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Feature innovation is transforming digital wallets into everyday commerce enablers.

Consumers will use proximity payments more often as they adopt additional digital wallet features. Annual mobile proximity spend per user will grow at a 12.4% average annual rate from 2024 to 2028. Providers are equipping mobile wallets with a broadening array of features that give consumers more reasons to use—and spend with—their digital wallets.

PayPal Ads offers unique ad targeting via transaction data: Access to PayPal’s 400 million users aims to transform digital advertising for small and medium-sized businesses.

B2B payments are fast becoming the biggest opportunity for stablecoins to gain traction—now PayPal has to convince everyone else.

The fintech’s push is part of a larger trend of US payment firms looking to capitalize on the massive growth opportunity in China

The integration is a win for PayPal after Amazon stopped accepting Venmo on its ecommerce site

Mobile P2P payments are struggling to capture users in Canada. But banks and digital wallet providers can lean into their respective strengths to create a rosier outlook for growth.

The actor’s appeal across generations can help attract users for the company’s debit card and in-store offerings

UK mobile P2P payments usage growth has a case of the doldrums—but bank and digital wallet providers can explore several options to give it a boost.

The BNPL provider expanded its merchant network and pushed in-store. A potential Apple Pay deal could help raise its profile

American Express is expanding Amex Offers, which allows advertisers to serve card holders tailored deals. The expansion comes on the heels of Chase and PayPal launching financial media networks (FMNs), a trend we expect will continue.

Feature innovation transforming digital wallets into everyday commerce enablers. Paze putting open-loop digital wallet leaders on notice. FedNow taking a bite out of bill pay. Physical consumer credit cards starting to disappear. Credit cards responding to the BNPL subscription rewards threat. Here’s how we did:.

But it’s unclear how its new agenda will shake out—and how many of the agency’s rules that recently went into effect, such as regulating digital wallets like banks—will survive.

Our take: Paze could transform the digital wallet industry—but not for some time given its slow merchant rollout. Still, other wallets like Apple Pay and PayPal will need to prepare for Paze’s influence. They can do so by investing in some of Paze’s innovative features, like payment method optimization.

This enables third-party digital wallets like Google Wallet to offer in-app contactless transactions for in-store payments. Apple will also let users switch their default contactless app. Access became available with the release of Apple’s iOS 18.1 update in October.

By the numbers: Remittance recipients rely on both digital and in-person avenues to collect their money. 44% of remittance senders said their friends or family receive transfers directly to a bank account, per a MoneyGram survey conducted in June 2024. 38% said they receive the money in an app or digital wallet. And 38% said they receive the remittance at a walk-in location.

Digital wallets and other payment apps that handle more than 50 million transactions per year will be subject to the new rule. This will include Apple Pay, Google Wallet, PayPal, and Cash App, among others.

Fellow digital wallets Apple Pay (used by 16.4% of respondents) and Google Pay (9.6%) fell far behind. Gen Z expects Apple Pay at checkout. Gen Zers’ payment preferences differ from those of older consumers. One of the biggest distinctions is their love of Apple Pay.

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.