Smart Wallet Market Overview

Smart Wallet Market Size Was Valued at USD 256.17 Million in 2023 and is Projected to Reach USD 478.94 Million by 2032, Growing at a CAGR of 7.2% From 2024-2032.

A smart wallet refers to a smartphone-connected wallet that allows users to protect cash and credit & debit cards from theft. The smart wallet also allows user to track their wallet through GPS tracking. Apart from these features, many smart wallets also offer a built-in power bank, Wi-Fi hotspot, thief detection camera, and other advanced features. The increasing adoption of contactless payments is also one of the major drivers of this market's growth, as it eliminates the need to carry cash or cards with you all day long, which can be inconvenient and unsafe in certain situations. The increasing number of smartphone users and the growing need for security are some of the factors driving the growth of this market.  Amplified urbanization, along with consumption, is contributing to the adoption of contemporary methods of everyday functioning in developing countries. This covers transportation, banking, food shopping, and even healthcare. In emerging nations, such lifestyle changes are driving the demand for smart linked wallets.

Dynamics And Factors Of Smart Wallet Market

Drivers:

The Need For Technology-Aided Features And High Disposable Income Are The Drivers For Smart Wallet Market

Because of the increased need for novel and advanced technologies, the worldwide smart wallet industry is experiencing substantial expansion. In addition, the market's growth is being aided by the increased acceptance of contactless payments. Other factors driving the market's growth include rising demand for multifunctional wallets and an increase in the number of start-ups. The expensive cost of hardware and lack of understanding regarding smart wallets, however, is limiting the market's growth. This is because smart wallets are becoming more popular in these areas. Moreover, the global smart wallet market is predicted to rise significantly in the Asia Pacific and Middle East & Africa regions over the forecast period.

Restraints:

High Prices In The Smart Wallet Market Restrain The Growth Of The Market

Smart wallets come with RFID, WiFi, Bluetooth, and an in-built portable charger which increases the pricing of the product. Normal wallet costs between USD 5 to 20 in a retail store as well as online. Therefore, in comparison with a normal wallet, technology-abled wallets cost more between USD 70-150 which can be considered a high-priced product. In a developing country, where spending capacity is limited, products like smart wallet have less frequency to purchase which impede the growth of the market.

Opportunities

IoT Quipped Smart Wallet Presents A Potential Future Opportunity In The Market

IoT-based devices are flourishing in the market since the technology advancement captured the multi-industry opportunity. Contactless payment is an apt example of IoT technology integration. Currently, smart wallet integrates WiFi, Bluetooth, Wireless charging as well as GPS tracking. In that regard, IoT embedded smart wallets possess a bright opportunity for the growth of the market.

Segmentation Analysis Of Smart Wallet Market

By Type, Wireless Charging is expected to be dominating in the Smart Wallet Market. Nowadays, many smartphone manufacturers are coming up with wireless charging facilities for the high-end phone segment. The New Smart wallet comes with a built-in power bank that can charge the phone wirelessly.  Volterman is a leading provider of smart wallets with integrated phone chargers. There is a certain demand for such products from high-earning individuals who spend largely on products like smart wallets which drives the market growth.

By Connectivity, the WiFi segment dominates the Smart Wallet Market. The Smart Wallet is a piece of technology that includes a memory bank with an internal capacity of 64 gigabytes that may be used for file storage when connected to your WiFi via the Volterman hotspot. File transfers, file completion checks, and other tasks are substantially faster when done via WiFi, which is why the hotspot is so useful. Also, these smart wallets now have access to the memory card with the same permissions as a local phone, allowing them to create, rename, and remove folders and files in the same way as a file manager with WiFi.

By Distribution Channel, the Online store is dominating the Smart Wallet Market.  The online store is the most preferred channel to sell smart wallet-like products. A smart wallet is a fairly new concept and has a very limited customer base. To the growth of the market and maintain profitability by reducing possible overheads such as brick and mortar expenses, operational costs, and employees’ salaries. These new startups avoid such additional expenses by setting up an online business. Also, since the pandemic, a large customer base shifted to a digital platform for general shopping purposes. Therefore, the online store segment is expected to grow substantially during the forecasted period.

Regional Analysis Of Smart Wallet Market

North America dominates the Smart Wallet Market. Consumers' increasing use of technologically improved products and services can be credited to this region's growth. Furthermore, rising disposable income levels and increased demand for luxury items are expected to drive the smart wallet market in this region forward. Because of the fast adoption of new technologies, the market in North America is expected to increase significantly. Because of the prospective demand, smart wallet manufacturers are concentrating their efforts on this area. Furthermore, increased disposable income and customer preference for trendy products are expected to promote market expansion during the projection period.

Europe Market expected to grow substantially using forecasted period. Europe is the hub for fashion accessories and utility developments. It is also an opportune region for big fashion brands as well as smaller startup companies that integrate fashion and utility accessories with technology. Smart wallet-like products are the key attraction in the exhibitions, fashion shows, and other platforms which are fairly active in the region. The adoption of these new technologically advanced products is high compared to other regions which makes the potent market for the growth of the smart wallet market.

Top Key Players Analyzed In Smart Wallet Market

• Ekster Wallets
• REVOL INC
• WOOLET.CO
• NXT-ID
• Walli Wearables
• Volterman and other major palyers.

Key Industry Developments in the Smart Wallet Market

• In June 2024, Coinbase is riding the wallet wave, with the launched of its next generation of smart wallets. A blog post from the company says the wallets “address the biggest pain points of the crypto experience today – complex onboarding, network fees, and recovery phrases – making the transition to on chain smoother than ever.
• In June 2024, Blockchain tech company Squad Labs has raised $10 million in new funding. The Series A round was led by Electric Capital with participation from RockawayX, Coinbase Ventures, L1D, Placeholder and Mert Mumtaz.