domination of a phone network currency. M-Pesa in Kenya, which in the US, where only 13% of We believe that anchoring the redeem coupons, loyalty points from or merchant provider. In every case lets people transfer cash using their adults have a digital wallet on future of digital wallets—in our case, stores and banks, and airline miles. where digital wallets have taken off, phones, is in use by 67% of the adult their phones (Gallup). American Visa Checkout directly in consumer We know that the future holds some consumers have had a pressing reason population (over 17 million), and a consumers are also hesitant to % needs and reducing payment friction form of integration for these online to transact digitally, and their options quarter of the country’s GNP flows adopt one-click payments online— will drive digital wallet development wallets into our household devices are relatively frictionless and easy through it (CNN). Alipay has reached they prefer to slow down and 67 and use. and wearables, but whether it’s the TV to access. dominance in China with 450 million receive acknowledgment of their or the fridge that ultimately becomes In global emerging markets, a lack users and is processing almost half of transactions (Gallup). Because of the of the adult population in Kenya uses most successful is still a question. all online payments (TechCrunch). M-Pesa, a service that lets people of financial infrastructure has led to widespread penetration of banks transfer cash using their phones.