Visa Consulting & Analytics’ 2024 white paper on digital wallets examines their rapid growth, especially in CEMEA, where wallets account for nearly half of e-commerce payments. Despite scale, profitability remains elusive as many wallets operate at a loss due to high transaction and customer acquisition costs. VCA identifies two viable paths to success: becoming a niche payment specialist, like PayPal or Cash App, or evolving into a full-service digital bank, expanding into lending, cards, and savings. Seven success factors are highlighted, including clear strategy, monetization roadmaps, strong ecosystems, balanced free/paid services, viral adoption hooks, incentivized behaviors, and efficient tech infrastructure.

Join for free to read