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Gen Zers are flocking to emerging payment methods, but card-based options, led by debit cards, remain supreme. Payment providers must align offerings with Gen Z鈥檚 preferences now as their spending power grows.

Consumer device and behavior trends are affecting payment providers鈥� strategies across retail, P2P, B2B, disbursement, and cross-border channels. Here鈥檚 what that means for the payments ecosystem.

Digital payment methods continue to displace cash and checks in the US payments ecosystem. But after a pandemic-driven crest, growth is moderating amid economic uncertainty, resetting the stakes for share of wallet.

Despite a tough few months, Stripe is willing to invest in crypto. Industry rivals may need to take note.

Mobile P2P payments are struggling to capture users in Canada. But banks and digital wallet providers can lean into their respective strengths to create a rosier outlook for growth.

Akin to the super app playbook, users can apply wallet balances to a broadening array of products and features鈥攊ncluding debit cards, bill payment services, crypto, and multicurrency exchange rates. But the lingering power of cash should not be underestimated.

This article originally appeared in Insider Intelligence's Payments Innovation Briefing鈥攁 daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily. Are you a client? Click here to subscribe. Want to learn more about how you can benefit from our expert analysis? Click here.

Venmo recently added crypto transfers to other users and external wallets. PayPal launched this feature last year. And through a partnership with Visa+, PayPal will let Venmo and PayPal users to transact with one another later this year. Braintree. Braintree contributed greatly to PayPal鈥檚 transaction growth in Q1 and will be a vital part of PayPal鈥檚 business.

It鈥檚 testing a browser-based crypto wallet despite the industry鈥檚 tumultuous year.

On today's episode, we explore the evolution of the payments ecosystem and discuss the trends to look out for in 2023. In our 鈥淗eadlines鈥� segment, we discuss (among other things) buy now, pay later; credit card fees; and crypto. In 鈥淪tory by Numbers,鈥� we examine payments at retail stores. And in 鈥淔or Argument鈥檚 Sake,鈥� we debate whether interest rate scrutiny by regulators will impact credit card rewards programs. Tune in to the lively conversation between our host Rob Rubin and analysts David Morris and Jaime Toplin.

Proximity mobile payments are finally reaching a critical mass of users, fueling spending growth. While it will slow in the coming years, providers are capitalizing on growth by building multifunctional ecosystems that expand their captive audience and tighten relationships.

a range of stocks, crypto, and other assets via Twitter鈥檚 cashtags feature.

The partnership opens up the provider to a massive merchant network, which can help it add users and grow volume.

But it鈥檚 not all smooth sailing for Revolut: The neobank faces stiff competition from more established payment giants like Barclays, HSBC, and NatWest, which users are more likely to seek out for cards targeting higher earners. And Revolut faces bigger problems: Its auditor failed to verify about 75% of the bank鈥檚 reported revenues after multiple filing delays.

The president鈥檚 appointment of venture capitalist David Sacks, Elon Musk鈥檚 PayPal associate, as his crypto-AI czar indicates a shift toward looser regulation and a pro-business stance on AI. It could also favor companies like xAI while challenging market leader OpenAI.

Merchants must ensure that customers can use their preferred payment method.

We look back at the year鈥檚 most disruptive Big Tech payment stories and how the Big Four have expanded in the space.

Weaker discretionary spending would curb payment volume for Square sellers and potentially lower adoption of Cash App鈥檚 crypto services.

The $11 trillion US payment card network is developing new strategies to turn threats from fintechs, homegrown networks, and rising regulatory scrutiny into growth opportunities.

Block started letting Cash App users make payments via Cash App Pay to merchants that don鈥檛 use Square in September. American Eagle and JD Sports were among the first retailers to use the feature. The move can help Block compete more aggressively with PayPal, whose Venmo already lets users make payments at popular retailers like Amazon.

The big takeaway: The investigation could make PayPal update its merchant agreements so sellers can more easily offer competing wallets鈥攚hich could decrease PayPal鈥檚 payments dominance in Germany. PayPal has been expanding in Europe鈥攊t recently brought its crypto payments product to Luxembourg, for example. Any changes that come in Germany may dampen the firm鈥檚 growth prospects in Europe.

Launched in 2020, the country鈥檚 instant payment system boasts almost 132 million registered users鈥攁bout 62% of Brazil鈥檚 population. Pix is already the second-most-accepted ecommerce payment method in Brazil, according to Gmattos. Seventy-eight percent of sellers accept Pix.

But it hasn鈥檛 given up on continuing growth in financial services: It expanded into crypto payments and is embedding payments in increasingly creative ways, such as through Google Maps. The bottom line: Google has a huge, engaged audience from which it could generate more revenues with banking, payments, and insurance features.