Digital wallets are becoming popular among consumers in the United Kingdom. In fact, nearly half (44%) of consumers in the country expect to continue using these wallets to carry out financial transactions in the next three years.

But these tools have the potential to allow consumers to do so much more than just make payments. Significant shares of the U.K.’s Generation Z and millennial consumers are using them to store credentials like ID cards or event tickets. PYMNTS Intelligence data shows, for example, that 71% of U.K. users are highly satisfied with their experience of using digital wallets beyond shopping. Some other use cases for the technology include for boarding passes, scanning rewards cards and storing hotel keys.

These are just some of the findings detailed in “Digital Wallets Beyond Financial Transactions: U.K. Edition,” a PYMNTS Intelligence and Google Wallet collaboration. This report examines consumer perceptions and use of these wallets in the last year and into the future in the U.K. market. It draws on insights from a survey of 2,362 consumers conducted from Jan. 11 to Feb. 5.

Inside “Digital Wallets Beyond Financial Transactions: U.K. Edition”:

• How Gen Z and millennial consumers in the U.K. lead the way in using these wallets for uses other than transactions
• How many consumers in the U.K. are using digital wallets to store non-payment credentials
• The rise of using these wallets for peer-to-peer transactions and bill splitting
• Use cases for digital wallets in the U.K. for travel and events
• Why storing identity verification credentials appeals to consumers in the U.K., particularly those from Gen Z

These wallets have the potential to replace physical wallets for storing payment methods, identification cards, transit passes and event tickets. Download the report today to learn what consumers in the U.K. are saying about the future of digital wallets.

The post New Data: Gen Z Leads the Way as Digital Wallets Surge in the UK appeared first on PYMNTS.com.

“It’ll take a long time to get institutions that adoption curve,” and for the banks connecting to FedNow to number in the thousands. 

Nonetheless, he said, “this is incredible traction, for a brand new payment network to get to that level of adoption in the span of a year.”

There’s some knowledge and insight to glean from the emergence of faster payments across the globe, particularly in Europe, and what consumers and businesses demand.

And what they’re demanding, Perlman said, “is that payments be instant, just like every other aspect of our lives.”  The sentiment echoes statements made by Mark Gould, chief payments executive for Federal Reserve Financial Services, who said, “the strong growth we’re seeing shows how financial institutions are stepping forward to meet this change in customer expectation.”

Gould’s insight, said Perlman, is “spot on,” where “everyone knows that payments are just one the latest things that are going to become real time.  Seeing the smaller institutions jump on board,” he added, “is an accurate reflection of that statement.”

Though education is still needed to illuminate new use cases and benefits of instant payments — as Perlman said, “I’m not sure that everyone is fully up to speed on what FedNow brings to the market.” Perlman noted that the gap is narrowing.

Where i2c Stands

The larger banks are already participating with FedNow, and as Perlman noted, the central bank has been focusing on recruiting community banks and credit unions (a significant client roster for i2c).  Reaching the “long tail” of FIs among smaller entities will require processors and providers to be certified with FedNow, and i2c stands in the middle of the equation, connecting the banks to those integrators and supporters of instant payment services.

In terms of easing that connectivity and integration with the new rails, Perlman said, i2c has begun the implementation process to become a certified service provider and anticipates completing the development and testing activities with the Fed through the next several weeks and months.  “The goal is to be live by the end of the year, said Perlman.

Beyond the benefits of speed, Perlman said there’s value to glean from the data accompanying the payments, standardized through ISO 20022.

“When you talk about attaching robust payment invoice and other potentially trade finance data to a transaction, that’s what really unlocks real-time payments as a valuable network for business to business transactions and,  more complicated types of payments,” he said.

Looking ahead, in the drive to move from the current 900 FIs tied to FedNow to 7,000 banks, Perlman said there will need to be a “combined effort” between the Fed and partners in the ecosystem,” such as i2c to help educate those FIs.

“We’re really excited to have the opportunity to bring real-time, interbank payment to our clients and allow them to speed up payments reconciliation and adding additional data to their transactions,” he told PYMNTS.

The post FedNow’s First Year: Path to Critical Mass Requires Time and Education appeared first on PYMNTS.com.

The partnership, announced Thursday (July 18), is designed to help the companies engage with a range of consumers, particularly in the gaming space.

“We’re continuously expanding payment options on Google Play, and adding Cash App Pay is a significant step in giving users more choice and convenience while meeting their evolving payment preferences,” Pete Albers, director of retail and payments activation for Google Play, said in a news release.

The release cites figures from the Bureau of Economic Analysis showing that $3 trillion in yearly consumer spending happens outside the traditional financial system, meaning that younger shoppers are seeking alternative payment solutions like Cash App Pay — which lets consumers pay with their Cash App balance or linked debit card — when shopping.

“Next gen shoppers are demanding more choices at checkout, and we know they’re also looking for more ways to pay with their own money. This partnership not only empowers them to pay flexibly for the things they want, but it also marries two strong customer sets and maximizes their mobile utility,” said Tanuj Parikh, head of partnerships, Cash App and Afterpay at Block.

The partnership comes as the way people choose to pay for things at checkout continues to change, as PYMNTS wrote earlier this week.

For example, digital wallets are now the fastest-growing payment option in the United States, especially among younger consumers.

“Most Americans say they use digital wallets more often than traditional payment methods,” that report said. “Even more intriguing, consumers who use this payment method tend to spend more than nonusers. According to a new Worldpay report, the payment method will overtake debit cards in transaction value in North America for in-store payments by 2027.”

The popularity and payment values of these wallets make them a priority tool for businesses to integrate into their payment suites. Still, merchants have some catching up to do to keep up with this ongoing trend.

“Some notable stumbling blocks — including perceptions about security, complexity and legacy technology — are still holding many back,” PYMNTS wrote.

The news came the same day that Cash App said it was shutting down its U.K. business in mid-September, as it makes the U.S. a greater priority.

The post Cash App Integrates With Google Play to Attract Gamers appeared first on PYMNTS.com.

This digital revolution is primarily driven by changing demographics and consumer expectations. As One Inc CEO Ian Drysdale told Karen Webster for the latest installment of the “What’s Next In Payments” series, while baby boomers retire and millennials become the largest segment of society, insurance companies are grappling with how to serve a new generation of customers who expect seamless digital experiences.

“We’re seeing the digitalization of insurance with a Gen Z and millennial focus. Everything being online — not only premiums, which might be a little bit more obvious, but also claims where we can close a claim completely over text message,” Drysdale said.

One Inc helps carriers transform their operations through reducing costs, increasing security and optimizing customer experience by digitizing their processes, payments and disbursements. The push toward digitization isn’t merely about meeting consumer preferences; it’s also a response to economic pressures. Drysdale said that the insurance industry is grappling with inflation rates far exceeding the general economy, with costs rising between 20% to 30% in some areas.

“A lot of insurers are losing a lot of money because they’re paying out more in claims than they’re getting in premiums,” Drysdale said. “As a result, they’re under huge economic pressure and are looking for efficiencies.”

These efficiencies are being found in the digitization of payments and claims processes. Drysdale cited examples of significant cost savings achieved through digital transformation.

“Working with one of the largest life insurers that we all know really well, they saw reduced administrative costs by 20%,” he said. “We’re talking to insurers who, with our ClaimsPay solution, are saving $5, $10, $20 million a year because they’re not killing trees, sending out envelopes with checks that get lost or can be defrauded.”

The scale of potential savings is immense. According to Drysdale, some in the industry believe there are between $250 and $500 billion in checks still being written in the insurance industry.

Instant Payments: The New Frontier

One of the most significant shifts in the industry is the move toward instant payments. Drysdale explained that insurers are embracing technologies like RTP, FedNow and push-to-debit to provide immediate payouts to policyholders.

“They are looking for anything that allows them to pay you at the moment of truth, which is when you’re on with a claims adjuster, you’re in trouble,” Drysdale said. “Maybe it’s after a storm or after an accident. They’re like, ‘Can we send you $5,000 right now?’ And your phone buzzes with the deposit before you’re even off the phone with that insurance company.”

This shift toward real-time, app-based interactions is not only improving customer satisfaction but also driving business results. Drysdale reported, “We’re seeing 25% increased retention rates from insurers that are digitally interacting with customers. We’re seeing Net Promoter Scores jump by 10 points, and customer satisfaction scores go up by 18% because of a fully-digital world.”

The Role of AI in Reshaping Insurance

Artificial intelligence, particularly generative AI, is set to play a crucial role in the future of insurance. Drysdale predicts that AI will be used to personalize premiums and assess risk at an individual level.

“You can bet any amount of money that over time the internet will be searched to see if you like to jump out of planes, or if you do what I did years ago and you go backcountry skiing or heli-skiing … anything that you do is ultimately going to get priced into your insurance policy,” Drysdale said.

However, he also sees potential benefits for policyholders: “There will be a lot of costs taken out of the insurance industry because the gen AI will be processing all of the different information. And it will be coming up with a fair rate without humans being involved.”

Looking Ahead

As the industry moves towards the halfway point of the decade, Drysdale sees a clear direction for the future of insurance. “We’re seeing a real shift toward app-based, real-time, less paperwork, kind of embracing a future of immediate results and immediate benefit in insurance and getting away from the olden days of waiting weeks and weeks and weeks for everything regarding insurance,” he said.

This shift is not just about technology, but about survival in a changing market. As Drysdale puts it, “The survivors are going to be with that up-to-date culture and get away from the insurance of old.”

As these technologies continue to evolve and mature, Drysdale expects them to deliver not only cost savings and efficiencies for insurers but also improved experiences and fairer pricing for policyholders. The challenge for industry players, he said, will be to navigate this digital revolution while maintaining the trust and security that are fundamental to the customer experience.

The post Insurance Industry $500 Billion Digital Shift Driven by Gen Z Expectations appeared first on PYMNTS.com.

The company has added FASTag, direct-to-home recharges, landline, broadband and mobile prepaid bill payments to its app, Flipkart said in a Wednesday (July 10) press release.

The new recharge and bill payment categories join the electricity and mobile prepaid recharge options already available on the app, according to the release.

The move is meant to bring continuing innovation to customers and create a one-stop shop that meets their needs, Gaurav Arora, vice president of payments and SuperCoins at Flipkart, said in the release.

“With a rapid surge in the digital payments industry, customers are increasingly opting for electronic mode for paying their bills,” Arora said. “We have diversified our selection of services in line with Flipkart’s vision to simplify the digital payments journey for customers and further the government’s vision of a cashless economy.”

To help integrate the new services with the Bharat Bill Payments System (BBPS) developed by the National Payments Corporation of India, Flipkart partnered with payment solutions company BillDesk, per the release.

Ajay Kaushal, co-founder and director of BillDesk, said in the release: “This strategic expansion allows Flipkart customers to experience seamless bill payments, receive timely notifications and check amounts due across their preferred billers, leveraging BBPS capabilities.”

In another product introduction, Flipkart said in June that it launched a Unified Payments Interface (UPI) payment app dubbed super.money that offers up to 5% back on purchases.

The app also offers “credit cards that improve your credit” and “personal loans that won’t take multiple red tape to get,” super.money said.

In March, Flipkart launched a UPI handle to enhance its digital payment offerings by adding the instant payments system. The company said at the time that the Flipkart UPI allows users to set up their own UPI handle for transactions, both online and offline, and both within and outside the Flipkart marketplace.

Dheeraj Aneja, senior vice president of FinTech and Payments Group at Flipkart, said at the time that “Flipkart UPI underscores our dedication to shaping a digitally empowered society and reaffirms our role as a leading catalyst in India’s digital evolution.”

The post Flipkart Adds New Bill Pay, Recharge Options to eCommerce Platform appeared first on PYMNTS.com.

The collaboration, announced Wednesday (July 10), is designed to promote financial inclusion in Africa, the companies said in a news release provided to PYMNTS.

That means enza—with offices in South Africa and Egypt—can harness TerraPay’s connectivity to more than 2.1 billion mobile wallets, allowing for the acceptance of those wallets along with other domestic and international payment brands.

The partnership also aims to simplify cross-border payments for African businesses by leveraging TerraPay’s access to more than 7.5 billion bank accounts, upwards of 2 billion wallets, and over 6 million cards worldwide.

“Enza is delighted to be able to incorporate TerraPay’s capabilities into our propositions being delivered to many of Africa’s leading banks,” said Andrew Key, the company’s executive director. “We are particularly excited about the role the partnership will play in transforming the experience of businesses across Africa, bringing many of them into the formal financial ecosystem for the first time.”

PYMNTS spoke recently with TerraPay President Ruben Salazar Genovez about digital payments engagement in another part of the world: Brazil. 

With the rise of what he called “device dependency,” consumers, two-thirds of whom own smartphones, have begun to demand that everything be done online and in real time.

“The developer community knows about these traits, and they continue to create apps that we did not know we needed … until we start using them,” Genovez told PYMNTS Karen Webster as part of a panel discussion tied to the recent “How the World Does Digital” report.

The advent of Pix, an instant-payment app launched by the Brazilian central bank in 2023, was a force that “lit up” Brazil, Genovez added.

“In many ways, Pix is the enabler for this impressive digital adoption in Brazil,” he said. “The gig economy, content creators, gaming, streaming services like Netflix or marketplaces like Mercado Libre, all of them need efficient payment infrastructure. So Pix is the backbone of this digital adoption in Brazil today.”

Also this week, PYMNTS examined the rise of digital wallets, noting that while they are gaining traction for features besides making purchases, transactions are still the most common use of this technology.

Research by PYMNTS Intelligence and Google Wallet found that 41% of consumers said they would likely use digital wallets to conduct financial transactions in the next year, slightly ahead of the 40% that said the same thing about storing and accessing payment methods.

The post TerraPay and Africa’s enza Form Cross-Border Payments Partnership appeared first on PYMNTS.com.

In the United States, digital wallets can be anywhere a smartphone is. In other words, everywhere. Many U.S. consumers are embracing digital wallets, particularly for online shopping. In fact, data shows consumers are 23% more likely to use them for online shopping than in-store purchases. Beyond shopping, PYMNTS Intelligence finds that digital wallets are popular for peer-to-peer payments.

Yet, despite a reputation for tech-savviness, most U.S. consumers are unfamiliar with all these tools could offer. For example, just 8.7% of consumers have used one to store nontransactional credentials. Even fewer have used one of the credentials they have stored.

These are just some of the findings detailed in “Digital Wallets Beyond Financial Transactions: U.S. Edition,” a PYMNTS Intelligence and Google Wallet collaboration. This report examines consumer perceptions and use of digital wallets in the last year and into the future in the U.S. market. It draws on insights from a survey of 2,169 consumers conducted from Jan. 11 to Feb. 5.

Other key findings in the report include:

Most U.S. consumers are unfamiliar with using digital wallets for anything beyond transactions.

Nontransactional applications include accessing events, but data reveals just 3.4% of U.S. consumers have used a digital wallet in this way. Other uses are similarly underutilized, with just 2.9% using one to access a rewards program. The most common nontransactional use is for travel and transportation, but even there, only 4.1% have used those features. The report details how this usage varies by wallet provider.

A solution that could simplify the identification process.

Proving your identity is a part of everyday life, from the bank to the airline gate. Most U.S. consumers had reason to verify their identity in the last year, and most consumers carry their phones everywhere. It is only natural, then, that many consumers anticipate they’ll be able to use a digital wallet to verify their identity in the next three years.

Consumers in the U.S. are missing out on the vast potential of this technology, as they mostly use it to make purchases or peer-to-peer payments. Download the report to learn more about digital wallets’ nontransactional features.

The post Do US Consumers Underestimate the Potential Of Digital Wallets? appeared first on PYMNTS.com.

With the new Elavon Cloud Payments Interface, these businesses can embed payments and allow guests to pay anywhere, at any time, the payments processor said in a Tuesday (June 25) press release.

“This system cuts the cord and enables a smoother experience by enabling guests to charge for meals and services wherever they are,” Pari Sawant, global chief product officer at Elavon, said in the release.

For hospitality businesses in the United States, Canada and the Caribbean, the new API scales payments, supports third-party payments providers and remains PCI compliant, according to the release.

The solution allows these businesses to easily add new locations and devices, benefit from fraud protection capabilities, and remain up to date on features and patches via automatic software updates, per the release.

“Elavon Cloud Payments Interface helps continue digital transformation across the hospitality industry by enhancing guest experiences, streamlining operations and providing real-time safe and secure data synchronization,” Sawant said in the release. “This lets us focus on the payment and allows our merchants to focus on delivering exceptional service.”

PYMNTS Intelligence has found that customers are hungry for digital experiences when they travel. For example, 73% of consumers want to use their mobile phones for functionalities such as checking in to hotels, paying and ordering food, according to the PYMNTS Intelligence and LS Retail collaboration, “Can Automation Solve Labor Shortages in the Hospitality Sector?”

In another recent product launch in this sector, Sabre Hospitality said Monday (June 24) that it expanded the offer and fulfillment options it provides to hotels. The company’s retailing solution now allows hoteliers to sell experiences, services and goods without a room reservation. Later this summer, it will also integrate automated fulfillment.

On June 18, Otelier launched a product that automates accounts payable (AP) workflows for hotel operators, saying it streamlines back-office operations by eliminating time spent processing invoices and cutting checks to suppliers. The new DigiPay product helps hoteliers’ AP teams verify invoice accuracy, streamline workflows and automatically direct invoices to the proper stakeholders.

The post Elavon Introduces Embedded Payments Solution for Hotels, Hospitality-Related Businesses appeared first on PYMNTS.com.

Generation Z consumers in particular are making the most use of these wallets. These consumers store payment information and IDs or access information in the wallets. In fact, 10% of Gen Z say they rarely or never carry a physical wallet anymore.

These are just some of the findings detailed in “Digital Wallets Beyond Financial Transactions: A Global Perspective,” a PYMNTS Intelligence and Google Wallet collaboration. This report examines consumer perceptions and use of digital wallets in five key markets: Brazil, France, Germany, the U.K. and the U.S. It draws on insights from a survey of 12,299 consumers conducted from Jan. 11 to Feb. 5, 2024.

Other key findings in the report include:

Convenience and rapid processing drive satisfaction with using digital wallets for verification or access.

Consumers say the easy access and rapid processing when they use digital wallets for access or verification is impressive. Across the five countries studied, 74% of consumers who use these wallets for these nontransactional purposes show high satisfaction. Those using government-based apps for storing IDs are least likely to be satisfied.

Gen Z sets an example by using credentials stored in digital wallets more frequently.

PYMNTS Intelligence finds a usage gap. While 20% of consumers worldwide have stored credentials, only 8% actually used stored credentials in the last year. Among Gen Z consumers who use digital wallets, however, 11% used their stored credentials. This may explain why Gen Z consumers are the most likely to leave their physical wallets behind altogether.

Many users cite internet connectivity issues as an issue in nontransactional activities.

One consistent hiccup digital wallet users experience is lack of internet access. Many consumers (26%) report internet issues hindered their ability to use the apps. This is a particularly significant problem in Brazil, which leads in adoption. Despite this, significant shares of consumers prefer them for verifying their identities online.

The role of this technology in consumer’s lives is evolving. Consumers who use them report high levels of satisfaction, but providers need to continue to innovate and reduce frictions. Download the report to learn what digital wallet usage in Brazil, Germany, France, the U.K. and the U.S. reveals about what the future holds.

The post New Report: What’s in Gen Z’s Mobile Wallet? appeared first on PYMNTS.com.

The FinTech made up 8.1% of total UPI transactions last month, down from 13% in January, the National Payments Corporation of India said in data released Thursday (June 6).

Paytm accounted for 1.1 billion customer-initiated transactions on the network. That put the company in third place between the Walmart-backed PhonePe (6.8 billion) and Google Pay (5.2 billion), whose share of the market continues to climb.

The company has been struggling since January, when India’s banking regulator suspended business at Paytm Payments Bank — which had processed much of Paytm’s payments — after an audit uncovered “persistent noncompliances and continued material supervisory concerns.”

The move by the Reserve Bank of India (RBI) followed two years of warnings about the questionable relationship between Paytm and its banking arm.

Later reports said the RBI came to this decision after the audit found money and data traffic flow between Paytm Payments Bank and its parent company that sparked accounting and supervisory problems. The regulator also warned of possible conflicts of interest, with the same executives making decisions at both Paytm and Paytm Payments Bank.

The news comes weeks after reports that Indian conglomerate Adani was in talks to enter the eCommerce and payments space.

The company is considering applying for a license to take part in the UPI network, the Financial Times reported last week.

Adani is also in discussions with banks to finalize plans for a co-branded credit card and negotiating to offer online shopping via India’s state-supported eCommerce platform, the Open Network for Digital Commerce, that report said.

“There are just three business conglomerates running this country — the Tatas, the Ambanis and the Adanis,” Jayanth Kolla, a Bengaluru-based technology analyst, told the British newspaper. “Adani is the one of the three groups which does not have significant consumer-facing businesses.”

Companies like Paytm, Adani, Google and PhonePe are all vying for consumer attention in a country that has been on a “digital payments journey” for the last 15 years, as PYMNTS wrote in late 2023.

PYMNTS Intelligence research has shown that digital wallets are now the preferred payment method for more than half of retail purchases in India, with 80% of digital wallet users opting for UPI.

The post Paytm Continues to Lose Digital Payments Ground to Google and Walmart appeared first on PYMNTS.com.