蘑菇AV

BNPL fintechs will need to harness digital wallets and demographic trends to maximize growth. Strong digital wallet offerings can help BNPL fintechs shore up moderate growth as competition intensifies. In a close race, Klarna will lead Affirm and Afterpay on payment value and users by the end of 2027.

But fraud still remained rampant across the holiday weekend, showing payment providers have more work to do to step up their protections

Revolut also still needs approval to integrate UPI payments in its digital wallet and link the UPI to its prepaid cards. If it can鈥檛 do that, Revolut will face the possibly insurmountable task of getting consumers to abandon UPI payments.

Retail media search is gaining steam while Google and other traditional search players lag. Marketers will grapple with genAI and measurement challenges as they rely more heavily on retailers鈥� search ad offerings.

The company used its two-sided network to capitalize on the holiday weekend

But the payment method鈥檚 volume grew slower than overall retail sales, suggesting providers need to do more to amp up growth

There will be over 100 million social buyers in the US in 2024, according to our forecast. TikTok Shop, which launched in the US in September 2023, will be the single largest contributor to buyer and sales growth this year.

What is non-endemic advertising, and what should brands and retailers know about this emerging ad format?

And digital wallets will help Gen Z drive crypto payments forward. Youth-oriented digital wallets like Venmo are laying that groundwork by giving customers more ways to transfer and spend crypto. To view the full forecast, click here. What should marketers in the payments industry do next? Allocate marketing resources heavily to mobile.

Consumer banking will evolve from a product-centric model to a customer-centric one over the next few years. This will require significant changes to banks鈥� apps, pricing structures, and customer service.

Digital wallets are leaning into feature innovation to become everyday commerce enablers. Features we expect more of in 2024 include commerce management tools like PayPal鈥檚 Smart Receipts and passwordless checkout. But the industry is moving fast, and by the end of 2024, we expect most of these features to be commonplace in all digital wallets.

Commerce media networks are expanding beyond retail into new verticals like travel and financial services, creating opportunities for targeted advertising using first-party purchase data. The key to growth will be achieving a delicate balance, and engaging鈥攔ather than alienating鈥攃onsumers.

This includes connecting them to country-specific digital wallets, enabling fund transfers directly to mobile wallets via blockchain, allowing them to pay or receive by card in real time, and linking them to bank accounts across the globe. Digital wallets hold promise鈥攂ut consumers want physical touchpoints.

Forty-one percent of US consumers said convenience was the primary reason they used digital wallets, per a Forbes Advisory survey. While customers may not feel comfortable turning off verification for all transactions, they may appreciate using it for transit payments, which are typically low value and often made in a hurry.

Mobile payment services can use modern card issuing to seamlessly scale and incorporate cards into users鈥� digital wallets. We expect US proximity mobile payment transaction value to jump at an 18.6% average annual rate from 2023 to 2027, hitting $1.094 trillion. Modern card issuing can help providers securely integrate cards into digital wallets by encrypting and tokenizing virtual card data.

Synchrony warned that intense payments competition creates a risk that its cards won鈥檛 be accepted or compatible with digital wallet technologies in the future, according to a Securities and Exchange Commission filing. Developing a digital wallet can protect it from these risks and also help encourage spending and tighten loyalty.

This is thanks to efforts like launching the International Consumer Friendly Zones program in Beijing and debuting an international version of its digital wallet for tourists. Our take: Alipay is still in a strong growth position despite letting in WeChat Pay. Opening up walled ecosystems is part of a bigger trend we're seeing as global antitrust scrutiny intensifies.

This makes them perfect prospects for payment brands like digital wallets to focus on cultivating relationships that can grow over time. Zillennials are also financially conscious. 45% of zillennials are budget-minded, per a PYMNTS Intelligence survey. And only 16% are considered splurge spenders.

The point-of-sale installment offering will face adoption hurdles given growing competition in the country

And feature innovation in digital wallets is making consumers even more attached to their preferred wallet. For example, new features like PayPal鈥檚 digital smart receipts and package tracking create more use cases for the app, boosting user loyalty. This will make it that much harder to convince consumers to switch to a new P2P platform like X.

The DOJ argued Apple 鈥渋nhibited the creation鈥� of cross-platform, third-party digital wallets and prevented third-party apps from offering tap-to-pay functionality. What鈥檚 in the lawsuit? Prosecutors argue that Apple Pay and Apple Wallet鈥檚 exclusive NFC access has kept third-party developers from creating competing wallets.

Key takeaway: These new features are transforming digital wallets into commerce enablers. They help users organize their commercial experience and maximize deal-seeking. Examples range from Apple Wallet鈥檚 digital order tracking and receipts to Google Pay鈥檚 loyalty program integrations.

And FedNow, slated to launch this summer, will let them immediately fund digital wallets via their bank accounts. Here鈥檚 how stakeholders will engage:. Merchants will add A2A checkout options to take advantage of fee savings. The cost of an average A2A payment could be just one-fifth of a debit card transaction. Merchants will also incent consumers to adopt A2A as a payment method.

US ad spend on financial media networks (FMNs) will more than double in 2025 and again in 2026. But with just $710 million projected in US ad spend in 2025, per June 2024 蘑菇AV forecast, FMN ad spend will be 18 times smaller than retail media network (RMN) ad spend.

Android鈥檚 open ecosystem lets any provider develop a digital wallet, creating fragmentation: Customers could have bank-based and retailer-based wallets in addition to Google Pay. Google Wallet helps reduce this fragmentation by consolidating payments and passes into one product鈥攁 push that these features build on.