The advancement of digital payment methods especially the use of the digital wallets has greatly impacted the financial industry as it provides safe means of payment. Nonetheless, while these platforms have become popular, user participation is still low, and current platforms do not offer new functionalities that could improve consumer interaction and address the variety of consumer segments. This research, titled "Exploring Innovative Use Cases for Enhancing Digital Wallet Adoption and User Engagement: The research titled “Digital Wallets: A Strategic Study for Future Implementation,” looks at possible new use cases where digital wallets can be applied to enhance their current roles of facilitating payments. The research aims at establishing how new technologies like; Artificial Intelligence (AI), Blockchain, Augmented Reality (AR) and gamification can improve engagement, the user experience and thus create more adoption. Some of the key areas include Peer-to-Peer (P2P) lending, Cryptocurrency, Voice identity, and transactions that can serve the unbanked population as well as regions that are still to embrace digital wallets. Technological factors, consumer behaviors, and socio- economic conditions that affect the uptake of digital wallets are discussed in this research to guide Fintech firms, banks, and regulators. The study used a systematic literature review which involved using articles from the last four years from academic journals, industry reports, and case studies. This particular secondary research helped to determine the tendencies, problems, and potential of digital wallet usage, including such aspects as simple and intuitive interface for non-technical users, the application of gamified approaches in financial literacy, and the opportunities for the implementation of blockchain technology to provide financial services to unbanked customers. Therefore, the research shows that gamification, P2P lending, and cryptocurrency-enabled wallets will greatly increase user engagement and financial inclusion. In addition, AI-enabled personalization in the context of digital wallets, and AR-based shopping represent a vision of how the future of cross-border payments, sustainability incentives, and UI advancements will shape the user experience. Finally, the research provides a set of tactical recommendations for digital wallet providers on how to bring such innovative use cases into practice to enhance user engagement and to expand market coverage in the developed and developing countries.
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