Celent has seen digital wallets proliferate, develop, and grow to the point where they are now a mainstream payment method in most markets around the world. Banks have been active participants with different stances towards wallets, depending on the geography. And yet, Celent believes that the most recent market developments require banks to rethink their wallet strategy.
In this report, we take an in-depth look at the diverse world of digital wallets, discuss the following industry developments, and consider implications for banks.
- Apple opening access to NFC.
- New tools emerging to further streamline customer experience of paying with cards, such as fast guest checkout tools, Click to Pay, and Paze.
- The networks introducing Visa Flexible Credential and Mastercard One Credential, giving customers more choice how they fund their card transactions.
- Account-to-account (A2A) payments continuing to make inroads into e-commerce, from European Payments Initiative (EPI) launching Wero to local European “domestic champions” going beyond person-to-person (P2P) payments and starting to connect across borders.
- Non-bank wallets around the world, including emerging markets, becoming more accessible and interconnected.
- Growing momentum behind digital assets, particularly stablecoins and digital Euro.
- Digital identity wallets coming soon to all European citizens.
- AI agents emerging with the promise to redefine how customers shop and putting further demands on digital payments and trust infrastructure.
With so much change underway, banks must make sure their digital wallet strategy remains fit for purpose now and in the years to come.
