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Back-to-back announcements from Chase and PayPal have cemented financial services as a formidable part of the commerce landscape. With their respective commerce media network announcements in spring 2024, Chase and PayPal joined buy now, pay later (BNPL) fintech Klarna and neobank Revolut in the burgeoning world of FMNs.

It also includes transactions that were agreed on social platforms initially, but payment took place elsewhere (e.g., PayPal, C2C transactions on Facebook Marketplace). It excludes YouTube and Twitch, cash transactions, travel and event tickets, tips, subscriptions, payments such as bill pay, taxes or money transfers, food services and drinking place sales, gambling, and other vice goods sales.

It finally allowed direct USD transactions between the two platforms in April 2024, when it enabled Visa+ on Venmo and PayPal. At the end of the day, a win for Venmo is a win for PayPal, but supporting a thriving Venmo ecosystem has clearly come at the cost of growing PayPal-branded mobile P2P volume in the US. Sources. Cash App. CNET. NBC News. PayPal. Venmo. Visa. Zelle.

Chase made headlines in April by announcing its new ad business, followed by PayPal in May. They weren鈥檛 the first FIs to launch FMNs, but they were certainly the most high-profile鈥攕ignaling to the financial services industry that FMNs could be a meaningful new revenue stream. FMNs will remain a niche space, but growth will be enormous.

How we define social buyers and shoppable media buyers: Our forecast definition of shoppable media includes media consumed on any digital platform that includes a direct call to action and leads to a purchase via the content platform site or app, through a retailer site or app, or through a third-party service (e.g., PayPal).

Cash App, PayPal, and Venmo let users pay in-store with QR codes, but that has not spurred widespread in-store use. Forging partnerships with mobile proximity payment leaders could help. PayPal and Venmo cardholders can now transact through Apple Pay, and Venmo cards and PayPal accounts are now supported in Google Wallet. Apple Pay leads on engagement and features鈥攂ut regulation looms.

As it broadens its acceptance network, this growth will likely eat into the market share of wallets like PayPal and Apple Pay. These competitors may have to innovate to keep their customers loyal and prevent them from making the switch to Shop Pay.

Apple and PayPal are the top two providers that Gen Zers would buy from based purely on brand trust. Apple is especially popular: 40.5% of Gen Zers would buy from it, versus just 19.8% of consumers overall. While their current primary bank or credit union rounds out Gen Zers鈥� top three choices, they鈥檙e the generation least likely to choose this option.

PayPal. PYMNTS.com. The Points Guy. TikTok. US Census Bureau.

PayPal. Stripe. TikTok. Visa. Worldpay.

Why it matters: EPI is a coalition of major European banks, credit institutions, and other payments firms developing a unified, real-time payments system throughout Europe to challenge US-based players like Visa, Mastercard, and PayPal. While it鈥檚 had to scale back its ambitions due to financing concerns, wero could still shake up digital payments in Europe.

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. This article is part of 蘑菇AV鈥檚 client-only subscription Briefings鈥攄aily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends.

That鈥檚 why PayPal, Venmo, Cash App, Apple Pay, Google Pay, and Samsung Pay are quickly introducing novel features鈥攐r quickly copying ones from competitors. The pace of commerce management feature innovation is reaching a frenzy. Six months ago, we identified four emerging features that digital wallets could add to centralize purchasing within consumers鈥� wallets of choice:.

Retail media鈥檚 rapid growth has spurred nonretail verticals to harness their first-party data to fuel their own commerce media networks. Retail media spending still dominates the commerce media landscape, but distinct challenger cohorts are finding their footing.

Agent Pay could transform the payments experience for consumers with hyperpersonalized recommendations

The P2P player was able to make this pivot thanks to the success of its integration in banks鈥� apps, which currently lead to 98% of its transactions

It also includes transactions that were agreed on social platforms initially, but payment took place elsewhere (e.g., PayPal, C2C transactions on Facebook Marketplace). It excludes YouTube and Twitch, cash transactions, travel and event tickets, tips, subscriptions, payments such as bill pay, taxes or money transfers, food services and drinking place sales, gambling, and other vice goods sales.

Google Wallet, Apple Wallet, and PayPal have also all beefed up their fraud protection services this year. But as payment players invest more in these protections, fraudsters can't rely on their old tactics. That鈥檚 why they are instead relying on scams that involve consumer deception.

But in spring 2024, financial titans Chase and PayPal each launched one, positioning FMNs as an industry game changer. Growing demand and regulatory clarity will encourage more FMN launches this year. Advertisers will need more first-party data, thanks to ad targeting restrictions from the American Privacy Rights Act and Google鈥檚 ongoing changes to how it handles third-party cookies on Chrome.

And alternative banking services like PayPal, Cash App, and Venmo have allowed customers who may not have qualified for bank accounts鈥攐r who have felt intimidated by account-opening processes鈥攖o use basic banking services. What this means for banks: Account opening growth will remain stagnant over the next few years, in part due to the shrinking unbanked population.

Gen Zers are driving growth in both emerging and traditional payment methods as they embrace cards, BNPL, and digital wallets. Payment providers must now align their offerings with Gen Z鈥檚 preferences as the cohort鈥檚 spending power grows.

The BNPL provider has made strong inroads in the US but faces steep obstacles in growing its market share

The BNPL player鈥檚 revenues doubled in Q4 thanks to users鈥� more frequent purchases