Digital Wallets Are Adapting in an Evolving Marketplace
The continuing evolution of digital wallets, also known as mobile wallets, highlights the growing importance of broadening functionality coupled with consumer confidence in security. Universal wallets — which are wallets that support multiple and unrelated items — and merchant-supported wallets, which are wallets that narrowly focus on a specific brand, are experiencing increased use as more consumers favor contactless payments. In addition, the digital wallet market is experiencing a bifurcation, with a split between rising super apps and dedicated single- or limited-purpose wallets.
This new Mercator research delivers an in-depth look at the current state of digital wallets, where they are headed in the future, and actions that may need to be taken now.
"The marketplace continues to define itself as use cases evolve and consumers develop more sustainable preferences. The table stakes of payments through digital wallets provide an opportunity to expand how those payments are processed, and serve as a gateway to digitize other items commonly found in physical wallets," commented Jordan Hirschfield, Research Director at Mercator Advisory Group.
This report is 21 pages long and has 10 exhibits.
Companies and other organizations mentioned in this report: American Express, Apple, BMW, Bonvoy, Cash App, Diners Club, Early Warning Services, Genesis, Goldman Sachs, Google, Hilton, Hyatt, JCB, Kia, Mastercard, Paypal, Samsung, Schlage, Starbucks, Target, Tesla, The Walt Disney Company, Venmo, Visa, WeChat
One of the exhibits included in this document:
Highlights of this document include:
- Current State of Digital Wallets
- Making Payments Remains the Primary Use of Wallets
- The Convergence of Digital Wallets and P2P Services
- Card on File
- Buy Now Pay Later (BNPL)
- Merchant Acceptance
- Near-Term Next Steps: Crossing Into Super Apps
- Digital Identification
- Physical Entry
- Wearables as Extension
- Long-Term Next Steps
Interested In This Report
In 2023, for the first time, the North American PaymentsInsights (NAPI) Digital Transactions and Emerging Technologies Survey captures moment-in-time data about the metaverse, biom...
Apple has launched Savings, a component of its financial ecosystem that positions it to become a personal payment stack service provider. The ability it has to keep customers withi...
Digital wallets have long been a place to store payment cards, boarding passes, and tickets. More recently, tech providers like Apple have added mobile driver’s licenses on a limit...