蘑菇AV

Starbuck鈥檚 loyalty program and digital wallet already have high adoption, meaning consumers may be open to a stablecoin and the currency could integrate into Starbucks鈥� existing digital wallet. While consumer adoption remains a significant hurdle, Starbucks' strong digital ecosystem positions it well to introduce financial innovation. Prediction: Ecommerce growth will flatline.

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.

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.

Gen Z is the first mobile payments-native generation. By 2028, 67.8% of US adults will be mobile wallet users, per our forecast. Gen Zers are already way ahead: 85.1% made an in-store or online payment using their phone in 2023, according to Federal Reserve Bank of Atlanta.

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.

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.

The Vipps wallet in Norway is the first to use Apple鈥檚 NFC tech, opening the floodgates for more to deploy the tech.

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.

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.

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.

Most carriers provide pre-login access to quotes, support, and ID cards. 75% offer digital wallet integration for mobile ID storage. 100% allow premium payment via mobile app. What this means for insurers: As top carriers raise the bar on mobile experience, insurers lagging behind face growing pressure to modernize.

蘑菇AV one in five (19%) of Gen Z consumers in the UK and 12.5% of UK millennials routinely turn to digital wallets for bill payments, per a July 2024 PYMNTS Intelligence survey. Other P2P payment providers have also been pushing innovation for this use case.

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.

Users can receive direct deposits, set up digital wallets, and pay bills using the same institutions where they make retail purchases. That means ad targeting can be extremely granular. Mercado Libre, for example, combines marketplace data with insights from its fintech arm, Mercado Pago. The result: Richer audience profiles and more precise ad targeting across its ecosystem鈥�.

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

But despite being the first foreign credit card network to gain approval, Amex has fallen behind the other card networks in gaining partnerships with China鈥檚 major digital wallets. Alipay already partners with Visa, Mastercard, Discover, Diners Club International, and JCB.

And digital wallet use is much more pronounced among this cohort鈥�27% of 18- to 29-year-olds in the UK use digital wallets daily, and 33% use them weekly鈥攖he most of any age group, per January 2024 YouGov polling for Brite Payments. Interest and adoption of AI is particularly high among Gen Z.

In May 2024, Visa changed the game, launching a single in-app credential that card issuers can place in consumers鈥� digital wallets. An issuer can give a cardholder the flexibility to toggle between multiple accounts tied to one card. Visa argues that offering a single credential can streamline users鈥� payment experience.

And it could have pushed consumers to use an alternative digital wallet like Shop Pay or Cash App Pay to check out online. If consumers had a good experience with these other wallets, they may also be more willing to use them in the future, affecting PayPal鈥檚 future volume.

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

The digital wallet added Afterpay and will soon add Klarna. Google Pay already has tie-ups with Affirm and Zip. Expanded virtual cards. Google Pay will now let Discover cardholders in the US set up and pay with a virtual card from their Chrome or Android device. This feature was already available to American Express, Capital One, and Citi cardholders. Added fraud protections.

Feature innovation is transforming digital wallets into everyday commerce enablers.