WHILE the development of digital payments started with the launch of the first universal credit card in the 1950s, the space has rapidly evolved, and now the mantle is being passed to e-wallets, otherwise known as mobile wallets.

In 2014, credit and debit cards accounted for more than half of e-commerce payments in terms of transaction value. However, that share is predicted to drop to 49% in 2019 as mobile wallet options start to gain ground, according to a report by the United Nations Conference on Trade and Development.

In Asia, mobile wallet providers are looking to consolidate their positions in the new payments landscape. China is a battleground between payment giants Alipay and WeChat Pay, with Alipay having the most active users between the two. However, WeChat Pay is zeroing in on the top spot leveraging on its popular WeChat social media platform. Around one-third of the Chinese population (469 million) are active mobile payment users, according to estimates from the Payment and Clearing Association of China.

Taiwan, in contrast, is a free-for-all for mobile wallet providers, with one Taiwanese banker estimating that there are over 30 mobile providers in Taiwan. This has resulted in users being flooded with various interfaces and platforms, undermining the intended seamless nature of mobile payments.

Despite the number of e-wallet providers in Taiwan, the island is one of the region's laggards when it comes to electronic payments. The Taiwanese regulator, the Financial Supervisory Commission (FSC), says that only 26% of payments were made electronically, compared to 56% and 65% in China and Hong Kong respectively. Currently, LINE Pay is the most used payment service in Taiwan among all age groups, according to market research firm DataYogurt.

Following the demonetization programme in India last year, wallet providers in India have been growing steadily with the likes of Airtel Money, Citus Pay and Paytm being key players in the market. In fact, Paytm recently announced the official launch of Paytm Payments Bank, a move by the provider to reach out to financially neglected communities.

There is no question that wallet providers are increasingly playing a larger role in the electronic payments industry, however, to stay afloat they need to be willing to embed themselves in the digital ecosystem. Momo, a Vietnamese mobile wallet backed by Standard Chartered, forged a partnership with Uber to allow Uber users to pay using their Momo wallet. Similarly, Jetstar Airlines agreed to link-up with Indonesia’s DOKU for the purchasing of airline tickets.