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The rule, which regulates payment apps like banks, is already on shaky ground given the CFPB is about to be overhauled under Trump

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.

Digital wallets are solving this with passwordless checkout, which will likely become the industry norm

Digital wallets鈥� transformation into commerce enablers speeds up. We make a case for digital-only consumer credit cards. And we see a new threat that BNPL poses to credit cards.

Marqeta Flex helps digital wallets and card issuers embed BNPL options, eliminating the need for direct integrations with merchants

Digital wallets are gaining share of retail transactions in the UK. Retailers that don鈥檛 accept them risk losing sales.

Fintechs, banks, and the government will reshuffle the payments deck in 2024. New features and competition will redefine the digital wallet user experience, and FedNow will pivot payment flows in new directions.

PayPal is the most popular mobile payment app that US adults typically use, with over twice as many users as the next most popular choice, Venmo, according to November 2024 data from YouGov.

A rewards integration coming later this year could make Synchrony a more attractive co-brand partner

Gen Z is the first mobile payments-native generation. By 2028, 67.8% of US adults will be mobile wallet users, per our forecast. Gen Zers are already way ahead: 85.1% made an in-store or online payment using their phone in 2023, according to Federal Reserve Bank of Atlanta.

Dramatic shifts are in the works for 2024, as BaaS, social media players, genAI, and new digital wallets reshape the banking landscape. Our top trends explore what鈥檚 in store.

The Vipps wallet in Norway is the first to use Apple鈥檚 NFC tech, opening the floodgates for more to deploy the tech.

And it could have pushed consumers to use an alternative digital wallet like Shop Pay or Cash App Pay to check out online. If consumers had a good experience with these other wallets, they may also be more willing to use them in the future, affecting PayPal鈥檚 future volume.

The digital wallet added Afterpay and will soon add Klarna. Google Pay already has tie-ups with Affirm and Zip. Expanded virtual cards. Google Pay will now let Discover cardholders in the US set up and pay with a virtual card from their Chrome or Android device. This feature was already available to American Express, Capital One, and Citi cardholders. Added fraud protections.

Our take: There has been a frenzy of feature innovation in digital wallets as they try to expand beyond payments into everyday commerce enablers. Adding new features like Pool Money is therefore crucial for PayPal to stay competitive and maintain customer loyalty in the highly saturated market. We expect PayPal to have 217.3 million core users worldwide in 2025.

Financial institutions (FIs) will burst through the financial media network (FMN) door first cracked open in 2024. Chase made headlines in April by announcing its new ad business, followed by PayPal in May. They鈥檙e the most high-profile FIs to do so yet, signaling that FMNs could be a meaningful new revenue stream for the financial services industry.

Major payment players like PayPal and Visa that invested in them are likely celebrating this regulatory movement

The company is shifting its strategies to achieve greater profitability, but investors still aren鈥檛 impressed

Western Union has become the latest financial company to launch a media network, joining the likes of Chase and PayPal. 鈥淭he biggest advantage [financial media networks] have is just breadth. So, unlike a retail media network, they capture the entire spending history that a customer has,鈥� said our analyst Maria Elm on an episode of our Behind the Numbers podcast.

Apple will soon open up its near-field communication (NFC) tech to third-party digital wallets in the US and will let iPhone users choose their default contactless payments app.