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Digital wallets are gaining share of retail transactions in the UK. Retailers that don鈥檛 accept them risk losing sales.

The news: Google Pay added Klarna to its in-app BNPL roster of Affirm, Zip, and Afterpay. Our take: Klarna鈥檚 late adoption of a physical card like Affirm鈥檚 Affirm Card in the US set the BNPL provider back in terms of capturing a wider user base and payment volume. Integrations like Google Pay and Apple Pay can help overcome that gap鈥攖hough Affirm also has partnerships with both Google Pay and Apple Pay.

Uptake could be limited given the crypto market plunge

A flurry of interest and an unexpected announcement from PayPal show where banks see the biggest value of their own stablecoins.

The payments giant is expanding its financial media network to monetize its data and push profitability efforts forward

The campaign鈥檚 associated sweepstakes encourages users to pay more frequently with PayPal

The company is trying to better market itself as a B2B company and grow its checkout business

A rewards integration coming later this year could make Synchrony a more attractive co-brand partner

Major payment players like PayPal and Visa that invested in them are likely celebrating this regulatory movement

Marqeta Flex helps digital wallets and card issuers embed BNPL options, eliminating the need for direct integrations with merchants

Financial institutions (FIs) will burst through the financial media network (FMN) door first cracked open in 2024. Chase made headlines in April by announcing its new ad business, followed by PayPal in May. They鈥檙e the most high-profile FIs to do so yet, signaling that FMNs could be a meaningful new revenue stream for the financial services industry.

PayPal is the most popular mobile payment app that US adults typically use, with over twice as many users as the next most popular choice, Venmo, according to November 2024 data from YouGov.

Fintechs, banks, and the government will reshuffle the payments deck in 2024. New features and competition will redefine the digital wallet user experience, and FedNow will pivot payment flows in new directions.

Consumers will use proximity payments more often as they adopt additional digital wallet features. Annual mobile proximity spend per user will grow at a 12.4% average annual rate from 2024 to 2028. Providers are equipping mobile wallets with a broadening array of features that give consumers more reasons to use鈥攁nd spend with鈥攖heir digital wallets.

Dramatic shifts are in the works for 2024, as BaaS, social media players, genAI, and new digital wallets reshape the banking landscape. Our top trends explore what鈥檚 in store.

Additionally, some Gen Zers and millennials are saying goodbye to physical wallets in favor of digital wallets: 54% of Gen Zers and 41% of Millennials have opted out of purchase because a business didn鈥檛 accept digital wallets. We forecast that 45.3 million millennials and 38 million Gen Zers will use contactless payments in 2025.

Digital wallet adoption. Digital wallets are powering the region鈥檚 digital economy. Consumers used digital wallets for more than half of online purchases in Latin America as of 2023, per an AMI report cited by Evertec. Pandemic-related digitization and improved internet access have supported wallet usage.

Until recently, Paze relied on partnerships with individual merchants to gain digital wallet market share. It鈥檚 also only available at the seven banks that own EWS. Fiserv鈥檚 impact: Paze鈥檚 partnership with Fiserv is a big win for the mobile wallet鈥攂uilding on a similar partnership with Worldpay.