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A cryptocurrency wallet is simply a software program that stores public and private keys, enabling users to send, receive and store digital currencies. The number of crypto wallets has grown considerably and so has the demand for a reliable cryptocurrency wallet development company.
This article will focus on crypto wallet trends for 2020. We will bring out the top 8 cryptocurrency wallet trends that you may observe in the near future.
1. Increase in cryptocurrency wallet users
Cryptocurrency wallets have shown enormous growth from the past 2 years. According to Bitcoin.com, over 36 million crypto wallets have been created so far and this number is seeing no pause. It will continue to grow even more in the coming years due to the increasing adoption of cryptocurrencies.
If we would compare the crypto wallet users from the past 3 years, we will witness that there has been a 5x growth in crypto wallet users, says a report by Statista. In Q3 of 2016, the total number of wallet users was 8,951,582 which were increased to 42,290,501 in the third quarter of 2019. And it is expected to grow at the same rate in the following years.
2. NFC-based wallet solutions
NFC (Near Field Communication) enables the transfer of data wirelessly between devices in real-time. The trend is moving towards the use of NFC-based solutions, which is achieved by combining the smartcard interface and the reader into a single device that increases the proximity of transfer. Its considerable use has been initially observed in the UK and now it is gaining global adoption.
The use of NFC in crypto wallets would accelerate the exchange process between the buyers and the sellers. The sender only needs to tap on to the NFC tag on the wallet and the funds will get transferred to the buyer’s wallet address by automatically fetching its public address. According to a report by UK Finance, mostly two-third of the adults in the UK shop and pay by using the NFC or contactless mode. In this process, the smart phones only need to be in the proximate region from the terminal to process the payment. NFC wallet solutions are gaining a tremendous increase and it is expected that almost every crypto wallet in 2020 would be NFC-enabled.
3. International Remittance
International payment remittance refers to transferring payments internationally to family, friends, workers or any other individual in a foreign country. International remittance makes up the major portion of the country’s GDP. A major factor for the increase in international payment is the increased penetration of the smart phone and adoption of digital wallet solutions.
Crypto wallet payment solutions catered to the need for international payments in 2019 and it is expected that more innovations and design-thinking will progress in the coming time. According to Blockdata, the global remittance market is projected to grow to $1.035 trillion by 2022 and $1.413 trillion by 2025. The opportunity is huge for crypto wallets and these blockchain-driven wallets will transform cross-border transactions, by allowing cheaper and faster transactions.
4. Crypto wallet market consolidation
Mobile crypto wallets have captured a huge share of the crypto market. This year has seen a very fragmented and competitive crypto wallet solutions and it is expected to achieve a consolidation phase in the following year. Fortunately, many high-end crypto wallet users and influencers are looking for more ways to structure a more balanced approach to align the acquisitions of crypto wallet solutions. This process seems to be underway and it is anticipated that many players in cryptocurrency wallet development will emerge and showcase their technicalities and applied science in the crypto wallet solutions.
5. Crypto wallets will start replacing exchanges
We have seen no fewer hacks in the cryptocurrency exchanges in the years 2018 and 2019. And as we enter 2020, crypto users are believed to leverage all security features to minimize the chances of loss and fraud. Thus, crypto wallets will serve as a reliable solution.
We all know that no wallet application if fully free from the hacks but they do provide a sense of security in the minds of the users as a lot of efforts are done by cryptocurrency wallet developers to safeguard the digital assets. Thus in 2020, it would be interesting to notice the changing role of crypto exchanges and crypto wallets as the latter is anticipated to replace the former when it comes to storing and trading of crypto assets.
6. Loyalty programs will move to mobile wallets
Loyalty programs are structured marketing tactics that are generally devised by businesses for user acquisition. Loyalty programs act as a stimulating factor to increase traction and participation of consumers.
2019 saw the initiation of loyalty programs in the wallet app, allowing customers to accumulate and save on the loyalty points in the form of digital tokens or coins and redeem them in the near future. For example, loyalty points earned through a crypto wallet could be used for a variety of offers such as spending in hotels, airlines or many others. In 2020, more loyalty programs for crypto wallets are sure to emerge to connect users to a particular crypto wallet.
7. Shift from custodial to non-custodial wallets
Custodial wallets are the wallets that take the responsibility to store users’ private keys on the server, meaning that there is some level of access with cryptocurrency wallet developers. But the increasing number of crypto hacks has influenced businesses and individuals to shift to non-custodial wallets. A report by the University of Cambridge says that 73% of the wallets do not save or control the private keys (meaning they do not have any access to users’ funds) and 12% of the wallets let the users decide whether they wish the server to control their keys. In the coming year, it is expected that majority wallets would be non-custodial which would make the users have full control over their crypto assets.
8. KYC/ AML enabled internal checks
One of the features gaining huge traction in the crypto market is KYC/AML verification. A geographical-based KYC/ AML verification validates the real identity of the users. This feature is soon to be applied to all the wallet solutions which facilitate payments through crypto exchanges. It will act as an internal gateway to authenticate the users while withdrawing or processing any transaction through the crypto wallet.
The future of crypto wallets
Crypto wallets are sure to bring a positive change in the financial market. Consumers are just concerned about the privacy and security of their crypto assets. To address this concern, professionals of a cryptocurrency wallet development company are coming with more and advanced security features to enhance wallet security and enable safe transactions.
If you are planning to build your crypto wallet to tap into the billion-dollar crypto market, we can help. We customized crypto wallet development services, so whether you want to build a custom crypto wallet or white label crypto wallet, our cryptocurrency wallet developers harness their experience and expertise to lay the foundation of a secure wallet that accomplishes your business goals.
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