蘑菇AV

Accepted contactless payments will include credit and debit cards, Apple Pay, and other digital wallets. Why this matters: Cash App鈥檚 nano- and micro-business can readily benefit from not having to invest in costly point-of-sale (POS) hardware, instead using an iPhone or iPad for sales. Cash App counts over 1 million sellers, which could help softPOS use scale dramatically.

Digital wallet adoption significantly outpaces credit card usage. Consumers strongly prefer digital wallets (58.2%) over credit cards (36.9%) for online purchases, per 蘑菇AV and ESW. Retailers must prioritize digital wallet integration in checkout processes to maximize conversion rates and reduce payment friction.

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.

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.

Digital wallets or bust: More than half of Gen Z (54%) and 41% of millennials have walked away from purchases because digital payments like Apple Pay or Google Pay weren鈥檛 accepted, versus just 17% of older shoppers. Our take: While younger consumers tend to adopt new behaviors faster, they鈥檙e also driving the direction of retail innovation.

The account also includes digital wallet and Zelle access, and there's no monthly maintenance fee if the parent has an eligible Huntington checking account. This can help the bank build strong relationships with teens so they remain customers in adulthood.

Sezzle Balance, a pre-loadable digital wallet that streamlines consumers' installment payments. A new browser extension that alerts Sezzle users about Sezzle Spend rewards opportunities and coupons. A revamped payment experience, Sezzle Checkout, which reduces friction for users and increases completed purchases for merchants.

Gateways can further stand out by offering the customer鈥檚 local, preferred digital wallet based on their geography (e.g., Pix in Brazil). Sources. Amazon. CNET. Fiserv. Global Payments. Google. Mastercard. NLX. PayPal. Reuters. Salesforce. Stripe. The Wall Street Journal. U.S. Bank. Visa.

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.

笔补锄别鈥檚 digital wallet automatically suggests relevant payment options to optimize customer鈥檚 transactions experience and potential rewards/cash back. Our take: Groundwork has been set for Paze to take off.

According to PYMNTS Intelligence and Google Wallet survey released last year, only 7.9% of Apple Wallet users used a digital wallet for identification purposes. However, that percent is set to increase with iOS 26鈥檚 incorporation of more air travel information. Airline tickets within Wallet will display airport maps and changes to gates and boarding times.

This removes friction from tasks like moving checking account money to an investment account or funding a digital wallet, as the funds settle instantly. This use case is also less susceptible to fraud, avoiding a key hurdle to consumer adoption. There is a limited opportunity for a bad actor to get involved.

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.

Fintechs have also thrived in areas where banks have been hesitant to invest due to regulatory issues or strategic limitations, such as crypto and digital wallets. Our take: Fintechs have ample opportunities to expand their success using the nimbleness that incumbents lack.

The company has been beefing up its BNPL capabilities ever since its exclusivity period with Affirm ended earlier this year

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

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.

UK mobile P2P payments usage growth has a case of the doldrums鈥攂ut bank and digital wallet providers can explore several options to give it a boost.

The digital wallet is already the top P2P service among teens. Its youth-facing products could help monetize the app

Launched in 2003 as an integrated payment solution for Mercado Libre鈥檚 marketplace, Mercado Pago has evolved into a comprehensive fintech platform offering digital wallets, QR code payments, point-of-sale (POS) machines, credit cards, and more. These financial services have enabled millions of unbanked consumers to participate in Latin America鈥檚 thriving digital economy.

Discover the dynamic shift toward digital wallets in the US and the UK in the latest podcast episode of "Behind the Numbers: The Banking & Payments Show." Delve into the compelling discourse on how younger generations' move to digital is rendering traditional wallets obsolete. Join host Rob Rubin, our US-based analyst Tyler Van Dyke, and UK-based analyst Carina Perkins as they unravel trends in digital transactions for dining, shopping, and ID verification. In the "For Argument's Sake" section, we dissect the fierce competition for market dominance among industry giants like Apple and Google, established players like PayPal, rising star Paze, and potential disruptors. Tune in for a forward-looking conversation and hit subscribe for the latest insights. Key insights: - Youth-led shift: Analysis reveals a robust trend among younger consumers pivoting to digital wallets for everyday activities, indicating a cultural and technological shift. - Market dominance debate: We uncover the strategic moves by tech titans and emergent challengers vying to capture the largest share of digital wallet users. - Cross-Atlantic perspectives: Insights from US and UK analysts present a diverse view on the adoption of digital wallets, offering a broader understanding of the global digital economy.

Feature innovation is transforming digital wallets into everyday commerce enablers.

Retailers can use digital wallets to speed up the checkout process both online and in-store and reward repeat customers. But creating a standalone wallet may not be the best solution for most retailers, and that鈥檚 where partnerships with existing providers can help out.

Digital wallets are fast becoming consumers鈥� preferred way to pay, both in and out of the store.