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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:.

This feature will help Venmo catch up to other P2P apps and bring in more frequent users.

Cash App users can now pay on popular retail sites like American Eagle and JD Sports, which can help Block boost payments volume and revenues.

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.

The complaint alleges that Visa feared that digital platforms like Apple Pay, PayPal, Square, and Cash App had 鈥渘etwork ambitions鈥� that could disintermediate the payments network. Visa saw Apple Pay, specifically, as an 鈥渆xistential threat鈥� to its debit business.

Block has a very robust Cash App, cash card program. There's almost 30 million people who have that card. It's a prepaid debit card, but they're not able to utilize the NFC technology in an Apple phone. That's a problem. That's a problem, especially when Cash App users are younger, that they have a customer base that I think is,-. Rob Rubin:.

More advanced cash management tools and better integration with third-party apps are uniquely important to these companies. Smaller FIs looking to win SMB business should prioritize offering these features and develop targeted marketing campaigns around them.

Young consumers鈥� creativity and drive are starting to pay off, and banks should act so they can leverage their growth in savings.

The wallet is pushing new features to help increase app engagement and maintain customer loyalty

Recent additions in the US include Block鈥檚 Cash App Pay, which skews heavily to millennials and Gen Zers. Providers can help increase the share of online payments that are completed. The authorization rate鈥攖he percentage of transactions that a merchant submits and is accepted by the cardholder鈥檚 bank鈥攃an be 10% lower for online transactions versus those made in person.

Registry creators can earn and redeem Kohl鈥檚 Cash coupons during designated periods, and members of the Kohl鈥檚 Rewards loyalty program can earn points daily on baby registry purchases. They also receive a 15% discount on select items that weren鈥檛 purchased.

Neobanks and banking-adjacent apps are crowding out general-purpose prepaid cards. Players like Cash App are attracting consumers who had previously relied on prepaid cards to make non-cash purchases and pay bills. 蘑菇AV 23 million US adults use digital-only banks, per our forecast.

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:.

Leading cash-back credit cards need to drive acquisition in a cutthroat segment of the card market. Our exclusive consumer survey data reveals which emerging features issuers should invest in to win over customers.

Consumers used mobile apps for 50% of all peer-to-peer (P2P) payments in 2023. This is down from 55% in 2022 but still well above the pre-pandemic 27%. The YoY decline may suggest that there is a cap for digital P2P payment growth and that consumers aren鈥檛 willing to ditch cash and checks entirely.

Cash App reported 57 million monthly transacting actives. BNPL volume from Afterpay jumped 25% to nearly $7 billion. Square gross payment volume (GPV) rose 6% to $50.46 billion鈥攁nd rocketed 23% outside of the US. Nearly one-quarter of Square鈥檚 revenues came from banking services during Q1.

Cash App can leverage parent company Block鈥檚 ecosystem to tap a unique base for growth. Cash App is the smallest of the three major P2P apps by users and volume, per our forecast. Its higher share of lower-income users versus other apps may offer it more runway for user growth.

Centralizing operations may also create more cooperation between Square and Cash App, which has reportedly been a struggle, per the Information. And it can help bring together Afterpay and Cash App, another of Block鈥檚 goals. Block isn't the only payment provider worried about costs. PayPal also hinted at layoffs in its Q3 earnings.

Block tried to shut down allegations of duplicate accounts by saying that Cash App is built to support customers with multiple accounts鈥攆or instance, separate business and personal accounts. It added that its response to measuring user numbers was 鈥渃onservative.鈥�. 鈥淢any accounts鈥� are verified.

It may also help increase Cash App adoption: We expect 47.8 million US adults will use Cash App by the end of 2022, per our forecasts. It was noticeably quieter about cryptocurrencies in the second half of 2022. Block teased several new Bitcoin services on Cash App in April, like letting users auto-invest a portion of their direct deposits into Bitcoin.

But these users are already loyal to their preferred P2P app, with the industry dominated by Venmo, PayPal, Zelle, and Cash App. And feature innovation in digital wallets is making consumers even more attached to their preferred wallet. For example, new features like PayPal鈥檚 digital smart receipts and package tracking create more use cases for the app, boosting user loyalty.

To view the full Cash App forecast, click here. Marketplace sellers are a growing $600 billion opportunity ripe for modern card issuing solutions. Marketplaces benefit from modern card issuing data insights and efficiencies. Marketplace ecommerce sales will grow at an 11.9% average annual rate between 2023 and 2027 to top $600 billion, per our forecast.