As 2023 Approaches, Digital Wallets And Platforms Pave The Way For Financial Wellness


January is Financial Wellness Month, which encourages people to examine their finances and where their money is going.

Furthermore, the growing prevalence of digital wallets and platforms can transform transaction-by-transaction data to assist younger customers in better understanding their spending and automating the activities required to achieve their financial objectives.

It’s known as a virtuous cycle. However, technological assistance appears to be desperately needed. According to a new study conducted in cooperation with LendingClub, 57% of paycheck-to-paycheck customers believe that persistently rising inflation has hampered their ability to achieve long-term financial objectives.

Given that 63% of us live paycheck to paycheck, this indicates that a sizable portion of us faces obstacles in achieving our long-term financial goals.

Saving money is an important component. Setting aside some monies from each bi-weekly or monthly income to be transferred to savings or investment accounts can help to 1) pad financial reserves, 2) make returns through various investment products, and/or 3) pay down debt.

Of course, savings have been strained. According to experts, 32% of all consumers reported a decline in the part of their income they can save, while 42% of struggling paycheck-to-paycheck consumers acknowledged such constraints.

Separately, J.P. Morgan said in its own analysis that “excess savings” in the United States total $900 billion, down significantly from $2.1 trillion during the epidemic.

Willingness to Experiment

As they aim to enhance their financial wellbeing, consumers might benefit from a leg up, a little help, in making the leap from desire to reality. Digital wallets, which are among the most popular new payment options for the next year, can serve as a springboard for platforms and suppliers to assist them get there.

According to our research, 59% of customers who tried a new payment method in the last year chose digital wallets, and 42% of U.S. consumers polled are interested in the payment method but have not yet tried it, indicating a greenfield potential.