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Adoption of digital wallets is approaching critical mass, but they won鈥檛 replace physical wallets anytime soon. However, a super app may be on the horizon, especially if companies can crack the ability to integrate payments with shopping services.

On today's episode, we discuss Apple鈥檚 dominance in the digital wallet arena. In our 鈥淗eadlines鈥� segment, we look at the ramifications of The Kroger Co.鈥檚 about-face on Apple Pay and how the EU is scrutinizing Apple Pay in its antitrust investigation. In 鈥淪tory by Numbers,鈥� we examine how Gen Z鈥檚 use of iPhones will keep Apple competitive in the digital wallet space and the success of Apple鈥檚 new savings account. And in our new segment, 鈥淲hat If,鈥� host Rob Rubin presents a few hypotheticals and discusses what things would look like if they were true. Tune in to the discussion with our analyst David Morris.

EPI wil pilot a digital wallet and instant payments system after axing its plans for a pan-European payments network

Bank of America, JPMorgan, and other banks are creating a digital wallet to compete with Apple Pay and PayPal鈥攂ut there鈥檚 one catch.

On this podcast episode, we explore the deployment of AI in payments in 2024. First, we discuss the most impactful use cases for AI in payments, such as fraud detection and prevention, false declines and purchase conversion, B2B payments, enhanced customer service, and digital wallets. In our "For Argument鈥檚 Sake" segment, we rank these use cases in order of impact and debate our decisions. Join the conversation with host Rob Rubin, our analyst David Morris, and Angela Murphy, PhD, client partner at Persistent Systems.

On today鈥檚 episode of The Banking & Payments Show podcast, we discuss the most important banking trends that we expect to see in 2024. We examine the big headlines from our Banking Trends to Watch in 2024 report, such as risky banking as a service partnerships, the social media players pushing the boundaries of banking, the disruption caused by AI and new developments with digital wallets. In a new segment called "Place Your Bets," using a total of 10 points, we allocate points to different trends to predict their likelihood of coming true. Listen to the conversation with guest host Marcus Johnson and our analysts Tiffani Montez and David Morris.

By the numbers: Remittance recipients rely on both digital and in-person avenues to collect their money. 44% of remittance senders said their friends or family receive transfers directly to a bank account, per a MoneyGram survey conducted in June 2024. 38% said they receive the money in an app or digital wallet. And 38% said they receive the remittance at a walk-in location.

This enables third-party digital wallets like Google Wallet to offer in-app contactless transactions for in-store payments. Apple will also let users switch their default contactless app. Access became available with the release of Apple鈥檚 iOS 18.1 update in October.

Digital wallets will be the only payment type to increase its share of worldwide point-of-sale transaction value between 2023 and 2027, making up 46% of total value by the end of that time period, according to a March 2024 report from Worldpay.

The integration is a win for PayPal after Amazon stopped accepting Venmo on its ecommerce site

Economic uncertainty could derail its efforts to reinvigorate growth

This leaves the BNPL industry back at square one in terms of regulation, creating uncertainty for providers

Reeling from 2024鈥檚 challenges, financial institutions must embrace bold strategies in 2025 to future-proof their businesses in a landscape plagued by economic, competitive, and regulatory pressures.

This bodes well for fintechs trying to build out their financial services offerings.

Payment provider innovation and regulatory changes are setting a long-term growth runway for cryptocurrency payments. But providers will still need to overcome low merchant acceptance and a sense of mistrust before crypto can go mainstream.

The actor鈥檚 appeal across generations can help attract users for the company鈥檚 debit card and in-store offerings

Our take: Paze could transform the digital wallet industry鈥攂ut not for some time given its slow merchant rollout. Still, other wallets like Apple Pay and PayPal will need to prepare for Paze鈥檚 influence. They can do so by investing in some of Paze鈥檚 innovative features, like payment method optimization.

Despite an industrywide push to grow via nonmerchant partnerships, BNPL players still rely on individual deals to reach large merchants

Payment providers are investing in AI to help streamline and personalize both the merchant and customer experiences

In-store payments provide a new growth avenue for BNPL providers facing slower industrywide volume growth

Even so, issuers may be slow to lift preemptive APR increases as they brace for economic turbulence

These can fuel more frequent debit card usage, helping these cards better compete against credit card programs