蘑菇AV

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

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.

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

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.

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.

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

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.

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.

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.

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.

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.

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�.

The news: Publicis Groupe has won PayPal鈥檚 global media business, building on the holding company鈥檚 winning streak and proving to rivals that its momentum in securing major accounts shows no signs of slowing. WPP Media previously handled PayPal鈥檚 media account but resigned the account in April, citing the need to 鈥減ursue other opportunities,鈥� per Ad Age. Our take: Publicis鈥� win of PayPal鈥檚 global media business underscores a growing advertiser shift toward integrated partnerships, where creative, media, and retail strategies merge to unlock greater performance and monetization potential.

US ad spend with financial media will reach over $600 millions this year, according to 蘑菇AV forecasts, but still represent a small fraction of the commerce media landscape. "This is a really nascent space. There aren't many players that make up this cohort of financial media networks (FMNs), and they represent a really diverse array of types of financial companies," said our analyst Sarah Marzano during a recent episode of "Behind the Numbers."

FMNs are a small but burgeoning part of commerce media, offering valuable first-party transaction data. Despite their promise, FMNs face scale limits due to data sensitivity and must find ways to shift audiences toward commerce-focused behaviors.

The news: JPMorgan will charge fintechs fees to access its customers鈥� bank account information, per a report from Bloomberg. Our take: This fee regime would be a pivotal win for JPMorgan that would undoubtedly be emulated by other banks anxious to tap a new revenue stream.

The news: Tech company Hewlett Packard (HP) is reportedly pitching HP Media Network, an ad network focused on laptop-targeted ads and desktop streaming, per Adweek. HP Media Network will sell ads that show up on HP computers and apps, and will promote its first-party data to give adtech firms access to offsite ads. Our take: HP鈥檚 launch could capitalize on growth in the desktop and laptop ad market鈥攂ut the company needs to prove its offerings as distinctly beneficial compared with competitors, or risk falling victim to advertisers鈥� concerns over investing in new offerings as budgets are slashed.

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.

The news: A coalition of major US banks is pushing for reforms to the recently enacted GENIUS Act. The banks are concerned that a loophole could give non-bank competitors advantages over more regulated traditional banks, per AInvest. Our take: The main challenge for traditional banks is that they have to compete on a new front with different rules. But it鈥檚 also a major risk to their customers, who could not only move their money over to competitors鈥� accounts鈥攂ut also lose it. While a 4% reward rate is highly attractive and far exceeds most traditional savings account interest, these stablecoin holdings are not necessarily protected by FDIC insurance. Without this insurance, a platform failure could mean consumers lose their entire investment鈥攁 risk that does not exist with a federally insured bank deposit.

The news: Despite global cuts in ad budgets, several companies are diving head-first into their own ad offerings to diversify revenues. HP is reportedly pitching HP Media Network, an ad network highlighting laptop and desktop ads. The move includes ads on HP computers and apps, offsite ads, placements in social and email campaigns, and a free ad-supported TV service. Our take: Introducing ad offerings isn鈥檛 necessarily a lost cause鈥攂ut knowing how to position new ad products is key to succeeding in a time when advertisers are increasingly hesitant to invest without measurable results.

Just a third of adults in Canada will use mobile peer-to-peer (P2P) payments this year, and adoption will barely grow through 2027. Mobile banking apps and digital wallets must rethink their strategies to capture P2P users鈥攎aking the most of a population that doesn鈥檛 yet have strong P2P brand loyalty.

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.

Retail media is not just for retailers anymore. US commerce media ad spending is projected to hit $118.4 billion by 2029, growing at a 15.3% compound annual growth rate (CAGR), per a May 蘑菇AV forecast.