The history of digital wallets

Posted by: Admin Mysejiran    Published at: 25/09/2022

Digital wallets have grown in popularity since they were first introduced over 20 years ago.  Digital wallets allow users to quickly and easily make purchases in-stores and online, withdraw cash from ATMs, and send money peer-to-peer giving the user greater flexibility and convenience in payment choice.  To grasp why the popularity of digital wallets has grown, it is important to understand how they got their start.  The origins of digital wallets began over 25 years ago with then 21 year-old entrepreneur Dan Kohn in Nashua, New Hampshire, who sold a CD over the internet via credit card payment. 

 Today, the mobile payment platform has witnessed stunning growth — leveraging digital wallets accepted by merchants in over 50 countries and regions.  Kenya-based M-PESA launched its mobile banking and microfinancing service.  Today, it has over 37 million active users on its platform across Africa.  Google became the first major company to launch a mobile wallet in 2011. 

 2012 saw Apple`s Passbook, while not for mobile payments, could be used for boarding passes, tickets and coupons.  2015 brought Android and Samsung Pay.  Ever since, digital wallets like GrabPay, Lazada Wallet, PayPal, Touch `n Go, VCash, and many more, have made this mode of payment quite popular.  Digital wallets were first introduced at 7 17 Credit Union in 2016. 

 A digital wallet provides the user the convenience of storing one or more methods of payment digitally.  Instead of carrying cash or even cards, the user just stores his/her payment information on a smart device, like a phone, a watch or a tablet, locked and protected by a password.  Digital wallets are a secure payment method as user information is highly encrypted.  By 2025, digital wallets are expected to become the second most-preferred payment method. 


Shopping Cart

{{ }}

{{ item.quantity }} x {{ item.attributes.friendly_price }}

Cart is empty! Subtotal: {{ totalPriceFormat }}