The European digital payment wallet ecosystem: key characteristics and insights PDF Free Download
1 / 78/78
100%
The European digital payment
wallet ecosystem: key
characteristics and insights
TESI DI LAUREA MAGISTRALE IN
MANAGEMENT ENGINEERING
INGEGNERIA GESTIONALE
Authors: Alina Akulova and Tatiana Eremeeva
Student ID: Akulova Alina 10880136
Student ID: Tatiana Eremeeva 10894180
Advisor: Alessandro Perego
Academic Year: 2024-25
2
3
Abstract
Digital wallets are among the fastest-growing payment instruments in the fintech
industry, driven by technological advancements, increasing consumer demand for secure
and seamless transactions, and the rise of mobile connectivity worldwide. This thesis
explores the characteristics and adaptation of digital wallets within the European payment
ecosystem, focusing on payment functionalities, technologies, identity verification, and
funding methods across different wallet types. The study analyzes census data collected
from 73 digital wallets operating in Europe, based on selected variables, to provide insights
into the European digital wallet landscape. The findings of this study demonstrate that
digital wallets have evolved far beyond their original purpose as simple payment
facilitators. Today, they serve as multifunctional financial platforms, integrating a wide
range of services that enhance user convenience, security, and financial management
capabilities. One of the interesting findings of this study is the heterogeneity of digital
wallets across Europe. While global wallets dominate the market due to their wide reach
and seamless integration with existing financial infrastructures, regional and local wallets
continue to thrive given specific user preferences, regulatory requirements, and leveraging
local partnerships. As digital payments continue to gain traction, digital wallets will play a
central role in shaping the future of cashless economies, financial inclusion, and secure
digital transactions across Europe. The coming years will witness the convergence of digital
identity, embedded finance, open banking, and Artificial Intelligence, driving the next wave
of innovation in digital wallets.
Key-words: digital wallets, staged wallets, pass-through wallets, P2P transfers, NFC.
|Introduction
4
Abstract in Italian
I digital wallet sono uno degli strumenti di pagamento in più rapida crescita nel
settore fintech, alimentati dai progressi tecnologici, dalla crescente domanda dei
consumatori di transazioni sicure e senza interruzioni e dall'aumento della connettività
mobile a livello globale. Questa tesi esplora le caratteristiche e l'adattamento dei digital
wallet all'interno dell'ecosistema dei pagamenti europeo, con un focus su funzionalità di
pagamento, tecnologie, verifica dell'identità e metodi di ricarica tra i diversi tipi di walleti.
Lo studio analizza i dati raccolti dal censimento di 73 digital wallet attivi in Europa,
analizzando alcune variabili per fornire spunti sul panorama dei digital wallet attivi in
Europa. I risultati di questo studio dimostrano che i digital wallet si sono evoluti ben oltre
il loro scopo originale di semplici strumenti di pagamento. Oggi, essi fungono da
piattaforme finanziarie multifunzione, integrando una vasta gamma di servizi che
migliorano la convenienza, la sicurezza e le capacità di gestione finanziaria degli utenti. Uno
degli aspetti più interessanti di questo studio è l'eterogeneità dei digital wallet in Europa.
Mentre i wallet attivi a livello globale dominano il mercato grazie alla loro ampia diffusione
e integrazione con le infrastrutture finanziarie esistenti, i wallet regionali e locali continuano
a prosperare grazie a specifiche preferenze degli utenti, al rispetto dei requisiti normativi e
sfruttando partnership locali. Man mano che i pagamenti digitali guadagnano sempre più
terreno, i digital wallet giocheranno un ruolo centrale nel plasmare il futuro delle economie
cashless, dell'inclusione finanziaria e della sicurezza delle transazioni digitali in tutta
Europa. Negli anni a venire, assisteremo anche alla convergenza dell'identità digitale,
dell’embedded finance, dell'open banking e dell’intelligenza artificiale, che guideranno la
prossima ondata di innovazioni nei digital wallet.
Parole chiave: digital wallets, staged wallets, pass-through wallets, trasferimenti P2P, NFC.
5
Contents
Abstract ............................................................................................................................ 3
Abstract in Italian ........................................................................................................... 4
Introduction ..................................................................................................................... 7
1 Chapter one: Overview of digital wallets .............................................................. 10
1.1 Definition of digital wallets and their evolution ............................................... 10
1.2 Overview of digital wallets: global trends vs. European market .................... 11
1.3 Super-apps ............................................................................................................... 17
2 Chapter two: Literature review ............................................................................... 18
2.1 Key features of digital wallets .............................................................................. 18
2.2 Types of digital wallets .......................................................................................... 23
2.3 Regulatory landscape in Europe .......................................................................... 29
2.5 The importance of digital identification and development EUDI wallet ...... 32
3 Chapter three: Research methodology ................................................................... 37
3.1 Research design and approach ............................................................................. 37
3.2 Summary of analyzed variables ........................................................................... 38
3.3 Steps performed ...................................................................................................... 42
4 Chapter four: Analysis & Results ............................................................................ 44
4.1 Analysis techniques ............................................................................................... 44
4.2 Analysis of types of wallets .................................................................................. 47
4.3 Analysis of top-up methods of staged digital wallets ...................................... 49
4.4 Analysis of types of verification ........................................................................... 51
4.5 Analysis of P2P transactions ................................................................................. 52
4.6 Analysis of additional services in digital wallets .............................................. 53
4.7 Analysis of payment technologies in digital wallets ......................................... 55
4.8 Analyses of online payments feature .................................................................. 56
4.9 Intercountry availability ........................................................................................ 57
4.10 Future trends ......................................................................................................... 60
5 Chapter five: Conclusions ........................................................................................ 63
|Introduction
6
5.1 Key findings and conclusions ............................................................................... 63
5.2 Limitations of the study ........................................................................................ 68
5.3 Suggestions for future development ................................................................... 69
Bibliography .................................................................................................................. 71
List of figures ................................................................................................................ 76
List of tables .................................................................................................................. 77
Acknowledgments ....................................................................................................... 78
|Introduction
7
Introduction
This thesis investigates the characteristics and role of digital wallets within the
European payment ecosystem, focusing on payment functionalities, underlying
technologies, identity verification methods, and funding mechanisms across various wallet
types. It also aims to identify the features that distinguish the most innovative digital
payment solutions. The thesis is structured into four chapters and a conclusion part.
Chapter One delves into the introduction and evolution of digital wallets, exploring
their significant rise within the global fintech industry. This chapter examines the factors
that have contributed to the rapid growth and adoption of digital wallets, from
technological advancements to changing consumer behaviors and increasing demand for
secure, seamless payment methods. The chapter also identifies the emergence of super apps,
which have integrated multiple services, including digital wallets, into a single platform,
further driving the evolution of the payment ecosystem.
Chapter Two is intended for a comprehensive literature review, focusing on the key
features of digital wallets, their types, and the regulatory landscape in Europe, as well as
the growing importance of digital identification in the digital payment ecosystem. The
chapter provides comprehensive information on the key features of digital wallets,
including their accessibility, functionality, storage types, and compatible devices. These
features are essential for understanding how digital wallets are designed to meet consumer
needs, improve convenience, and offer flexibility in managing financial transactions. The
chapter categorizes digital wallets into various types depending on the purpose of use,
technical functionality and accessibility. It also explores the growing trend of multi-currency
wallets, which enable users to manage a variety of currencies in a single platform,
facilitating cross-border payments and exchange. In addition to the functionality of digital
wallets, the chapter compares global digital wallet trends with those specific to the
European market. The regulatory environment is a critical element of the digital wallet
ecosystem, and this chapter delves into the European regulatory landscape, focusing on key
regulations such as PSD2/3, GDPR, and the EUDI Wallet framework. PSD2/3 has
significantly impacted the payment services industry by encouraging innovation and
increasing security in electronic payments, while the GDPR addresses data protection and
privacy concerns, ensuring that consumer data is handled securely. Finally, the chapter
|Introduction
8
highlights the growing importance of digital identification in the context of digital wallets,
with particular emphasis on the EUDI Wallet. The development of the EUDI Wallet is
positioned as a key initiative by the European Union to create a unified, secure, and
interoperable digital identity framework. This system is expected to improve cross-border
identity verification, enhance security, and contribute to the establishment of a trusted
digital economy across Europe. By integrating digital identity verification with digital
wallet functionalities, the EUDI Wallet aims to simplify online transactions, foster financial
inclusion, and support the broader digital economy, positioning the European Union as a
global leader in digital identity and payment systems.
Chapter Three outlines the research methodology used to examine digital wallets
within the European context, employing a mixed-method approach. The research design
was structured in two distinct phases: the first involved an analysis of the top 10 global
digital wallets, while the second focused on a country-specific investigation of digital
wallets in Europe, encompassing both widely used and localized solutions. To gain a
comprehensive understanding of the digital wallet landscape, a census of digital wallets
operating across Europe was created. This involved collecting detailed data on their key
features, functionalities, and market characteristics. The data collection process integrated
both secondary data from existing literature and primary data sourced from publicly
available resources, such as official websites, mobile applications, regulatory documents,
and market research reports. The chapter also presents an in-depth explanation of the
variables utilized to assess digital wallets, outlining the criteria used to evaluate their
functionality, security measures, regulatory compliance, and user preferences.
Furthermore, the assessment methods employed to analyze these variables are detailed,
along with the assumptions made during the research process. This chapter provides a clear
framework for understanding the methodology behind the study, ensuring transparency
and rigor in the analysis of digital wallets in Europe.
Chapter Four presents the results of analysis of 73 digital wallets, focusing on the
selected variables. Descriptive analysis was conducted to summarize and interpret patterns,
trends, and comparisons within the dataset. Key features were identified, categorized by
functionality, and analyzed to reveal prevailing market trends. A percentage-based
approach measured the prevalence of each feature, facilitating comparative analysis and
trend evaluation. The analysis was structured around eight key dimensions aligned with
the research questions: comparing the demand for staged versus pass-through wallets in
Europe; analyzing user preferences for funding; examining the role of digital wallets in
facilitating peer-to-peer money transfers and their impact on adoption rates across
European markets; evaluating the adoption of NFC, QR codes, and other digital payment
methods across wallet types, assessing digital wallets' role in online purchases and their
|Introduction
9
alignment with emerging consumer trends; identifying factors influencing the expansion of
digital wallets across multiple European markets versus localized adoption; analyzing the
types of ID verification and authentication processes used; and investigating additional
financial services such as bill payments, ATM withdrawals, savings, investments, and
cryptocurrency support. The findings indicate that digital wallets, particularly staged
wallets, are emerging as viable alternatives to traditional banks and payment cards. The
chapter also explores future trends in digital wallet development, including advanced
payment technologies, AI-driven personalization, expanded financial services, and
evolving regulatory landscapes, projecting a promising future for digital wallets in Europe.
Chapter Five marks the conclusion of this thesis, bringing together the key findings
from the research and offering a comprehensive overview of the study’s outcomes. This
chapter highlights the most significant insights into the evolving role of digital wallets
within the European financial landscape, with a particular focus on their key features and
adaptation across Europe.
Drawing from the in-depth analysis conducted throughout the thesis, this chapter
reflects on the implications of the findings, while also addressing the limitations of the
study, recognizing any factors that may have influenced the research results. Additionally,
it offers suggestions for future development, pinpointing areas where further investigation
could enhance our understanding of digital wallets and their continued evolution in the
fintech industry. By synthesizing the research insights, this chapter provides valuable
perspectives for digital wallet providers, policymakers, and consumers, enabling them to
navigate the complexities of the rapidly evolving digital payment landscape and make
informed decisions for the future.
1|Chapter one
10
1 Chapter one: Overview of digital wallets
1.1 Definition of digital wallets and their evolution
A digital wallet (or electronic wallet) is a software-based system or an application that
runs on any connected device. It stores your payment information and passwords of
numerous payment methods and websites. Digital wallets run primarily on mobile devices
but may be accessible from a computer - mobile wallets, which are a subset, are primarily
used on mobile devices [1].
Digital wallets represent one of the most rapidly evolving areas within the financial
technology landscape. Their growth is fueled by technological advancements, increased
consumer demand for secure and seamless transactions, and the rise of mobile connectivity
across the globe. According to report from Visa “Decoding the European Mobile Wallet
Evolution” (2023), over the past few years, Europe has seen a rapid increase in internet access
and mobile connectivity, with more people than ever using smartphones in their daily lives.
This shift, along with supportive government policies, has helped digital payment options
spread across the region. As a result, digital wallets are poised to transform payment
systems through the adoption of innovative technologies such as Near Field Communication
(NFC), blockchain, and biometric authentication. This literature review explores the
evolution of digital wallets, their underlying technologies, biometric security features,
cryptocurrency integration, and the significance of this trend within the wider context of
payment systems.
The concept of digital wallets emerged over 25 years ago when Coca-Cola installed a
few vending machines in Helsinki in 1997 where customers paid for a soft drink via text
message on their mobile phones [2]. Two years later, in 1999, PayPal launched its electronic
money transfer services. Fast forward over a decade, the mobile wallet landscape
experienced a significant shift with the emergence of Google Pay in 2011, which served as a
pivotal moment. This was followed by the launch of Apple Pay in 2014 and Samsung Pay in
2015, further propelling the evolution of mobile wallets. The rise of domestic wallets began
in 2015 when Vipps was launched in Norway, along with Blik in Poland and Twint in
Switzerland.
1|Chapter one
11
Figure 1.1: Evolution of digital wallets
Initially, mobile wallet adoption faced some significant challenges, including low
levels of acceptance, restricted connectivity and evolving regulatory challenges. However, in
the past three years the rapid growth of smartphones and continuous advancements in
mobile and payment technologies have fuelled the widespread adoption of mobile wallets
among merchants and consumers. Furthermore, the covid-19 pandemic accelerated mobile
wallet usage across Europe, as consumers moved away from traditional physical payment
methods like cash and chip and pin to adopting non-physical digital payments. It is projected
that digital wallets will account for just over half (52.5%) of e-commerce transactions globally
by 2025 [2].
Understanding digital wallets is critical to assessing the future of financial inclusion,
payment systems, and digital identities. With digital wallets reshaping the payment
landscape, research on their influence can offer insights into how financial access, security,
and transaction efficiency are evolving globally. As noted by the World Bank Annual Report
- 2024, digital wallets play a pivotal role in enhancing financial access, especially for
underbanked populations [3].
1.2 Overview of digital wallets: global trends vs. European
market
The adoption of digital wallets has brought about a revolutionary transformation in
the global payments industry. These sophisticated payment methods offer consumers the
ability to securely store and employ their credit and debit card information, along with
12
1|Chapter one
various other modes of payment, electronically. The result has been a significant surge in the
number of consumers relying on digital wallets for their daily transactions.
Based on Research from “MAXIMIZE MARKET RESEARCH PVT. LTD” (2024) Digital
Wallet Market size was valued at USD 1.57 Bn in 2023 and the total revenue is expected to
grow at 14.8% through 2024 to 2030, reaching USD 4.14 Bn [4].
Figure 1.2: Digital wallets market share, by region in 2023 (%)
Digital wallets are the most widely used payment method in North America. In 2024,
digital wallets had a 43% share of turnover, according to Worldpay Global Payments Report
2024 [5], and that figure is projected to reach 51% by 2027. According to the firm’s analysis,
regional spending on digital wallets has been influenced largely by the card transaction
model in wallets such as Apple Pay, Google Pay, PayPal, Venmo. In part, the use of these
kinds of wallets will cannibalize direct card use.
In the mobile wallet landscape across Asia Pacific, the dominant players exist within
the 2 biggest economies - China and India. Digital wallets like Alipay and WeChat Pay have
the most used ones. Alipay, developed by Alibaba Group, stands as one of the most widely
used digital wallets in China, enabling users to make both online and in-store payments, as
well as transfer money to other individuals [5]. Similarly, WeChat Pay, integrated into the
WeChat messaging app and developed by Tencent, allows users to send payments, transfer
funds, and settle bills seamlessly [6]. These two platforms have become so deeply embedded
in Chinese daily life that they are accepted by millions of merchants, ranging from local street
vendors to large retail chains. In Japan, Line Pay and PayPay dominate the digital wallet
landscape, while GrabPay enjoys widespread adoption in Malaysia and Singapore Kakao
Pay, in turn, holds a significant share of the market in South Korea [6].
India has seen a massive growth in the adoption of digital wallets, with a multitude of
options available to consumers. Some of the most popular digital wallets in India include
PayTM, Google Pay, PhonePe, Amazon Pay and ICICI Pockets. These digital wallets have
transformed the way people make payments in India, providing a convenient and secure
alternative to traditional payment methods. The sheer number of digital wallets in India
1|Chapter one
13
reflects the country’s growing demand for digital financial services and highlights the
potential for further growth and development in the payments industry [7].
The Middle East and Africa region also has seen a strong decline of cash use for in-
store payments, supported by the rise of mobile payments [8]. This shift from cash aligns
with the growth of digital and mobile payments, driven by governments, banks, and fintech.
Smartphone penetration is at 80%-90% in the Middle East in leading markets, and 85% of
consumers in the Middle East and North Africa (MENA) region used at least one emerging
payment method in 2022, with usage expected to continue to increase. In countries like the
UAE, cards are still preferred, but digital wallets are the second-most-preferred e-commerce
payment method. They’re set to become the preferred payment method in the next five years.
Consumers in this market have access to global wallet brands like Apple Pay, Google Wallet,
Alipay, and Samsung Wallet, as well as regional digital wallet brands.
The picture is a bit different in Africa, where Apple Pay, for example, is only available
in South Africa and Morocco. Digital payments are often driven through mobile money
accounts (e.g. 296 million registered mobile money accounts in East Africa in
2021). According to GSMA, mobile money transaction values in 2021 grew fastest in the
Middle East and North Africa (49%), followed by Sub-Saharan Africa (40%). 84% of internet
users in Kenya and 60% in Nigeria regularly made payments with mobile phones in 2021 [9].
Mastercard’s New Payments Index 2022, found that 95% of people in South Africa had used
at least one emerging digital payment method in the previous year [10].
In Europe, digital wallets such as Google Pay, Apple Pay, and Samsung Pay have
become increasingly popular and are widely accepted by merchants across Europe [11].
Google Pay, for example, is widely used in countries such as the U.K., France and Germany,
while Apple Pay is widely used in the U.K., France, and Spain. In addition, there are many
regional digital wallets that are popular in different parts of Europe. For example, Mobile
Pay has become a popular choice in Denmark, Swish has seen widespread use in Sweden,
Twint is gaining traction in Switzerland and Satispay is seeing growth in Italy. These digital
wallets have made a significant impact on the European payments landscape.
Based on Mobile Wallets Study 2022 from Visa and Ipsos, Mobile wallet penetration
is fragmented in Europe, with research from showing Nordic markets (Norway, Sweden,
Denmark, Finland) and Switzerland are leading the way for adoption. In these markets
mobile wallet usage ranges from 83% to 94% and cash usage is at 50% for Finland, 44% for
Switzerland, 30% for Denmark, 24% for Sweden, and 17% for Norway [2].
14
1|Chapter one
Figure 1.3: Digital wallets penetration in Europe, by country in 2022 (%) [2].
Norway (94%) and Sweden (86%) have almost entirely shifted away from cash
payments, with Norway, in particular, boasting an advanced cashless payment landscape.
Quick and easy payments motivate Norwegian consumers to choose mobile wallets over
physical cards or cash. Meanwhile, Sweden is the second-highest market for overall mobile
wallet adoption.
Mobile communications make it easier for traders and financial companies to transmit
information such as promotional deals to their clients in such a way that the information is
targeted, useful and more important to their interests. Businesses may also come up with
new branded software that can be freely downloaded. As specific shopping habits and needs
of an individual are controlled, this feature can make consumer communications highly
personalized. Such linked and real-time marketing provides advertisers with a new
opportunity and a strategic challenge. For instance, AliPay offers fast, easy, and secure
payment experience to its customers.
But according to Payments Gets Personal Report by Accenture (2022) traditional
payments methods still dominate the consumer payments landscape, with their survey
showing high usage of cash, debit and credit cards [11]. However, next-generation offerings
such as digital wallets, account-to-account (A2A) and buy now, pay later (BNPL) are rapidly
gaining share— and more disruption is incoming from biometrics, machine-to-machine and
metaverse payments.
On the other hand, Italy, France, and Spain have an evolving payment landscape, with
higher reliance on card usage than mobile wallets. Mobile wallet usage in these countries
ranges from 52% to 53%. Italy, in particular, has a lower mobile wallet adoption rate (52%
compared to the European average of 72%) and cash usage that is aligned with the European
average (38%). This presents a significant growth opportunity to promote the use of mobile
wallets as a preferred payment method. Our findings indicate that Italians are more inclined
than other European markets to plan on using mobile wallets for all purchases in the coming
year (39% vs. 32% European average). This shift in behavior among Italian consumers is an
area worth monitoring as mobile wallets gain prominence [11].
Traditional payments methods still dominate the consumer payments landscape in
the world, with their survey showing high usage of cash, debit and credit cards. However,
1|Chapter one
15
next-generation offerings such as digital wallets, account-to-account (A2A) and buy now,
pay later (BNPL) are rapidly gaining share— and more disruption is incoming from
biometrics, machine-to-machine and metaverse payments [11].
Figure 1.4: The payments landscape evolution
For users of next-generation payment methods who make transactions at least five
times per month, 56% utilize digital wallets, 10% use account-to-account (A2A) payment
apps, and 6% rely on Buy Now, Pay Later (BNPL) services. Many of these and other
innovations have been introduced by new players in the market, including fintech and big
tech companies, to address evolving and unmet consumer demands. Traditional financial
institutions now encounter both an increasing competitive threat and a potential opportunity
for growth in this landscape.
Figure 1.5: Dynamics of using different payment methods in different regions [11].
16
1|Chapter one
Even when consumers are paying in-person, payments are increasingly becoming a
fully digital experience, with new technologies such as biometrics and machine-to-machine
payments removing even more friction. While still in its infancy as a transactional channel,
the metaverse could also create new opportunities and bring disruption to the payments
ecosystem. Among all respondents, 42% agreed biometrics will be widely used by 2025 and
9% said they would be willing to use it as their primary method of in-person payment by
2025 if it were available. This could represent $5.2 trillion in transaction value. Trailblazers
such as Amazon, a with its palm recognition payments solution, are already preparing for
this future. Machine-to-machine (M2M) payments are automated, real-time payments
between connected devices such as digital wallets, smart home devices or autonomous
vehicles that require minimal or no human intervention. An example is a connected car
paying for gas, battery charging, or parking from a digital wallet, without the driver getting
out to present a card.
In a time of economic volatility and evolving customer expectations, banks have an
ace in the hole: consumers trust traditional financial institutions more than they do bigtechs,
fintechs and other next-generation players. Battered by the COVID-19 crisis and facing
rampant inflation, consumers are gravitating towards financial brands that project stability
and security. Consumers have faith that banks are not only financially stable, but also that
they can be trusted to offer a secure environment for transactions.
Accenture Payments research indicates 84% of consumers trust their bank, compared
to just 31% who trust BNPL providers. Because they trust banks to secure payments, more
than a third (38%) would be willing to use next-generation payments instruments such as
BNPL and crypto if provided by their main bank. This offers banks an opportunity to step in
with solutions that level the playing field with new entrants [11].
The Survey conducted by Accenture in 2022 reveals that consumers are frustrated
with current in-person and online payment options. Slow transactions, failed payments and
a lack of merchant support for their preferred payments options are among the biggest
frustrations consumers reported in our survey. Banks need to offer frictionless experiences
or risk losing customers to players that offer more flexibility, speed and ease of use. It is not
surprising that the key drivers for adoption of next-gen payment methods are solutions that
address the frustrations [11].
1|Chapter one
17
1.3 Super-apps
Worldpay’s own Global Payments Report states that a super-app is a mobile or web
application that can provide multiple services including payment and financial transaction
processing [8]. It is a self-contained commerce and communication online platform that
embraces many aspects of personal and commercial life including activities such as travel,
entertainment, traffic updates, personal services from providers such as doctors, and more.
One way that banks could address consumers’ demand for solutions that help them
control their payments and financial lives is by developing super-apps. Researchers find
there is a growing segment of consumers ready to embrace apps that offer full visibility of
payments together with disparate financial products like savings, cashback, rewards,
investments, and wealth management. Today, there are only a handful of true super-apps—
such as Line in Japan, Wechat and Alipay in China - most of them in Asia-Pacific. But
research of Accenture suggests that the time for super-apps may finally be at hand in other
markets, too. Furthermore, some players as disparate as PayPal, Revolut and even Twitter
move towards becoming super-apps [11]. Not all consumers will seek the same journey.
Some are likely to desire payments options that are simply fast, convenient, secure and easy
to understand.
Accenture Research, 56% of users want the convenience of a single app for all
payments, and 60% want a single app which tracks payments from multiple payment
providers, giving them greater transparency and control. Others might be interested in apps
that combine financial and lifestyle options in one place. From the consumer’s perspective,
ease of transacting is the most important feature in a super-app, followed by control and
convenience. Many consumers value having transparency of their purchases and the ability
to consolidate shopping and reward programs in a single app. There will be nuances in
super-app adoption between different customer segments and markets. But Accenture
survey shows that banks are well positioned to capitalize on consumer trust to offer super-
apps. Among respondents, 43% said they trust that their bank’s app is secure and would be
happy to use it for as many everyday life activities as possible [11].
2|Chapter two
18
2 Chapter two: Literature review
2.1 Key features of digital wallets
To stand out in the crowded fintech landscape, a digital wallet app must offer key
features that enhance user experience, ensure security, and provide seamless functionality.
Based on study on digital wallet features from Kantar Public, 2023, below are the most critical
features a robust digital wallet app should have:
1. Initiating transactions
Digital wallets simplify the payment process by allowing users to transact with just a
few taps or clicks. Transactions can be initiated in several ways, depending on the type of
wallet and payment method:
• Near Field Communication (NFC): Contactless payments are made by holding
a smartphone or smartwatch near an NFC-enabled terminal. The digital wallet
communicates with the terminal to complete the transaction without physical contact.
• QR Codes: Many digital wallets allow users to scan a merchant’s QR code to
process payments. Once scanned, the wallet app automatically processes the payment based
on the user’s stored payment method.
• Online payments: For e-commerce purchases, digital wallets can autofill
payment details during checkout, making online transactions faster and more convenient.
Some wallets are integrated directly into websites for a one-click checkout experience.
• Peer-to-Peer (P2P) Transfers: Users can send money to others using just a
phone number, email address, or by scanning a personal QR code, making P2P transfers
quick and simple.
2. Payment authorisation and authentication
Before a transaction is finalised, the digital wallet app requires user authentication to
ensure the person initiating the transaction is authorised to do so. Digital wallets offer
various levels of security to protect against unauthorised use, including:
2|Chapter two
19
• Biometric authentication: Users can verify their identity through fingerprint
scanning or facial recognition.
• PIN codes or passwords: Some wallets require a specific PIN or password to
confirm payments.
• Two-Factor Authentication (2FA): Provides an additional layer of security,
requiring verification through SMS, email, or app-based tokens.
• One-Time Password (OTP): For added security, some wallets send a
temporary OTP via SMS, email or offer a special authentication app for example, Mobile
OTP / MAC Generator by Macrobank that users must input to complete high-value
transactions.
Figure 2.1: Digital Payments Ecosystem [12].
These multi-layered authentication processes help reduce fraud and unauthorised
access.
3. Payment processing
Once the payment is authorised, the digital wallet communicates with the payment
processor, bank, or financial institution to execute the transaction. This involves:
• Transmitting encrypted payment data to the payment gateway or processor.
• Verifying account balances or available credit to ensure the transaction can be
completed.
• Confirming payment with the merchant or recipient.
In the case of NFC or QR code-based transactions, this process occurs almost instantly,
allowing users to complete payments in real time.
20
2|Chapter two
4. Different Types of Payments and Currency Exchange
One key reason digital wallets are so popular is their ability to send and receive money
quickly between users.
• Peer-to-Peer (P2P) Payments: P2P payments allow users to transfer funds to
friends, family, or colleagues in real time, making them perfect for splitting bills, repaying
loans, or making quick transfers without bank intervention. Many digital wallets offer easy-
to-use interfaces for this feature, often requiring just the recipient’s phone number, email
address, or a QR code scan.
• Bill Payments: A fully functional digital wallet app should allow users to pay
bills, recharge mobile phones, and pay for utilities directly within the app. This feature helps
users consolidate multiple payment activities in one place, making it an all-in-one solution
for their financial needs.
• Cross-Border Transactions: As globalization increases and businesses expand
internationally, cross-border transactions are becoming more important. Digital wallet apps
should offer currency conversion and the ability to send money across borders at
competitive exchange rates. This feature is essential for users who frequently travel or
conduct business internationally, ensuring they can make transactions easily in different
currencies without needing to visit a bank or foreign exchange service.
5. Payment cards
Another key feature of a digital wallet app is the ability to store payment cards. Users
can securely store and manage multiple debit, credit, and prepaid cards within the app,
allowing for easy and convenient access to funds. By linking their payment cards, users can
make online and in-store purchases without carrying physical cards.
6. Transaction History and Notifications
A comprehensive transaction history allows users to track their spending, view past
payments, and monitor their financial activities. This transparency fosters trust and helps
users stay on top of their finances. Additionally, real-time notifications for every transaction
provide an extra layer of security and convenience by alerting users to any activity on their
accounts.
7. Post-Transaction Notifications and Receipts
Once a transaction is complete, users receive a confirmation notification from the
digital wallet app. This real-time alert provides details of the transaction, including:
• The amount spent or transferred.
2|Chapter two
21
• The merchant’s name or recipient’s details.
• A transaction ID or reference number.
The digital wallet app may also store a digital receipt, allowing users to track their
spending and access transaction histories. This feature is particularly useful for financial
management and budgeting purposes.
8. Rewards, Loyalty Points, and Budgeting Tools
Many digital wallets offer value-added features beyond basic payments. For
example:
Loyalty and Rewards Integration: Some digital wallets automatically link to loyalty
programs, enabling users to earn points or redeem discounts as they shop.
• Expense Tracking and Budgeting: Users can monitor their spending patterns,
categorise expenses, and set budget limits within the wallet app.
• Financial insights and analytics: Visual graphs and summaries provide a
deeper understanding of financial habits.
These insights enable users to make better financial decisions and manage their
money more effectively.
9. Security Features of Digital Wallets
Features like tokenization, end-to-end encryption, and biometric authentication
ensure that users’ payment data remains always protected. Even if the physical device is
lost or stolen, features such as remote locking, data wiping, and the requirement for proper
authentication before completing a transaction safeguard the user’s financial information.
Additionally, fraud detection algorithms integrated into digital wallets monitor
suspicious activity and alert users to potentially fraudulent transactions.
10. Chat
Another important feature is the ability to chat and communicate directly with bank
operators. This feature provides users with instant access to customer support, allowing
them to resolve issues, ask questions about transactions, or receive real-time assistance with
their accounts. Integrated chat functions often include automated responses for common
inquiries and the option to connect with a live agent when necessary. This feature enhances
the user experience by offering quick, personalised service without the need to visit a bank
branch or make a phone call.
22
2|Chapter two
11. Integration with Other Financial Services
An open digital wallet app should seamlessly integrate with other financial services
and platforms. This could include links to:
• Current accounts and investment portfolios.
• Cryptocurrency wallets for users interested in buying, selling, or holding
digital assets.
This level of integration allows users to manage all their financial activities from a
single app, offering both convenience and a streamlined experience.
12. Regulatory and Compliance Features
• PSD2/3 and Open Banking: European wallets leverage PSD2/3 (Payment
Services Directive) for secure APIs and third-party integrations.
• GDPR Compliance: Ensures protection of user data and privacy.
• Strong Customer Authentication (SCA): Provides extra layers of verification
under European regulations.
13. Accessibility and User Experience
• User-Friendly Interface: Designed for quick navigation and seamless
transactions.
• Offline Payments: Some wallets allow limited offline transactions without
requiring internet access.
• Global Accessibility: Can be used for cross-border payments in supported
regions.
Digital wallets have transformed the way people manage their finances by offering a
wide range of features that enhance convenience, security, and user experience. Key
functionalities like payment card storage, transaction history, real-time notifications, and
value-added features such as rewards integration and budgeting tools empower users to
manage their finances effectively. Advanced security measures, including tokenization,
biometric authentication, and fraud detection, safeguard sensitive data. Integration with
other financial services and compliance with regulations like PSD2/3, GDPR, and Strong
Customer Authentication ensure a secure and user-friendly experience. As digital wallets
continue to evolve into comprehensive financial ecosystems, they will play an increasingly
vital role in the digital economy.
2|Chapter two
23
2.2 Types of digital wallets
Based on the article from Corporate Finance Institute (2023), there are three primary
types of digital wallets, each offering different levels of accessibility and functionality:
• Closed Wallets
Closed digital wallets are developed and managed by a specific company for
exclusive use with its products or services. Funds stored in a closed wallet can only be spent
within the company’s ecosystem. They cannot be transferred to other wallets or withdrawn
as cash. For instance, the Starbucks wallet allows users to add funds to the app for purchases
at Starbucks locations, but these funds cannot be used outside the company’s network.
• Semi-Closed Wallets
Semi-closed wallets enable users to make payments at a range of authorized
merchants and partners, both online and in physical stores. Although they provide greater
flexibility compared to closed wallets, their use is still restricted to specific retailers and
services. Typically, semi-closed wallets do not allow direct cash withdrawals or peer-to-peer
transfers outside the designated network. An example would be a wallet used within certain
shopping malls or merchant networks, where users can make purchases at various stores
within the network but are limited to those participating merchants.
• Open Wallets
Open wallets provide the most freedom and versatility, as they are often integrated
with banks and other financial institutions. Users can make payments at various merchants,
withdraw funds, transfer money to bank accounts, and make peer-to-peer transfers. These
wallets work globally and are suitable for both online and offline transactions. A common
example of an open wallet is the payment app of a digital bank or payment service provider,
allowing users to send and receive money and conduct transactions worldwide. Fraud
detection algorithms integrated into digital wallets monitor suspicious activity and alert
users to potentially fraudulent transactions.
According to the Way Funds Are Managed, digital wallets can be categorized into
two types [14]:
• Pass-through digital wallet is one in which the card payment information is
utilised directly. It will be passed on to the issuer and the card network, often with a physical
device such as a smartphone taking the place of a physical debit or credit card. Although
the card itself isn’t used in the transaction, the information from the card will still be
24
2|Chapter two
provided. Examples of pass-through digital wallets in widespread use include Apple Pay,
Chase Pay, Android Pay and Samsung Pay.
• A staged digital wallet is one which makes use of multiple stages in order to
complete the transaction being made. These stages can be divided into a funding stage and
a payment stage, and working through these stages means that the digital wallet doesn’t
pass card details to the card brand or issuer. When a staged digital wallet is used, the first
stage involves the wallet acquiring funds from the purchaser. The second stage is then the
payment stage, in which the wallet operator passes the money on to the business. The staged
digital wallet plays the role of ‘middleman’ between the purchaser and the merchant. When
a staged digital wallet is used, the card issuer and network aren’t aware of useful data such
as what type of card has been used. Examples of staged digital wallets in widespread use
include PayPal, Google Wallet and Square Cash.
Pass-Through Digital Wallets
Staged Digital Wallets
Customer Adds Card
Customer Account Setup
Adding Items to Cart
Funding the Wallet
Authentication through Touch ID or OTP
Adding Items to Cart
Payment Processed
Initiating Purchase
Item Purchase Complete
Wallet Authentication
Payment Processed
Item Purchase Complete
Table 2.1: Comparison of functionalities of staged and pass-through digital wallets
According to storage type, digital wallets can be categorized into two types [14]:
• Centralized Wallet
A centralized wallet is an electronic wallet that is managed and controlled by a single
institution, such as a bank or financial company. This form of wallet stores users’ money
and private data on central servers, offering a traditional approach of managing digital
assets. Distinctive features of centralized wallets:
- Secure storage of funds and personal information
- Ability to send and receive mobile purchases
- Transaction history tracking
- User authentication and authorization
- Integration with banking and financial services
Examples of centralized wallets: PayPal, Venmo, Apple Pay.
2|Chapter two
25
• Decentralized Wallet (DeFi)
A decentralized wallet, also known as decentralized finance (DeFi), is a sort of digital
wallet examples that operates on the blockchain network [15]. This approach gives
consumers total control over their cash, eliminating the need for a centralized supervisor.
Distinctive features of decentralized wallets:
- Self-custody of assets
- Direct peer-to-peer transactions
- Integration with DeFi platforms and services
- Support for multiple cryptocurrencies
- Enhanced privacy and security
Examples of decentralized wallets: MetaMask, Trust Wallet
Since a digital wallet is a payment method, it’s involved in the full payment
processing flow. Discover more about how to build a payment gateway, one of the integral
components of transaction processing.
Digital wallets also can vary based on what parties utilize such wallets, as it largely
impacts the functionality needed:
• Merchant Wallet
A merchant wallet is a sort of digital wallet designed specifically for shops and
merchants to accept digital payments. Such types of wallet account simplify transactions
between companies and customers by often integrating with point-of-sale (POS) systems
and e-commerce platforms.
Distinctive features of merchant wallets:
- Acceptance of various payment methods (credit/debit cards, digital
currencies)
- Integration with POS systems and e-commerce platforms
- Instant payment processing
- Sales and transaction tracking
- Refund and chargeback management
Examples of merchant wallets: Square Wallet, Shopify Payments, Stripe Terminal
• Retail Bank Wallet
A retail bank wallet is a digital wallet provided by traditional banks to their
customers. It enables users to conduct various banking transactions digitally, such as
transferring money, paying bills, and managing accounts.
Distinctive features of retail bank wallets:
- Money transfers and bill payments
26
2|Chapter two
- Account balance and transaction history
- Mobile device check deposit
- ATM locator
- Integration with bank’s other services
Examples of retail bank wallets: Chase Mobile, Bank of America Mobile Banking,
Wells Fargo Mobile
• B2B Wallet
A B2B (business-to-business) wallet is a digital wallet designed to facilitate
commercial transactions. It simplifies the payment process in B2B transactions by providing
features such as bulk payments, invoicing, and payment tracking.
Distinctive features of B2B wallets:
- Bulk payment processing
- Invoicing and payment tracking
- Integration with accounting software
- Multi-user access for team management
- Secure fund transfers between businesses
Examples of B2B wallets: PayPal Business, Veem, Payoneer.
Since currencies supported can be a predominating factor in choosing a particular
wallet, categorization by currency availability should also take place [14]. Let’s review this
list of e-wallets, distinguished by currency availability as well:
• Single Currency Wallet
A single currency wallet is a digital wallet that only accepts one sort of currency,
whether it fiat or cryptocurrency. It is intended for users who do most of their transactions
in a single currency.
Distinctive features of single currency wallets:
- Storage and management of a single currency
- Sending and receiving payments in that currency
- Transaction history tracking
- Secure storage of funds
- User-friendly interface for easy transactions
Examples of single currency wallets: Bitcoin Wallet , MyEtherWallet , Cash App
2|Chapter two
27
• Multicurrency Wallet
A multicurrency wallet is a digital wallet that accepts various currencies, including
fiat and cryptocurrencies. It enables users to maintain and transact in several currencies
through a single platform.
Distinctive features of multicurrency wallets:
- Support for multiple currencies
- Easy switching between currencies
- Secure storage of funds for each currency
- Sending and receiving payments in different currencies
- Consolidated transaction history
Examples of multicurrency wallets: Revolut, Coinomi, Atomic Wallet.
According to Digital Wallets by Device Platform, there are three main software
platforms, mobile, desktop, and cross-platform. Digital wallets are categorized by this factor
as well:
• Mobile Platform Wallet
A mobile wallet is a digital wallet that is designed for use on mobile devices like
smartphones and tablets. Mobile wallets allow users to manage their funds and make
transactions on the go.
Distinctive features of mobile platform wallets:
- Touchscreen interface optimized for mobile device use
- QR code scanning for payments
- Near Field Communication NFC for contactless payments
- Integration with mobile banking and payment apps
- Biometric security features (fingerprint, facial recognition)
Examples of mobile platform wallets: Apple Pay, Google Pay, Samsung Pay
• Desktop Platform Wallet
A desktop platform wallet is a digital wallet application that may be used on
desktop or laptop computers. It provides a standard computer-based interface for managing
digital assets and credit card transactions.
Distinctive features of desktop platform wallets:
- Comprehensive user interface for detailed asset management
- Integration with desktop applications and software
- Enhanced security features like encryption and two-factor authentication
- Backup and restore options for wallet data
- Support for various cryptocurrencies and fiat currencies
28
2|Chapter two
Examples of desktop platform wallets: Electrum, MetaMask (browser extension).
• Cross-Platform Wallet
A cross-platform wallet is a digital wallet that works with a variety of operating
systems and devices, giving consumers a consistent experience across their smartphones,
tablets, and laptops.
Distinctive features of cross-platform wallets:
- Synchronization of wallet data across devices
- Uniform user experience on different platforms
- Secure access to funds from any device
- Backup and recovery options across platforms
- Support for a wide range of currencies and assets
Examples of cross-platform wallets: Jaxx Liberty, Trust Wallet.
Finally, there are several digital wallet types that don’t quite fit any other category
and constitute all other types of wallets:
• Crypto Currency Wallet
A cryptocurrency wallet is a digital wallet program that is particularly built for
storing, managing, and transacting bitcoin. It enables users to securely store their private
keys, which are required for accessing and transacting their digital assets
Distinctive features of crypto currency wallets:
- Secure storage of private keys
- Sending and receiving cryptocurrencies
- Viewing transaction history
- Support for multiple cryptocurrencies (in some wallets)
- Integration with blockchain networks
Examples of crypto currency wallets: Coinbase Wallet, Blockchain Wallet, Exodus
Wallet.
• Currency Exchange Wallet
A currency exchange wallet is among e-wallet types developed exclusively for
exchanging multiple currencies, including fiat and cryptocurrency. It enables the purchase,
sale, and trading of currencies on a secure platform.
Distinctive features of currency exchange wallets:
- Real-time currency exchange rates
2|Chapter two
29
- Support for multiple fiat and cryptocurrencies
- Secure storage of funds during the exchange process
- Integration with currency exchange services
- Transaction history and reporting tools
Examples of currency exchange wallets: Wise, CurrencyFair, Kraken.
• Prepaid Cards Wallet
Prepaid card wallets are digital wallets that allow users to store and manage
prepaid debit and gift cards. It allows you to easily access and utilize prepaid funds for a
variety of transactions.
Distinctive features of prepaid cards wallets:
- Storage and management of multiple prepaid cards
- Balance checking and transaction history for each card
- Secure PIN and card information storage
- Easy top-up and reload options
- Integration with payment networks and retailers
Examples of prepaid cards wallets: Gyft, NetSpend (prepaid debit card
management).
Digital wallets today come in various forms to meet diverse customer
requirements and keep up with rapid technological developments. From basic payment
solutions to comprehensive financial management tools, they offer features tailored to
different user needs.
2.3 Regulatory landscape in Europe
Regulatory compliance is crucial for any digital wallet app, as it directly impacts its
ability to operate legally and securely within the financial ecosystem. Given that digital
wallets are often interconnected with various banks and payment service providers,
companies offering these services must obtain the necessary licenses and permissions to
conduct digital wallet operations. This can include acquiring e-money or payment licenses
in the EU and UK, registering as a Money Services Business (MSB) in the US and Canada,
obtaining a fintech license in Switzerland, or securing a payment license in Singapore and
other Asian countries [16].
Each region has its own regulatory framework, and compliance with these
regulations is essential to ensure consumer protection, prevent fraud, and maintain the
financial system’s integrity. Failure to adhere to these requirements can lead to severe
30
2|Chapter two
penalties, legal issues, and damage to the company’s reputation, making it imperative for
digital wallet providers to prioritise regulatory compliance in their business strategies.
The European regulatory environment for digital wallets is robust, ensuring
security, transparency, and compliance with user privacy while fostering innovation. Key
regulations shaping digital wallet operations include the PSD3 Directive, GDPR, and the
emerging EUDI Wallet framework.
PSD3 is a proposed update to the second European Union’s Payment Services
Directive (PSD2) that provides rules for the authorization and supervision of non-bank
payment service providers (PSPs) in the EU [17]. The PSD3 aims to protect consumers’
rights and personal information while fostering healthy competitiveness in the digital
payments sector. It’s expected to empower consumers to share their data and contribute to
the development and distribution of financial products and services. Since PSD3 UK is a
directive, not the regulation itself, the PSD3 rules need to be transposed into the national
laws of the EU Member States, i.e., countries belonging to the European Union.
While not exclusively a mobile payment regulation, GDPR has significant
implications for digital wallet apps in terms of how they collect, store, and use personal
data. It emphasizes user consent, data minimization, and the right to data portability,
ensuring that users’ privacy is protected in all digital transactions [18].
According to report of European Commission 2024, The European Digital Identity
(EUDI) Regulation will revolutionise digital identity in the EU by enabling the creation of a
universal, trustworthy, and secure European digital identity wallet [19]. The new
Regulation establishing a framework for a European Digital Identity builds on the 2014
Regulation on electronic identification and trust services for electronic transactions in the
internal market (eIDAS Regulation) [20]. Under the eIDAS regulation, EU Member States
could, on a voluntary basis, notify national electronic identification schemes, which other
Member States where then obliged to recognise. The recognition of notified electronic
identification became mandatory in 2018. Yet, there was no requirement for Member States
to develop a national electronic identification. Interoperability was achieved only by
implementing a interoperability superstructure connecting the various identity systems,
which was prone to technical problems. This has led to discrepancies between countries and
prevented the extension to private digital services.
The new regulation addresses the shortcomings of eIDAS by improving the
effectiveness of the current framework for digital Identity and extending its benefits to the
private sector. Member States will be mandated to offer citizens and businesses digital
wallets, which can link their national digital identities with proof of other personal
attributes like driving licenses, diplomas, and bank accounts. These wallets may be issued
either by public authorities or recognised private entities. The aim is to provide Europeans
2|Chapter two
31
with full control over their data while accessing online services, eliminating unnecessary
data sharing. Service providers legally obliged to identify their customers unequivocally
will be obliged to accept the wallet for authentication.
The EU Digital Identity Wallets will build on national systems that already exist in
some Member States. The new regulation establishes that digital identities will continue to
be provided by Member States. The European Digital Identity Wallet builds on this basis,
expanding the functionalities and usability of national eIDs and ensuring mutual
recognition of national wallets by the other member states.
It will also promote a harmonized security approach, facilitating widespread
acceptance of digital identities throughout the EU. This approach will be the cornerstone of
the regulation, granting both citizens and online service providers with a common technical
architecture, reference framework, and standards. This harmonization ensures the
recognition and acceptance of digital identity solutions throughout the EU, fostering trust
and interoperability.
Aligned with existing cybersecurity legislation, the regulation mandates
compliance with cybersecurity requirements, bolstering confidence in digital identity
solutions. Additionally, it enables the issuance of electronic attestations by public bodies,
promoting the pan-European recognition of credentials in electronic form while prioritizing
data privacy.
Beyond mere identification, the regulation will expand the scope of trust services
to include recording of electronic data in an electronic ledger, the management of remote
electronic signature and the creation devices or remote electronic seal creation devices.
The European Digital Identity Cooperation Group supports the implementation of
the EUDI Regulation, provides guidance to the Commission, and engages with the
Commission and other relevant stakeholders to develop a common Union Toolbox.
Regulation (EU) 2024/1183 establishing the European Digital Identity Framework
has entered into force [21]. The framework mandates Member States to provide EU Digital
Identity (eID) Wallets to citizens within 24 months of Implementing Acts adoption. The five
Implementing Acts have been adopted on the 28th of November 2024 and lay down the
rules for the core functionalities and certification of the eID Wallets. The Acts have been
informed by requirements and specifications developed for the EU Digital Identity Toolbox
and ensure uniform implementation of wallets across Europe.
Large-scale pilot projects are underway to test technical specifications and software
prototypes for the EU Digital Identity Wallet across various sectors in multiple European
countries [22]. These pilots aim to assess the wallet's usability in scenarios such as accessing
government services, opening bank accounts, and facilitating secure online payments, with
32
2|Chapter two
participation from private companies and public authorities across Member States, Norway,
Iceland, and Ukraine.
2.5 The importance of digital identification and development
EUDI wallet
The management of digital identities is a critical issue in the rapid ongoing
evolution of digital government services and within digital nations. The widespread use of
public and private sector online services as well as via digital devices requires individuals
to frequently share personal information. This has created demand for the use of digital
identities. Unfortunately, a fragmented landscape has evolved where users must handle
multiple usernames, passwords, and authentication methods.
Despite being designed for security, digital identities are usually spread across
multiple domains, each requiring unique access credentials. This fragmentation poses risks
and cognitive challenges for users, who must manage various personas protected by
different security measures. The more credentials' users must handle, the greater the risk of
security breaches.
The current digital identity landscape presents a challenging balance between
convenience and security. There is consequently a growing need for innovative solutions
that simplify identity management while strengthening defences against evolving digital
threats.
Digital wallets have emerged as a promising solution for managing digital
identities efficiently. These applications allow users to store, manage, and deploy various
digital assets, such as personal data, payment information, and credentials. They offer a
streamlined user experience and enhanced security.
The OpenWallet Foundation (OWF) is a key player in the promulgation of digital
wallets, focusing on open-source development that supports interoperability across various
wallet applications. This aligns with the broader trend toward user empowerment and
secure, user-centric digital identities.
It is also important to note the role of the ecosystem of federated services and
catalogues. Federated catalogues enable seamless discovery and access to services through
centralised repositories. These systems synchronise information across various catalogues,
ensuring that data remains accurate and up to date. When integrated with digital wallets,
federated catalogues improve service discovery and personalisation while maintaining
security [25].
2|Chapter two
33
Over the years, different models for identity management have been developed.
The isolated model, where each service provider operates its own identity provider (IdP),
was the earliest approach. It has since evolved into the central identity model, which
outsources IdP functions to a central entity serving multiple providers. However, concerns
over centralisation led to the introduction of federated identity management, which builds
trust relationships among multiple IdPs. The user-centric model gives individuals more
control over their identity data, while the Self-Sovereign Identity (SSI) model represents a
shift towards fully user-controlled credentials.
The federated IdMS model moves away from centralised identity management,
connecting identity information across multiple organisations. This approach allows users
to access multiple services within a federation using a single authentication process, known
as Single Sign-On (SSO). The federated model offers better scalability, adaptability, and
user-focused identity management compared to traditional systems [26]. As cloud
computing continues to expand, secure and seamless access to cloud services is essential. It
is important to explore the types of identities needed for various cloud services, future needs
for digital wallets and federated identity management, and the challenges associated with
implementing these systems in cloud environments.
Cloud-based identity management can be classified into three main categories: user
identities, service identities, and device identities. User identities allow individuals to access
cloud services, while service identities are tied to specific applications or cloud services.
Device identities are used for authenticating and authorising devices that interact with
cloud resources. Effective identity management requires tailored approaches for each
identity category, considering their unique requirements and functions.
Key requirements for digital wallets include:
• Secure storage of identity data
In the dynamic environment of cloud services, protecting identity and identity-
related data is a top priority. Secure storage underpins trust and data protection by ensuring
the confidentiality, integrity, and availability of sensitive information. This protection is
achieved through cryptographic measures, access controls, encryption, and continuous
monitoring. A robust security infrastructure minimises risks like data breaches and identity
theft, preserving the integrity of digital identities essential for accessing cloud resources.
• Effective management of identity data
Managing identity-related data within the cloud involves curating, reviewing, and
controlling data sharing beyond cloud boundaries. The objective is to empower users by
promoting digital self-determination. Users should have the ability to select, modify, or
delete identity data stored in the cloud. This highlights how selective data sharing as a
34
2|Chapter two
privacy mechanism can enhances trust. By prioritising user autonomy, the cloud
environment encourages individuals to take an active role in managing their digital
identities.
• Secure sharing of identity data
Secure sharing of identity data beyond cloud boundaries is a critical component of
cloud-based identity management. This involves establishing robust communication
channels and protocols to maintain data integrity and confidentiality during transmission.
The balance between seamless service delivery and strong data protection lies at the core of
this element. Trust and technology intertwine to create a secure digital ecosystem, where
secure sharing safeguards privacy and bolsters cloud security.
• Secure storage of cryptographic material
Cryptographic elements, such as keys and certificates, form the foundation of trust
in digital identity management. This requirement focuses on protecting these components
from unauthorised access by using secure storage mechanisms and strict confidentiality
measures. The lifecycle management of cryptographic material—spanning generation,
distribution, rotation, and retirement—requires careful oversight to remain resilient against
emerging threats. Adhering to this ensures the trustworthiness of cloud-based identity
management.
• Combining identity data before sharing
Selective disclosure is at the heart of this requirement, which allows users to
combine and curate identity data according to specific sharing needs. This approach
enhances privacy while enabling precise control over which aspects of identity data are
shared. It also promotes a more refined data-sharing model, where users can tailor
disclosures based on situational requirements. This flexibility fosters trust and reinforces
privacy within cloud-based identity management.
Digital Identity and Inclusion, digital wallets offer significant benefits in cloud-
based identity management:
User convenience: Digital wallets provide a centralised platform for managing
identities across various cloud services, simplifying the user experience and reducing the
cognitive load of managing multiple credentials.
Robust security infrastructure: Digital wallets implement advanced security
measures, including robust authentication, encryption, and access controls, ensuring the
protection of identity data even in the face of potential breaches.
2|Chapter two
35
Empowerment and data sovereignty: Users gain control over their personal
information, deciding who can access it. This empowerment marks a shift towards user-
centric identity management, where individuals are active custodians of their digital
identities.
The European Digital Identity (EUDI) Wallet is a cornerstone initiative to provide
a secure, unified, and interoperable digital identification solution for all EU citizens and
businesses. Its development addresses the limitations of previous systems, such as eIDAS
Regulation [22].
The main benefits of implementing EU Digital Identity Wallets could be for:
Citizens and businesses:
• User control: Citizens will have the power to choose which aspects of their
identity and data they share with third parties, ensuring privacy and control over personal
information.
• Widespread usability: The EU Digital Identity Wallets will be available across
the EU for accessing public and private digital services, making online interactions more
seamless and efficient.
• Transparency and security: the EU digital wallets will be open-source licensed,
ensuring transparency and security. Users will be reassured that their data is handled
securely, with measures in place to prevent misuse or illegal tracking.
• Ease of use: The wallets will offer a user-friendly interface, allowing
individuals to easily manage their digital identities and access services. Creating qualified
eSignatures for non-professional use will be free, enhancing accessibility.
• Smooth onboarding: Citizens will be able to use national eID schemes to
register for the wallets, ensuring a smooth transition to digital identity management.
Governments:
• Improved access to digital services: The wallets can streamline the process of
identity verification, making it easier for citizens to access government services online and
boost uptake.
• Enhance fraud prevention: By providing a secure and verifiable means of
identity, it can help reduce identity theft and related fraud as regards government services.
• Improves security: The overall security of citizen data will be enhanced and
the risk of breaches reduced.
36
2|Chapter two
Providers of digital services:
• Improve security and privacy: The wallets can reduce the risk associated with
liability for traditional authentication methods.
• Reduce cost of authentication: The wallets can lower the costs associated with
identity verification processes by simplifying and automating them.
• Avoid relying on competing big platforms: Service providers will have to rely
less on identity services with unclear use of the obtained user data.
Society:
• Increased online transactions: With easier and more secure verification, people
may be more inclined to engage in online transactions.
• New business opportunities: The adoption of Identity Wallets can spur
innovation, leading to new services and products.
• Resource reallocation: Resources previously dedicated to manual verification
processes can be redirected to more productive uses.
• Economic growth: Overall, greater adoption of online transactions, new
business opportunities and an improved resource allocation can contribute to overall
economic stability and growth.
Digital identification and the development of the EUDI Wallet are vital for fostering
a secure, inclusive, and innovative digital economy in Europe. By addressing security,
interoperability, and data privacy concerns, the EUDI Wallet empowers citizens, supports
businesses, and enhances cross-border service delivery. It not only strengthens trust in
digital transactions but also positions the EU as a global leader in digital identity
infrastructure.
3|Chapter three
37
3 Chapter three: Research methodology
3.1 Research design and approach
This research adopted a mixed-method approach to explore the landscape of digital
wallets, with a focus on their European dimensions. The approach involved a two-step
analysis: first, identifying and examining the top 10 global digital wallets; second,
conducting a country-specific investigation of digital wallets within Europe to uncover both
widely used and localized options.
Research Questions
1. What are the characteristics and the additional services of the most
popular digital payment wallets in Europe?
2. What key features define the most popular digital payment wallets and
set them apart as innovative payment solutions?
To answer these questions, a census was constructed by gathering data on digital
wallets in Europe and analyzing their key features. The data collection process for this thesis
was designed to provide comprehensive and reliable information to address research
questions. The primary focus was on understanding the features and processes of payment
and verification technologies in digital wallets across Europe. To achieve this, a structured
approach was adopted, combining secondary data from literature and primary data from
publicly available sources such as official websites and mobile applications of digital wallets,
documentation and regulatory reports and market research reports.
The data collection process utilized a range of diverse sources to ensure a
comprehensive understanding of digital wallets:
Literature review: The initial phase of data collection involved a detailed review of
academic and industry literature to identify existing theoretical frameworks and trends in
digital wallets. This helped establish a foundation for analyzing key features such as security
mechanisms, biometric authentication, and compliance with European regulations (e.g.,
PSD3, GDPR, and the EUDI wallet initiative).
Official websites and mobile applications of digital wallets: Primary data was
collected by reviewing technical documentation, user guides, and feature descriptions
38
3|Chapter three
provided by various digital wallet providers. This information was essential for mapping the
characteristics of payment and ID verification processes in different wallet solutions.
Regulatory reports: Reports and publications from European regulatory bodies (e.g.,
the European Banking Authority) were reviewed to ensure alignment with legal and
technological standards.
Market research reports: Insights were obtained from market analysis reports and
industry studies to contextualize the technological and adoption trends in Europe.
The combination of these primary and secondary data sources provided a
comprehensive understanding of the European digital wallet landscape. The collected data
was organized using a predefined framework of variables, selected based on their relevance
to the research objectives and described in paragraph 3.2.
3.2 Summary of analyzed variables
This chapter provides a detailed examination of the variables analyzed to compare
the features, functionalities, and overall market positioning of digital wallets. These variables
were selected to highlight the technological capabilities, user experience, and regional
nuances of wallets across global and European markets. Below, each variable is discussed in
detail based on our findings.
1. Name and Country of origin
The name of the digital wallet and its country of origin reflect its historical and
cultural context: global wallets (Apple Pay, Google Pay, PayPal, and AliPay) and local
wallets in Europe (DIAS (Greece), Lydia (France), BancomatPay (Italy), and Bizim (Spain)),
which cater to specific regional needs and preferences. A comparison of their origins reveals
that global wallets often expand across borders, while local wallets focus on adapting to
domestic market demands.
2. Availability
Availability demonstrates the geographical reach of each wallet. Worldwide wallets
such as PayPal, Apple Pay, Google Pay operate across multiple continents, including Europe,
North America, Asia, and Oceania. In contrast, European wallets like MB WAY (Portugal)
and Satispay (Italy, expanding to Germany) are tailored to the European market. Some
wallets are restricted to a single country, such as Swish in Sweden, Twint in Switzerland.
Lastly, selected country wallets like Revolut serve Europe, North America, Asia, and
Oceania, while Cash App (US and UK) and Venmo (US) focus on fewer regions. This
3|Chapter three
39
distinction showcases strategic differences between broad expansion and deep local market
penetration.
3. Date of release on the market
The launch year provides context for technological innovation and market trends.
By tracking the release dates, we can better understand the evolution of the digital payments
industry.
4. Number of users
The scale of user adoption reveals the popularity and trustworthiness of wallets.
Understanding user adoption helps assess a wallet’s market impact and customer trust.
5. Services provided (1 – if yes; 0 – no)
This variable includes:
• Payments for goods and services: possibility to conduct transactions in physical
stores, allowing customers to make purchases using digital wallets at point-of-sale terminals.
• P2P Transfers: possibility to transfer funds directly between individuals using
digital wallets.
• Online purchases: possibility to conduct transactions facilitated by digital
wallets through online payment authorization.
• Fees for merchants: fees for transactions reflect the cost incurred by merchants
for each payment processed through the wallet. These fees are typically charged as either a
fixed amount per transaction (e.g., €0.10/transaction) or as a percentage of the transaction
value (e.g., 1.5%/transaction). The structure and rates vary across wallets, influencing their
attractiveness to merchants and their competitive positioning in the market.
• Investments: possibility to purchase and manage financial assets, such as
stocks, gold, bonds, and other securities, directly within the digital wallet.
• Savings: possibility to store money in interest-bearing accounts or use savings
features within the digital wallet, allowing users to earn returns over time.
• ATM Withdrawals: the ability to withdraw cash from ATMs using a digital
wallet.
• Bill Payments: possibility to pay utility bills, rent, mobile phone recharges, and
other recurring expenses.
• Cashback: a rewards feature where users receive a percentage of their spending
back as a credit to their wallet.
40
3|Chapter three
• Fidelity/Loyalty card: possibility to upload and use loyalty or membership
cards directly within the digital wallet, allowing users to accumulate rewards, points, or
discounts when making purchases at participating retailers.
• Possibility of uploading IDs: possibility to upload and store identification
documents, such as passports, driver’s licenses, or health cards, within the digital wallet.
• Crypto: the ability to buy, sell, store, and use cryptocurrencies within the
wallet.
6. Type of verification (1 – if yes; 0 – no)
The type of verification utilized by digital wallets significantly impacts their security
and usability. Most digital wallets analyzed employ multi-factor authentication to ensure
secure transactions.
• Passport or photo ID: most wallets require users to upload official identification
documents (passport or photo ID) as part of their Know Your Customer (KYC) process. This
step ensures that users are verified against fraudulent activities.
• Address proof: some wallets require users to confirm their residential address
by uploading utility bills, rental contracts, or bank statements that include their name and
address.
• Bank account verification: to link a bank account, users may need to connect it
through online banking, verify a small deposit, or enter an IBAN number.
• SMS codes: wallets require phone verification via SMS to link the account with
a verified contact method. This ensures that users have access to a recoverable account in
case of loss of credentials.
• Email verification: some digital wallets require users to confirm their email
address by entering a verification code sent to their registered email.
• Face verification: some digital wallets require users to take a live photo or
record a short video while holding their ID to verify their identity.
7. Supported Currencies
Understanding which currencies digital wallets support is important because it
shows how far their services reach, how easily users can make cross-border payments, and
how well they meet the needs of people in different countries - all of which play a big role
in their popularity and success.
8. Type of wallet
Digital wallets can be classified based on their operational model:
3|Chapter three
41
Staged Wallets: These wallets operate in two stages. First, the customer loads funds
(electronic money) into the wallet, creating a balance within the platform. Second, the wallet
makes payments on behalf of the customer by transferring an equivalent amount of
electronic money to the beneficiary's wallet. In this model, the wallet acts as an
intermediary, managing both the electronic funds and the payment process. For example,
PayPal functions as a staged wallet, allowing users to store money and make quick
payments without linking to a bank account for every transaction.
Pass-Through Wallets: Pass-through digital wallets act as intermediaries between
the customer and the payment service provider (PSP) without holding or taking possession
of funds. Instead, they transmit the customer's payment credentials (such as a card token)
to the PSP or payment network, facilitating the transaction without directly executing it.
Wallets like Apple Pay and Google Pay follow this model, enhancing convenience by
eliminating the need for users to pre-fund their wallets.
9. Top-up methods
The methods available to users for funding their digital wallets are pivotal to their
functionality and accessibility. Depending on the wallet type (staged or pass-through) and
its internal balance structure, the top-up methods can vary significantly.
• Cards: Wallets, such as PayPal, Apple Pay, and Google Pay, allow users to
attach debit or credit cards as a funding source. This method ensures seamless and quick
transactions, making it a preferred option for most users.
• IBAN or Bank Account Transfers: Some wallets, including MB WAY and
Swish, provide users with the ability to top up their accounts via bank transfers or IBAN-
based deposits.
• E-money Payment: Wallets with an internal balance, such as AliPay and Lydia,
allow users to recharge this balance through various means, including direct transfers from
linked bank accounts or cards. For example: recharging with bank account; recharging with
payment cards; recharging with cash (for example, mBills, Paysera).
10. Payment Technology
Payment technology defines the mechanisms by which users can perform
transactions, bridging the gap between the digital wallet and the merchant. The wallets
analyzed employ various payment technologies, offering users diverse methods tailored to
different payment contexts.
• NFC (Near-Field Communication): NFC technology allows contactless
payments by simply tapping the user's device near a compatible terminal. Wallets like
Apple Pay and Google Pay are prime examples of this feature, enabling quick and secure
42
3|Chapter three
payments in physical stores. This method has become standard in modern digital wallet
solutions due to its convenience and speed.
• QR or Bar Codes: Wallets such as Satispay rely on QR codes for transactions.
In this case, users can scan a QR code displayed at a merchant's checkout point to authorize
payments. This method is particularly popular in contexts where NFC infrastructure is
unavailable or less widespread, offering an easy and accessible alternative.
• Internet-geolocalisation: This method leverages geolocalisation technology to
identify nearby merchants, allowing users to select a shop for payment based on proximity.
It is a versatile option that also supports online payments, eliminating the need for physical
interaction. For example, AliPay, which enables users to pay either via their app interfaces
or through e-commerce platforms seamlessly.
3.3 Steps performed
The identification of the top 10 digital wallets in the world was conducted based on
factors such as market share, technological innovation, and widespread adoption. This list
included major players such as Apple Pay, Google Pay, PayPal, Samsung Pay, Zelle,
Venmo, AliPay, WeChat Pay, Amazon Pay, and Cash App - platforms that have shaped the
way digital payments are made worldwide [100].
For each wallet, core functionalities were examined, including how transactions are
processed, the security measures in place, and the integration with digital identity systems.
Various payment verification methods - such as biometric authentication, two-factor
authentication, and traditional PINs and passwords - were analyzed. Additionally, global
reach was explored by identifying regions with the highest adoption rates and assessing how
these wallets adapted to different regulatory and technological environments.
This first stage gave a broad perspective on what defines a successful digital wallet and
what key features drive user adoption on a large scale.
Country-specific investigation in Europe
Following an examination of the most prevalent wallets on a global scale, an
understanding of their primary characteristics was obtained. Subsequently, the focus shifted
to Europe, aiming to map out which digital wallets are most used in each country and
identify any local wallets that have gained traction alongside global players.
A systematic, country-by-country investigation was conducted using secondary
data sources such as industry reports, company websites, and regulatory filings. This
approach helped pinpoint both internationally dominant wallets - like Apple Pay and Google
Pay, which are available across most of Europe - and country-specific solutions that cater to
3|Chapter three
43
local consumer habits and financial systems. For example, Swish in Sweden, Twint in
Switzerland, Satispay in Italy, Blik in Poland, and MB WAY in Portugal emerged as key
players in their respective markets. These wallets have often been developed in close
partnership with local banks and payment providers, making them more deeply integrated
into their country’s financial ecosystem than their global counterparts. However, the
investigation also revealed significant gaps. In some countries, such as Slovakia, little
evidence of strong local digital wallets was found, with global solutions filling the gap
instead. This highlighted differences in financial infrastructure, consumer trust, and
regulatory support for digital payments across Europe.
To ensure the findings were structured and reliable, a clear research process was
followed:
1. Identifying wallets: A list of the most widely used digital wallets globally was
compiled, along with research into the digital wallets available in each European country.
2. Gathering data: Industry reports, regulatory documents, and company
websites were reviewed to collect information on wallet operations, key features, and
adoption levels.
3. Comparing findings: Similarities and differences between global and local
wallets were analyzed, focusing on factors such as user experience, security measures, and
integration with financial systems.
4. Validating insights: The findings were cross-referenced with existing
literature and reports to ensure accuracy and reliability.
By combining a global analysis with a country-specific deep dive, a detailed picture of
the European digital wallet landscape was painted. This approach allowed for the
identification of the most widely used wallets and an understanding of the factors driving
adoption in different regions. The findings from this research provide the foundation for the
following chapters, where the variables that differentiate these wallets, their security
features, and their role in the evolving digital payments ecosystem are further explored.
4|Chapter four
44
4 Chapter four: Analysis & Results
4.1 Analysis techniques
This study employed a descriptive analysis technique to evaluate and compare the
functionalities of 73 digital wallets from the census built: PayPal, Apple Pay, Google Pay,
Zelle, Venmo, Cash App, Samsung Pay, NexiPay, Skrill, Revolut, N26, Wise, Swish,
Satispay, PostePay, Blik, Bizum, Klarna, Amazon Pay, Vipps MobilePay, Twint, MB Way,
Neteller, WeChat Pay, Alipay, BancomatPay, Ipaymix, Paynet, Runpay, Wero, iDEAL,
Netopia MobilPay, mBills, Paylib, Lydia, AirCash, KEKS Pay, Moey, PaysafeCard ,
AUSTRIACARD's Mobile Wallet, RaiPay, Myiute Digital Wallet, Myandbank, Bancontact,
Kuady, Paysend, Paysera, Curve , Vivid Money, Barion, Bluecode, Borica, DIAS, iCard, A1
Wallet, Phyre, Garmin Pay, Swatch Pay, Nordea Wallet, Orange Cash, RoPay, Payconiq,
Lyf Pay, BT Pay, Valù, George, GrabPay, MuchBetter, Bnext, Jeton,
Paytailor, Yetypay, My Air.
Descriptive analysis is a method used to summarize and describe the characteristics
of a dataset, allowing for a clearer understanding of patterns, trends, and comparisons. The
goal was to identify key features across these wallets, categorize them based on
functionality, and provide insights into the prevailing trends within the digital wallet
market. A percentage-based approach was used to measure the prevalence of each feature
and functionalities among the wallets. Then, based on these numbers, we made a
comparative analysis and analyzed trends.
The analysis was structured around eight key dimensions, reflecting the core
research questions:
• Types of wallets - comparing what types of wallets (staged vs. pass-through)
are more in demand in Europe.
• Top-up methods - comparing how users fund their staged digital wallets,
focusing on IBAN transfers, card top-ups, and cash deposits.
• P2P transactions - examining how digital wallets facilitate peer-to-peer money
transfers and their role in driving adoption across different European markets.
• Payment technologies - comparing the prevalence and adoption of NFC, QR
codes, and other digital payment methods across different wallet types.
4|Chapter four
45
• Online payments - evaluating the role of digital wallets in online transactions
and their alignment with emerging consumer trends.
• Intercountry availability - identifying factors that influence whether digital
wallets expand across multiple European markets or remain localized.
• User verification methods - analyzing the types of identification and
authentication processes used by digital wallets.
• Additional services in digital wallets - exploring the financial services offered
beyond payments, such as bill payments, ATM withdrawals, savings features, investment
options, and cryptocurrency support.
1. Type of wallets
The following aspects were analyzed:
The percentage distribution of staged wallets and pass-through wallets among
analyzed digital wallets.
The reasons for choosing one type of wallet or another among users in Europe.
2. Top-up methods
The following aspects were analyzed:
The percentage distribution of top-up methods (IBAN transfers, card top-ups, and
cash deposits) across staged wallets.
Trends highlighting the decline in cash top-ups and the growing preference for
digital funding methods.
3. P2P transactions
The following aspects were analyzed:
The availability of P2P features in different wallets.
The ease of peer-to-peer transactions (e.g., requiring only a phone number, email,
or unique identifier).
The impact of P2P adoption on user retention - how important this feature is in
driving customer engagement.
4. Payment technologies
The technological infrastructure of digital wallets is a factor in determining their
usability, security, and adoption rates. The prevalence and functionality of different
payment technologies were examined, including:
NFC (Near Field Communication): Widely adopted by global players like Apple
Pay and Google Pay, allowing contactless payments at POS terminals.
46
4|Chapter four
QR code-based payments: More common in European-localized wallets such as
Satispay and Swish, enabling merchant transactions and P2P transfers via QR scanning.
Multi-channel payment support: Some wallets integrate multiple technologies (e.g.,
Swish and MB WAY support both NFC and QR payments).
This comparison helped understand regional preferences, as some markets favor
QR codes, while others show stronger adoption of NFC-enabled solutions.
5. Online payments
The following aspects were analyzed:
The extent to which wallets support online transactions (e.g., PayPal and Klarna's
"Buy Now, Pay Later" (BNPL) services).
The impact of digital wallets on consumer purchasing behavior - whether offering
a digital wallet payment option increases conversion rates for online merchants.
Given that the majority of the analyzed wallets support online payments, this area
of analysis was crucial for understanding the relationship between digital wallets and the
rise of e-commerce.
6. Intercountry availability
Not all digital wallets expand beyond their country of origin. Some remain
localized due to regulatory barriers, consumer preferences, or limited banking
partnerships.
This analysis focused on:
How digital wallets adapt to local financial infrastructures (e.g., integration with
national banking networks).
Market demand for digital wallets in different countries - comparing the adoption
rates of global vs. local wallets.
7. Verification methods
The following aspects were analyzed:
SIM-based verification - examining whether digital wallets use SIM card
authentication as a form of identity confirmation, ensuring the user's phone number is tied
to the wallet.
Two-factor authentication (2FA) - comparing how wallets implement 2FA through
SMS codes, app notifications, or biometric scans.
KYC (Know Your Customer) procedures - identifying the level of identity
verification required (basic, advanced, or biometric) to access full wallet functionalities.
4|Chapter four
47
This analysis helped understand how digital wallets balance security and
accessibility, as stricter verification methods may enhance security but potentially slow
down user onboarding.
8. Additional services in digital wallets
The analysis of additional services in digital wallets focused on evaluating the
extent to which wallets go beyond basic payment functionalities by offering features such
as bill payments, ATM withdrawals, savings accounts, investment options, and
cryptocurrency support. This helped assess whether digital wallets are evolving into
comprehensive financial platforms, combining traditional banking services with innovative
fintech solutions to enhance user convenience and engagement.
Comparative analysis approach
Once the core features of digital wallets were identified, a comparative functional
analysis was applied to:
• Distinguish global vs. local trends - identifying which features are standard
across most wallets and which are unique to specific markets.
• Assess the dominance of NFC vs. QR code payments - highlighting the regions
where one technology prevails over the other.
• Evaluate business models - understanding how staged wallets (e.g., PayPal,
Wise) differ in adoption from pass-through wallets (e.g., Apple Pay, Google Pay).
Trend and demand analysis
To assess broader market trends, the following aspects were examined:
• The shift from traditional banking systems to digital wallets.
• The growing importance of contactless and QR-based payments in different
markets.
• The increasing role of e-commerce and BNPL services in wallet adoption.
4.2 Analysis of types of wallets
Analysis of 73 digital wallets from census showed that the majority (64.4%) are
staged wallets, while the remaining 35.6% are pass-through wallets. This suggests that most
users prefer wallets with a broader range of features, rather than just basic payment
functions.
48
4|Chapter four
Figure 4.1: Types of digital wallets
Consumers tend to prefer staged wallets due to their enhanced functionality and
convenience. By allowing users to store funds directly within the wallet, staged wallets
facilitate seamless transactions without repeatedly connecting to external bank accounts or
payment cards. This internal balance feature increases usability across multiple merchants
and platforms.
Staged wallets also offer additional services, such as loyalty rewards, cashback
incentives, budgeting tools, and currency conversion, which contribute to a more
comprehensive financial management experience. These value-added features enhance user
engagement and satisfaction compared to the limited payment functionalities of pass-
through wallets.
From a security perspective, staged wallets reduce the exposure of sensitive
banking details during transactions, thereby minimizing the risk of fraud and enhancing
user trust. Moreover, they support offline transactions and cross-border payments,
addressing connectivity challenges and simplifying international purchases.
The strategic design of staged wallets positions them as viable alternatives to
traditional payment cards. By replicating and expanding upon the functionalities of debit
or prepaid cards, they appeal to users seeking a digital-first, versatile financial solution. This
approach not only meets modern consumer demands but also fosters customer loyalty by
creating an integrated financial ecosystem within the wallet.
As the market continues to evolve, the competition among digital wallets has
intensified, and to gain a competitive edge, each player in this space is looking for ways to
4|Chapter four
49
differentiate themselves. This differentiation is achieved through a combination of unique
features, ease of use, seamless user experience, and the ability to attract and retain a broad
user base.
An interesting observation here is the relatively small number of wallets that
implement NFC technology directly. Out of the 47 staged wallets analyzed, only about
feature NFC capabilities. This means that the majority of digital wallets are not aiming or
unwilling to compete in the NFC space and instead rely on third-party solutions such as
Apple Pay, Google Pay, and Samsung Pay for NFC transactions. This indicates a strategic
shift where companies, instead of trying to compete head-to-head with these payment
giants, are instead leveraging established NFC platforms to enable their users to make
payments. This may also be due to the fact that not all digital wallets are designed to support
physical payments at the point of sale.
Another possible explanation is that not all digital wallets are designed to support
physical payments at the point of sale. Some digital wallets are specifically built for online
transactions only. In essence, while pass-through wallets like Apple Pay and Google Pay
will likely continue to dominate in the payments sector due to their simplicity and global
reach, staged wallets can differentiate themselves by offering more specialized services that
appeal to users who want a comprehensive financial solution, rather than just a quick way
to pay.
4.3 Analysis of top-up methods of staged digital wallets
Following the discussion on the classification of digital wallets in Section 3.2, it is
crucial to examine how users fund their staged digital wallets. The ability to top up wallets
conveniently is a key determinant of their adoption and usage. The dataset reveals that the
most common top-up methods for staged wallets are bank transfers (IBAN), cards, and cash,
with IBAN and cards being the dominant options.
50
4|Chapter four
Figure 4.2: Top – up methods for staged wallets
According to the dataset, 46 out of 47 staged wallets (97.9%) support top-ups via
IBAN transfers and card payments, making these the dominant funding methods. In
contrast, cash top-ups are available in only 31 out of 47 wallets (65.0%), showing that while
still used, cash is far less common. For instance, Cash App, Paysafecard, and GrabPay allow
users to add funds via physical cash deposits at specific partner locations. This highlights a
clear trend: most users prefer digital payment methods over physical cash deposits. The
declining use of cash deposits reflects a global shift toward cashless payments. There are
several reasons why cash is becoming a less popular way to top up staged digital wallets:
• Convenience and speed - IBAN transfers, and card top-ups allow users
to add money to their wallets almost instantly, while cash deposits require visiting a
physical location.
• Growth of digital payments - Many people already use digital
banking, so transferring money via IBAN or card is the easiest option.
• Security - Carrying and handling cash comes with risks like theft or
loss, making digital payments a safer choice.
The near-equal prevalence of IBAN transfers and card top-ups (both at 97.9%)
suggests that staged wallets are deeply integrated into the traditional banking
infrastructure. This reliance on formal financial institutions indicates that many staged
wallets function as an extension of existing digital banking services, while still offering
unique features that differentiate them from traditional banking products. Additionally, the
use of IBAN transfers may be particularly prevalent in European countries, where SEPA
(Single Euro Payments Area) facilitates fast, low-cost, and accessible bank transfers.
The analysis of top-up methods for staged wallets highlights a clear preference for
electronic funding methods, with IBAN transfers and card payments leading the way. The
diminishing role of cash in wallet top-ups reflects broader economic and technological shifts
toward a cashless society.
4|Chapter four
51
4.4 Analysis of types of verification
Digital wallets employ various methods to verify user identity and secure
transactions. According to the dataset, the most commonly used verification method is SMS
codes, implemented by all analyzed wallets (100%). Other prevalent methods include email
verification (75.3%), passport or photo ID checks (54.8%), and address proof (52.1%). Less
frequently, wallets require bank account verification (49.3%) or face verification (19.2%).
Figure 4.3: Types of verification
SMS codes (100%): All digital wallets use SMS codes as a primary form of
authentication. This method requires users to download the wallet app on their mobile
devices and have a valid SIM card from the country where the wallet operates. The reliance
on SMS codes highlights their effectiveness in linking a user’s identity to their phone
number, ensuring an additional layer of security.
Email verification (75.3%): 55 out of 73 digital wallets also use email verification to
confirm a user's identity during registration or transaction authorization, adding another
secure communication channel.
Passport or Photo ID (54.8%): More than half of the wallets request official
identification, such as a passport or photo ID, as part of their Know Your Customer (KYC)
processes, ensuring compliance with anti-money laundering (AML) regulations.
52
4|Chapter four
Address proof (52.1%): 38 out of 73 wallets ask for documents like utility bills or
bank statements to verify a user's residential address, further aligning with KYC
requirements.
Bank account verification (49.3%): Nearly half of the wallets connect directly to
users' bank accounts, either to fund the wallet or to validate their financial identity.
Face verification (19.2%): The least common method, face verification, is used by a
smaller portion of wallets, often as part of biometric authentication for high-security
transactions.
The universal use of SMS codes reflects the critical role mobile numbers play in
digital wallet ecosystems, acting as both a communication tool and a proxy for user identity.
The widespread adoption of email, ID, and address checks underscores wallets’ efforts to
balance convenience with regulatory compliance. Meanwhile, the lower prevalence of
biometric verification suggests that while innovative, these methods are not yet a standard
feature across all platforms.
This analysis shows that digital wallets prioritize easily accessible verification
methods like SMS and email, while integrating more stringent identity checks based on
regional regulations and user needs.
4.5 Analysis of P2P transactions
From the analysis we can see those 61 digital wallets out of 73 support P2P
transactions. One of the main reasons digital wallets, particularly stage wallets, have
become so popular is their ability to facilitate fast peer-to-peer (P2P) transactions. These
wallets allow users to send money to friends, family, or anyone else almost instantly. This
speed and convenience are a stark contrast to traditional banking systems, especially in
Europe, where transferring money can sometimes take several working days, even for small
amounts. Many banks still rely on outdated processes that involve multiple steps of
verification, approvals, and bureaucracy, which slow down the transfer process.
Based on research from the magazine Fintech Future and IMR Tech Solutionson the
“P2P Payments Market for 2024”, for younger generations, who are accustomed to the speed
and efficiency of digital services, the quickness and ease of P2P payments in digital wallets
are a huge advantage. Whether splitting bills, sending money to a friend, digital wallets
provide a seamless, instant solution. This is one of the key reasons why these wallets are
becoming the go-to payment method for younger users.
PayPal, Revolut and Wise are the most popular wallets and financial services in
4|Chapter four
53
Europe today for P2P transfers, thanks to their easy-to-use interfaces and ability to facilitate
instant international transfers at low fees.
To transfer funds, all that is needed is a personal tag, phone number, or email of
the recipient. A personal tag, in particular, serves as a unique identifier in bank transfers for
P2P payments, allowing users to easily find and send money to each other without sharing
sensitive banking details. It functions like a username or handle, simplifying the transfer
process. For example, Cash App: Uses “$Cashtag” (e.g., $JohnDoe123) as a unique identifier
for users to send or receive money; Venmo: Users have personal handles (e.g.,
@SarahSmith); Revolut: Allows users to set a personalized username (e.g., @Mike89).
This eliminates the need to input long account numbers or go through multiple steps,
as is required with traditional bank transfers. With just a few taps, money can be sent
quickly, making digital wallets the go-to choice for fast and hassle-free transactions.
What makes wallets like Revolut and Wise even more unique is their integration
with messaging. Both wallets allow users to send money directly within a conversation,
transforming the way financial transactions are handled. In these wallets, transactions can
be conducted directly within a chat or message thread. This feature streamlines the process,
allowing users to avoid switching between apps or inputting payment details separately.
4.6 Analysis of additional services in digital wallets
Digital wallets have expanded beyond basic payment functionalities, incorporating
a range of financial services to improve user convenience and engagement. The dataset
reveals that the most offered additional services include bill payments (54.8%), ATM
withdrawals (53.4%), and savings features (24.7%), while fewer wallets provide investment
options (15.1%) and cryptocurrency support (13.7%).
54
4|Chapter four
Figure 4.4: Additional services
Bill payments (54.8%): More than half of digital wallets analyzed allow users to
pay for utilities, rent, and other recurring expenses directly through their accounts. This
aligns with the increasing demand for integrated financial management solutions.
ATM withdrawals (53.4%): A large proportion of wallets provide the option to
withdraw cash from ATMs, indicating that despite the push toward cashless transactions,
access to physical currency remains important for many users.
Savings features (24.7%): Nearly a quarter of digital wallets offer savings accounts
or interest-bearing features, enabling users to store money and earn returns, similar to
traditional banking products.
Investment options (15.1%): A smaller share of wallets support investments in
stocks, bonds, gold, or other financial assets, reflecting a growing trend of integrating wealth
management tools into digital finance platforms.
Cryptocurrency support (13.7%): A limited number of digital wallets facilitate crypto
transactions, such as buying, holding, and transferring digital currencies. This suggests that
while crypto adoption is increasing, it remains a niche feature compared to traditional
financial services.
The widespread availability of bill payments and ATM withdrawals suggests that
digital wallets are increasingly positioned as comprehensive financial management tools
rather than just payment solutions. The presence of savings and investment services, though
less common, indicates a shift toward "super apps" that integrate banking, investing, and
payments into a single platform. Meanwhile, crypto support remains relatively low,
possibly due to regulatory uncertainties and varying adoption rates across different
markets.
4|Chapter four
55
This analysis highlights how digital wallets are evolving to meet diverse consumer
needs, offering a mix of traditional financial services and emerging fintech innovations.
4.7 Analysis of payment technologies in digital wallets
This section analyzes the prevalence of payment technologies - specifically NFC
(Near Field Communication) and QR codes - across 73 digital wallets. This analysis provides
insights into the current trends in digital payment solutions.
Figure 4.5: Distribution of payment technologies
QR codes are the most widely supported technology, with 54.8% of wallets offering
only QR code payments. Examples include Satispay (Italy) and Swish (Sweden), which are
popular for peer-to-peer transfers and in-store payments. NFC is less prevalent, with only
13.7% of wallets supporting only NFC. However, NFC is more common in developed
markets, where contactless payment infrastructure is well-established (e.g., Apple Pay,
Google Pay, Samsung Pay). A smaller percentage of wallets (15.1%) support both NFC and
QR codes, offering users greater flexibility for both online and offline payments. (for
example, MB Way (Portugal) and RoPay (Romania)).
Approximately 16.4% of wallets do not support NFC or QR codes. These wallets often
rely on alternative payment methods, such as: in-app codes; SMS-based codes or peer-to-
peer (P2P) transfers - some wallets are designed exclusively for P2P transfers and do not
require NFC or QR codes for transactions. For example, Bnext (Spain) uses in-app codes for
transactions, allowing users to perform payments and transfers directly within the app.
The data shows that QR codes are significantly more popular than NFC. This can be
56
4|Chapter four
attributed to several factors:
Cost-effectiveness - QR codes are cheaper to implement than NFC, as they do not
require specialized hardware. This makes them accessible to smaller merchants and
startups. Studies indicate that QR codes are becoming increasingly popular in Europe,
attributed to their accessibility and ease of use. For instance, a report by Copenhagen
Economics highlights that implementing a unified European QR code standard could lead
to annual savings of up to €3 billion for merchants and €2 billion for consumers [101].
Moreover, QR codes are widely recognized for their ease of generation and scanning,
making them accessible to a broad spectrum of users and merchants. Their versatility
supports both online and offline payment scenarios, enhancing their appeal. A report by
Payneteasy highlights that QR codes are user-friendly, making them an attractive option for
businesses seeking efficient payment solutions [102].
While NFC is less prevalent globally, it is still widely used in developed markets
where contactless payment infrastructure is well-established. NFC is favored for its speed
and security, making it ideal for in-store transactions. However, its adoption is limited by
the need for specialized hardware, which increases implementation costs. Many digital
wallets integrate with larger payment ecosystems like Google Pay and Apple Pay. This
allows users to link their wallet-issued cards (e.g., Revolut, Wise) to these platforms,
effectively enabling NFC payments even for wallets that do not natively support the
technology. As a result, smaller wallets can leverage the existing NFC infrastructure without
requiring their own proprietary contactless solutions.
4.8 Analyses of online payments feature
Reviewing the functionality of digital wallets shows that 90% of these wallets
support online payments. This widespread adoption of online payment capabilities
highlights a major shift in the way people make transactions today, especially as more
individuals move away from traditional banking and toward more digital-first solutions.
The integration of online payments has become a core feature, making digital wallets not
only relevant but also indispensable for many users.
According to the 2023 European Central Bank report, the retail payments market in
the Euro area exhibited strong trends in the first half of 2023. Non-cash payment
transactions rose by 10.1%, highlighting an accelerating shift towards digital payment
solutions. Card-based payments increased by 15.6%, and notably, contactless card
payments surged by 24.3%, according to data published by the European Central Bank.
4|Chapter four
57
These trends emphasize increasing consumer preference for rapid, secure and convenient
payments options and a broader shift towards digital wallets and innovative technologies
across Europe.
Another important feature of the growing usage of digital wallets in online payments
is the possibility to use the BNPL (Buy now, pay later). BNPL services, for example Klarna,
are reshaping consumer credit, especially among younger demographics accustomed to the
immediacy of digital shopping. The appeal of BNPL lies in its simplicity, aligning well with
the digital-first lifestyle of newer generations.
The ability to make online payments directly through digital wallets significantly
enhances their convenience. Users can now pay for goods and services across e-commerce
platforms, subscriptions, and even digital goods like gaming items or digital media, all
without needing to input credit card details or rely on more traditional methods like bank
transfers. This level of efficiency and speed has played a crucial role in the increasing
popularity of digital wallets.
In addition, it provides:
• Security and convenience: Digital wallets like Apple Pay and Google Pay use
advanced encryption systems, tokenization or biometric authentication, offering secure and
easy online payments without exposing card details or requiring repeated passwords.
• Loyalty and rewards programs: Wallets often offer rewards like cashback or
points on online purchases, encouraging users to make more transactions. For example,
Nexi provides users with loyalty programs that reward them for using the wallet for
everyday purchases.
4.9 Intercountry availability
The census includes 61 wallets created in Europe; these wallets are created in 31
countries in Europe. Some countries have only one wallet, while others have up to five.
From the list of analyzed digital wallets, we observed that some are widely adopted across
58
4|Chapter four
Europe, while others remain primarily local to their respective countries.
Figure 4.6: Map of origin of digital wallets in Europe
This can be attributed to several factors, including market needs, regulatory
environments, consumer preferences, partnerships with businesses and banks.
1. Market demand and consumer behavior
• Widespread adoption: Digital wallets that solve a clear, broad need, like Apple
Pay, Google Pay, or PayPal, tend to become widespread across Europe. These wallets offer
convenient features, such as contactless payments, integration with mobile phones, and
compatibility with many retailers and e-commerce platforms. The simplicity and security
they provide appeal to a wide range of consumers.
• Local preference: Some wallets, like Satispay in Italy, remain local because
they cater to specific regional preferences or needs. Satispay is very popular in Italy due to
its integration with local merchants and familiarity within the country, even though it’s not
as widely adopted elsewhere.
2. Regulatory environment
• Pan-European expansion: Wallets that can navigate the complex regulatory
landscape of the European Union (EU) have an advantage in expanding across borders. The
EU’s Single Market makes it easier for digital wallets to operate across member states, as
they only need to comply with EU regulations on payment services, such as the Payment
4|Chapter four
59
Services Directive 3 (PSD3), which aims to increase competition and security in the digital
payments space.
• Local regulation: Some wallets are limited to specific countries due to
regulatory challenges or the need to comply with national laws. For example, Satispay
initially focused only on the Italian market because it was easier to integrate and partner
with local merchants, and adapting to the EU-wide payment regulations could be a longer-
term goal.
3. Partnerships and merchant acceptance
• Widespread adoption: Global digital wallets, like Google Pay and Apple Pay,
form partnerships with a wide variety of retailers and banks across Europe, which is
essential for widespread usage. These wallets often work with both large international
chains and local merchants, making them more attractive to consumers looking for flexible
payment options.
• Local adoption: Wallets that are regionally focused, such as Nexi in Italy,
usually thrive because they partner with local businesses and banks. These wallets often
provide services tailored to specific national needs, which makes them popular within their
respective countries. For example, Nexi has close ties to Italian banks and focuses on local
payment infrastructure.
4. User experience and language
• Universal appeal: Digital wallets like PayPal and Apple Pay offer simple,
intuitive user experiences that transcend language barriers, allowing them to easily cross
borders. They have the infrastructure and support to localize their apps and services across
different countries in Europe, making it easy for users to switch from one region to another.
• Local customization: Some wallets remain more localized because they focus
on the unique cultural and payment habits of a particular country. For example, Nexi and
Satispay are tailored to local consumer behaviors and integrate easily into daily life, such as
by allowing users to make payments via QR codes, which might not be as popular in other
countries.
5. Competition and market saturation
• Global competitors: Wallets that expand across Europe often face strong
competition from global giants like Apple Pay, Google Pay, PayPal, Revolut, Wise which
already dominate much of the European market. New entrants must offer something unique
to stand out.
60
4|Chapter four
• Local presence: In smaller or more fragmented markets, a local wallet might
thrive simply because it meets the specific needs of that market better than global
alternatives. For example, Bizum in Spain.
6. Innovation and niche markets
• Pan-European expansion: Wallets that support multiple features beyond basic
payments - such as investment tools, currency exchange, or rewards programs - tend to
expand rapidly because they appeal to a broader user base. Revolut and Wise, for example,
have expanded quickly across Europe by offering not just payments, but also global
currency exchange, crypto trading, and financial planning tools.
• Local specialization: Some wallets, like Satispay, differentiate themselves by
offering local services, such as bill payments, grocery shopping, or parking fees, which are
highly relevant to local consumers. This specialization can create a loyal customer base that
may be more difficult to replicate in other regions.
The reasons why some digital wallets become widely spread across Europe, while
others stay local, boil down to a combination of regulatory alignment, partnerships with
merchants, user preferences, regional economic conditions, and competitive pressures.
Global wallets, like Apple Pay and Google Pay, benefit from their ability to cater to diverse
markets with universal features, while localized wallets like Satispay and Nexi thrive by
focusing on specific regional needs and leveraging local partnerships. In the end, the success
of a digital wallet depends on how well it addresses the unique demands and characteristics
of the markets it operates in.
4.10 Future trends
Based on the analysis, it can be assumed that digital wallets will develop rapidly in
the coming years, driven by advancements in technology and changing consumer
behaviors.
1. Expansion of financial services
Digital wallets will continue to expand beyond payment functionalities to provide
a more comprehensive financial management suite. This will include a greater focus on
savings, investment options, and wealth management tools within wallets, transforming
them into "super apps." The rise of open banking, enabled by PSD3 regulations, will further
facilitate this integration, allowing digital wallets to seamlessly connect with various
4|Chapter four
61
financial services. As consumers seek more holistic platforms, digital wallets will become
central hubs for managing personal finances.
2. Increased use of biometric authentication
Biometric authentication, including facial recognition, fingerprint scanning, and
iris recognition, is already integrated into many digital wallets across Europe, offering
enhanced security and user convenience. Looking ahead, the trend is shifting toward
biometric point-of-sale (POS) payments and device-free checkouts, which will further
streamline transactions. For example, in Poland, Mastercard, Empik, and PayEye launched
a pilot program that allows payments with iris and facial recognition, marking the first
Biometric Checkout Program pilot in Europe [103]. Additionally, the "Pay with a Smile"
(PwaS) project, supported by EIT Digital, is developing a payment method for recurrent
customers based on biometric identification, primarily facial recognition. This initiative
aims to integrate state-of-the-art methods and devices to create an innovative solution for
cashless transactions [104].
3. Cryptocurrency and blockchain integration
The integration of cryptocurrencies into digital wallets is expected to grow as
regulatory frameworks around cryptocurrency become clearer across Europe. This will
allow users to store, trade, and make payments with digital assets. Blockchain technology
could also enhance security, transparency, and efficiency in digital wallet transactions.
Furthermore, the rise of central bank digital currencies (CBDCs) could shape this trend, as
European governments explore launching their own digital currencies. The European
Central Bank (ECB) is investigating the potential issuance of a digital euro, which aims to
provide a secure, widely accessible digital form of cash alongside physical money. [105]
Additionally, the European Union is moving forward with its digital ID wallet project,
which will enable secure and efficient digital transactions, potentially integrating with
cryptocurrencies [106].
4. Expansion of Buy Now, Pay Later (BNPL) services
The BNPL trend will continue to grow, especially in the context of younger,
digitally savvy consumers. Digital wallets will increasingly integrate BNPL services,
offering consumers flexible payment options for both online and offline purchases. As
BNPL services gain popularity across Europe, especially in markets like Scandinavia,
wallets that support BNPL will attract a broader user base, especially in regions where
traditional credit cards are less popular.
62
4|Chapter four
5. AI-Powered personalization and automation
Artificial intelligence (AI) will play a significant role in shaping the future of digital
wallets in Europe. Wallets will leverage AI to offer more personalized services, such as
customized spending insights, budgeting advice, and tailored financial products. AI could
also be used for fraud detection and to automate routine financial tasks, such as recurring
bill payments or savings transfers. This personalization will enhance user engagement and
make digital wallets more indispensable for day-to-day financial management.
6. Enhanced merchant integration and loyalty programs
As digital wallets become more integrated with loyalty programs and rewards
systems, users will increasingly be able to earn points, discounts, or cashback when they use
their wallets for payments. Wallets may also partner with retailers to offer targeted
promotions or personalized discounts based on consumer behavior, further enhancing the
value proposition of using digital wallets. The ability to store loyalty cards, coupons, and
rewards directly within the wallet will make them even more indispensable for consumers.
As digital wallets evolve, they will continue to revolutionize the way consumers
make payments, manage finances, and interact with financial institutions. With the
integration of advanced payment technologies, AI-driven personalization, broader financial
services, and regulatory advancements, the future of digital wallets in Europe looks
promising. These wallets will not only simplify transactions but will also become central
platforms for managing and growing personal wealth in an increasingly digital and
interconnected world.
5|Chapter five
63
5 Chapter five: Conclusions
5.1 Key findings and conclusions
This study set out to explore the characteristics and additional services of the most
popular digital payment wallets in Europe, as well as the key features that define and
differentiate them as innovative payment solutions. Through a systematic analysis of census
of 73 digital wallets, the research revealed several critical insights into the European digital
payments landscape.
A census analysis of digital wallets revealed that 64.4% are staged wallets, while
35.6% are pass-through wallets, suggesting a significant preference for wallets that offer
more features beyond basic payments. Staged wallets are favoured by consumers for their
enhanced functionality and convenience. Unlike pass-through wallets, which simply
facilitate transactions by linking to external bank accounts or payment cards, staged wallets
allow users to store funds directly within the wallet, enabling seamless transactions without
the need to repeatedly connect to external sources. This internal balance feature improves
usability across multiple merchants and platforms. Additionally, staged wallets offer a
range of value-added services, including loyalty rewards, cashback incentives, budgeting
tools, and currency conversion, making them more comprehensive for financial
management. These extra features not only enhance user satisfaction but also encourage
greater engagement when compared to the more limited functionalities of pass-through
wallets. From a security standpoint, staged wallets also reduce the exposure of sensitive
banking details during transactions, minimizing fraud risks and fostering user trust.
Furthermore, they support offline transactions and cross-border payments, addressing
issues related to connectivity and simplifying international purchases.
The strategic design of staged wallets positions them as potential alternatives to
traditional payment cards. By replicating and expanding upon the functionalities of debit
or prepaid cards, they cater to users who are looking for a digital-first, versatile financial
solution. This approach aligns with the growing demand for more integrated financial
services, offering a broader set of tools within the wallet. Additionally, staged wallets
contribute to building customer loyalty by providing a comprehensive ecosystem that
supports a range of financial activities, including payments, budgeting, and rewards.
64
5|Chapter five
An interesting observation here is the relatively small number of wallets that
implement NFC technology directly. Out of the 47 staged wallets analyzed, only about 10
feature NFC capabilities. This means that most digital wallets are either not aiming to
compete in the NFC space or are reluctant to do so, choosing instead to rely on third-party
solutions such as Apple Pay, Google Pay, and Samsung Pay for NFC transactions. This
suggests a strategic shift where companies, rather than directly competing with these
established payment giants, are leveraging existing NFC platforms to enable their users to
make payments. Additionally, many digital wallets are not primarily designed to support
physical payments at the point of sale. Instead, they focus more on meeting the growing
demand for online payments, which may explain the lower emphasis on NFC capabilities.
This shift highlights the importance of digital wallets in the broader e-commerce and online
transaction ecosystem. As the market continues to evolve, the competition among digital
wallets has intensified, and to gain a competitive edge, each player in this space is looking
for ways to differentiate themselves. This differentiation is achieved through a combination
of unique features, ease of use, seamless user experience, and the ability to attract and retain
a broad user base.
The analysis reveals that 61 out of the 73 digital wallets examined support peer-to-
peer (P2P) transactions. One of the main reasons digital wallets, particularly staged wallets,
have become so popular is their ability to facilitate fast peer-to-peer (P2P) transactions.
These wallets allow users to send money to friends, family, or anyone else almost instantly.
This speed and convenience stand in contrast to traditional banking systems, where, despite
the existence of instant bank transfers, some transfers can still take several working days. In
Europe, although instant payments are becoming more widely available due to the new
Instant Payment Regulation (IPR), many banks are still adjusting to the increased demand
for these services. In some cases, traditional banking processes, which may involve multiple
verification steps or rely on legacy systems, can still slow down the transfer process for
certain transactions. PayPal, Revolut and Wise are the most popular wallets and financial
services in Europe today for P2P transfers, thanks to their easy-to-use interfaces and ability
to facilitate instant international transfers at low fees. To transfer funds, all that is needed is
a personal tag, phone number, or email of the recipient. A personal tag serves as a unique
identifier in bank transfers for P2P payments, allowing users to easily find and send money
to each other without sharing sensitive banking details.
The ability to top- up wallets conveniently is a key determinant of their adoption
and usage. Analyses reveal that the most common top-up methods for staged wallets are
bank transfers (IBAN), cards, and cash, with IBAN and cards being the dominant options.
46 out of 47 staged wallets (97.9%) support top-ups via IBAN transfers and card payments,
making these the dominant funding methods. In contrast, cash top-ups are available in only
5|Chapter five
65
31 out of 47 wallets (65.0%), showing that while still used, cash is far less common. The
analysis of top-up methods for staged wallets highlights a clear preference for electronic
funding methods, with IBAN transfers and card payments leading the way. The
diminishing role of cash in wallet top-ups reflects broader economic and technological shifts
toward a cashless society.
Analyses of verification methods show that the most used verification method is
SMS codes, implemented by all analyzed wallets (100%). Other prevalent methods include
email verification (75.3%), passport or photo ID checks (54.8%), and address proof (52.1%).
Less frequently, wallets require bank account verification (49.3%) or face verification
(19.2%). The universal use of SMS codes reflects the critical role mobile numbers play in
digital wallet ecosystems, acting as both a communication tool and a proxy for user identity.
The widespread adoption of email, ID, and address checks underscores wallets’ efforts to
balance convenience with regulatory compliance. However, while these methods prioritize
ease and accessibility for users, it is important to note that SMS-based verification alone does
not guarantee security. This raises concerns about potential vulnerabilities, as SMS codes
can be intercepted or spoofed, which may impact the overall security of these systems. The
lower prevalence of biometric verification suggests that while innovative, these methods
are not yet a standard feature across all platforms. This analysis shows that digital wallets
prioritize user convenience through accessible verification methods like SMS and email,
while still integrating more stringent identity checks in response to regional regulations and
evolving security needs.
The analysis of additional services showed that digital wallets have expanded
beyond basic payment functionalities, incorporating a range of financial services to improve
user convenience and engagement. Based on dataset, the most offered additional services
include bill payments (54.8%), ATM withdrawals (53.4%), and savings features (24.7%),
while fewer wallets provide investment options (15.1%) and cryptocurrency support
(13.7%).
The widespread availability of bill payments and ATM withdrawals suggests that
digital wallets are increasingly positioned as comprehensive financial management tools
rather than just payment solutions. The presence of savings and investment services, though
less common, indicates a shift toward "super apps" that integrate banking, investing, and
payments into a single platform. Meanwhile, crypto support remains relatively low,
possibly due to regulatory uncertainties and varying adoption rates across different
markets.
Analysis of payment technologies in digital wallets showed that QR codes are the
most widely supported technology, with 54.8% of wallets offering only QR code payments.
NFC is less prevalent, with only 13.7% of wallets supporting only NFC. However, NFC is
66
5|Chapter five
more common in developed markets, where contactless payment infrastructure is well-
established (e.g., Apple Pay, Google Pay, Samsung Pay). A smaller percentage of wallets
(15.1%) support both NFC and QR codes, offering users greater flexibility for both online
and offline payments. (for example, MB Way (Portugal) and RoPay (Romania)).
QR codes are more cost effective compared to NFC, as they do not require specialized
hardware. Studies indicate that QR codes are becoming increasingly popular in Europe,
attributed to their accessibility and ease of use. While NFC is less prevalent globally, it is
still widely used in developed markets where contactless payment infrastructure is well-
established. NFC is favored for its speed and security, making it ideal for in-store
transactions. However, its adoption is limited by the need for specialized hardware, which
increases implementation costs. Many digital wallets integrate with larger payment
ecosystems like Google Pay and Apple Pay. This allows users to link their wallet-issued
cards (e.g., Revolut, Wise) to these platforms, effectively enabling NFC payments even for
wallets that do not natively support the technology.
Reviewing the functionality of digital wallets shows that 90% of these wallets support
online payments. This widespread adoption of online payment capabilities highlights a
major shift in the way people make transactions today, especially as more individuals move
away from traditional banking and toward more digital-first solutions. The integration of
online payments has become a core feature, making digital wallets not only relevant but
also indispensable for many users.
One of the key findings of this study is the heterogeneity of digital wallets across
Europe. While global wallets such as Apple Pay, Google Pay, and PayPal dominate the
market due to their extensive reach and seamless integration with existing financial
infrastructures, regional and local wallets (e.g., Swish in Sweden, Twint in Switzerland, and
Satispay in Italy) continue to thrive by addressing specific user preferences, regulatory
requirements, and cultural payment habits.
The distribution of digital wallets across Europe is shaped by a combination of
market demand, regulatory environments, consumer preferences, and strategic
partnerships. While some wallets achieve widespread adoption by offering universal
features and navigating complex EU regulations, others remain local by catering to specific
regional needs and leveraging local partnerships. Ultimately, the success of digital wallets
in Europe depends on how well they balance universal appeal with local customization,
navigate regulatory challenges, and build strategic partnerships to meet the diverse
demands of European consumers.
The findings of this study demonstrate that digital wallets have evolved far beyond
their original purpose as simple payment facilitators. Today, they serve as multifunctional
financial platforms, integrating a wide range of services that enhance user convenience,
5|Chapter five
67
security, and financial management capabilities. As digital payments continue to gain
traction, digital wallets will play a central role in shaping the future of cashless economies,
financial inclusion, and secure digital transactions across Europe. The coming years will
witness the convergence of digital identity, embedded finance, open banking, and AI-
powered security, driving the next wave of innovation in digital wallets. Regulatory
developments, such as PSD3 and the EUDI Wallet initiative, will further solidify the position
of digital wallets as essential tools for personal and business finance. However, challenges
remain in ensuring widespread adoption, addressing security concerns, and maintaining
compliance with evolving regulatory frameworks. This research contributes to a deeper
understanding of the European digital payments ecosystem and provides a foundation for
further studies on technological advancements, user behaviour, and regulatory
implications. As digital wallets continue to evolve, their role in transforming the financial
landscape will only become more pronounced, offering new opportunities for innovation,
competition, and enhanced user experiences.
In summary, most digital wallets in Europe are staged wallets, which allow users
to store funds directly within the wallet. These wallets are preferred for their enhanced
functionality and convenience, as they support seamless transactions without the need to
repeatedly connect to external bank accounts or payment cards. Staged wallets also offer a
variety of value-added services, such as loyalty rewards, cashback incentives, budgeting
tools, currency conversion, bill payments, ATM withdrawals, and savings features. Some
even provide investment options and cryptocurrency support, though these are less
common. These additional services position digital wallets as comprehensive financial
management tools, rather than just payment solutions, increasing user engagement and
satisfaction.
On the other hand, pass-through wallets are also widely used due to their
simplicity. These wallets, like Apple Pay and Google Pay, are preferred for their ease of use
and global reach.
To maintain a competitive edge in this dynamic landscape, digital wallet providers
must continue to innovate, focusing on user-friendly interfaces, robust security measures,
new biometric verification methods, and personalized incentives. By doing so, they can not
only meet the evolving needs of consumers but also foster loyalty and drive the adoption of
digital-first financial solutions. AI-powered personalization allows digital wallets to offer
tailored rewards, budgeting tools, and financial insights based on individual behaviour.
Integrating Buy Now, Pay Later (BNPL) services can further enhance functionality by
enabling users to manage large purchases in instalments. Additionally, cryptocurrency and
blockchain integration will become increasingly important, offering decentralized finance
options and secure, transparent transactions. By embracing these innovations, digital wallet
68
5|Chapter five
providers can foster loyalty, meet consumer needs, and drive the adoption of digital-first
financial solutions. Staying ahead of trends and continuously evolving will position wallets
as comprehensive financial tools, not just payment methods.
5.2 Limitations of the study
While this study provides valuable insights into the digital wallet landscape in
Europe, it’s important to acknowledge a few limitations that could affect the findings.
Firstly, there are data limitations that might influence the completeness of the
analysis. Although the study covers 73 digital wallets operating across Europe, capturing a
wide range of platforms, it’s possible that some smaller or niche wallets were not included
due to limited data availability. Additionally, since the fintech world evolves rapidly, new
digital wallets or updates to existing ones might have emerged after the data was collected,
meaning the snapshot provided here may not fully reflect the most current trends.
Secondly, the study faces methodological limitations. The variables selected for
analysis were carefully chosen to align with the research objectives, but they might not cover
every aspect of digital wallet functionality. For example, while the focus was on payment
features, identity verification, and funding methods, other emerging functionalities like AI-
driven personalization or embedded finance features may have been overlooked. Moreover,
since the study takes a quantitative approach, it doesn’t delve into qualitative aspects like
user satisfaction or the personal experiences of wallet users.
There are also theoretical limitations to consider. Since the study focuses
specifically on the European context, the findings may not be directly applicable to regions
with different regulatory environments, cultural payment preferences, or technological
infrastructures. This regional focus means that global comparisons are somewhat limited,
and insights might not translate universally.
Finally, it’s essential to recognize the potential for bias in the data sources and
aggregation methods. Some of the information comes from industry reports or data
published by the wallet providers themselves, which could introduce a degree of bias or
inconsistency. Additionally, variations in reporting standards and transparency among
digital wallet operators might affect the accuracy of the collected data.
By being mindful of these limitations, readers can interpret the study’s findings
with a sense of caution and recognize areas where further research might be necessary to
build a more comprehensive understanding.
5|Chapter five
69
5.3 Suggestions for future development
While this study has provided important insights into the European digital wallet
landscape, there are still several areas that could benefit from further exploration.
One of the most valuable directions for future research would be a closer look at
the adoption trends across different regions. It's clear that some European countries, like
Sweden, the UK, and Germany, are leading the charge when it comes to digital wallet usage,
while others have been slower to adopt. It would be useful to understand the underlying
reasons for these differences—whether it's due to cultural factors, infrastructure, or
regulatory environments. A deeper dive into these trends could offer guidance on how to
increase adoption in countries where digital wallets have yet to gain widespread traction.
Another crucial area for future research is the impact of digital wallets on financial
inclusion. While digital wallets have made banking more accessible for many people, we
still don’t know enough about their impact on unbanked and underbanked populations.
Digital wallets have the potential to reach those who have traditionally been excluded from
the financial system, but there is still work to be done to understand how effectively they
can serve these communities. Research that investigates how digital wallets can improve
access for underserved groups - especially in rural or economically disadvantaged areas -
would be invaluable.
As digital wallets continue to grow, so do the cybersecurity risks associated with
them. With the rise of digital payment methods, cybercrime and fraud are becoming bigger
concerns. Future studies could focus on how digital wallets are adapting to these evolving
threats, exploring the fraud detection mechanisms currently in use and how wallet
providers are working to stay ahead of potential risks. Research into how new technologies,
like artificial intelligence or blockchain, can enhance security could also provide important
insights into keeping wallets safe for users.
The EUDI Wallet initiative, which aims to improve cross-border digital identity
verification, is another area that deserves closer attention. As this initiative is rolled out
across Europe, it will be important to evaluate its effectiveness and see how well it is
adopted by both users and institutions. Future research could explore whether the EUDI
wallet is successfully addressing the challenges of cross-border verification, and if it is truly
improving the user experience.
Regulatory changes are an ever-present factor in the digital wallet world, so
understanding the evolving regulatory landscape is essential. With upcoming changes like
PSD3, it's important to examine how these regulations affect digital wallet providers, the
competitive landscape, and consumer protection. Future research could help clarify the
70
5|Chapter five
impact of new regulations on the industry and offer insights into how wallet providers can
adapt to stay compliant while continuing to innovate.
Lastly, as digital wallets increasingly incorporate emerging technologies like
artificial intelligence, biometrics, and embedded finance, it's essential to explore how these
innovations will shape the future of digital wallets. Research that investigates how these
technologies influence user behaviour, trust, and adoption would provide valuable insights
for both wallet providers and users. Additionally, more qualitative research—such as user
interviews or surveys - could add depth to the findings by capturing personal experiences
and consumer perceptions.
By addressing these areas, future research can offer a more comprehensive
understanding of the digital wallet landscape, helping to shape the next steps in the
evolution of digital payments while ensuring that users' needs and concerns remain at the
forefront.
|Bibliography
71
Bibliography
[1] Kagan, J. (2024, June). Investopedia: What Is a Digital Wallet, from
https://www.investopedia.com/terms/d/digital-wallet.asp
[2] Visa navigate (2023, November): Report Decoding the European Mobile Wallet
Evolution, from https://navigate.visa.com/europe/future-of-money/decoding-the-
european-mobile-wallet-evolution/
[3] World Bank Group, (2024): Annual Report 2024, from
https://documents1.worldbank.org/curated/en/099101824180532047/pdf/BOSIB13bdde89d
07f1b3711dd8e86adb477.pdf
[4] MAXIMIZE MARKET RESEARCH PVT. LTD” (2024, July): Digital Wallet Market -
https://www.maximizemarketresearch.com/market-report/global-digital-wallet-
market/77801/
[5] Winchester, T. & Derrington S.A. (2024, March). Worldpay Global Payments Report 2024:
Digital Wallet Maturity Ushers in a Golden Age of Payments, from
https://corporate.worldpay.com/news-releases/news-release-details/worldpay-global-
payments-report-2024-digital-wallet-maturity
[6] Remit Finder (2024, August): Popular Mobile Wallets in Asia Pacific, from
https://www.remitfinder.com/blog/popular-mobile-wallets-in-asia-pacific
[7] Bureau, I. (2025, January). India Retailing: The future of digital wallets in India’s retail
ecosystem, from https://www.indiaretailing.com/2025/01/13/the-future-of-digital-wallets-
in-indias-retail-ecosystem/
[8] Derrington, S.A. (2024, March). WorldPay: Global Payments Report 2024: Digital Wallet
Maturity Ushers in a Golden Age of Payments, from
https://corporate.worldpay.com/node/6961/pdf
[9] Awanis, C.& Simon K. (2022, December). GSMA: State of the Industry Report on Mobile
Money, from https://www.gsma.com/sotir/wp-
content/uploads/2022/03/GSMA_State_of_the_Industry_2022_English.pdf
[10] Deibele, B. (2022, June). Mastercard: Mastercard New Payments Index 2022: South
Africa’s Appetite for Digital Payments Continues to Grow from
https://www.mastercard.com/news/eemea/en/newsroom/press-
releases/en/2022/september/south-africa-s-appetite-for-digital-payments-continues-to-
grow-mastercard-new-payments-index-2022/
[11] Sulabh, A., Weichert M. & Burr. E., (2022, December). Accenture: Payments Gets
Personal Report by Accenture, from
https://www.accenture.com/content/dam/accenture/final/industry/banking/document/Acc
enture-Payments-Gets-Personal.pdf
72
|Bibliography
[12] Kantar Public, (2023, March): Study on digital wallet features, from
https://www.ecb.europa.eu/press/pr/date/2023/html/ecb.pr230424_1_annex~93abdb80da.it.
pdf
[13] Corporate Finance Institute (CFI), (2023): Digital Wallet, from
https://corporatefinanceinstitute.com/resources/cryptocurrency/digital-wallet/
[14] Gaudelli, R. (2024, October). Prometeo: What are digital wallets and how they've
changed the economy, from https://prometeoapi.com/en/blog/digital-wallets
[15] Kersic, V., Vidovic, U., Vrecko, A., Domajnko, M., & Turkanovic, M. (2023, June).
Orchestrating digital wallets for on-and off-chain decentralized identity management, from
https://ieeexplore.ieee.org/document/10194951
[16] Kraiwanit, T., Limna, P., Wattanasin P., & Moolngearn, P. (2023, December).
ResearchGate: Digital Wallet Adoption: Worldcoin’s Impact on Financial Technology, from
https://www.researchgate.net/publication/376205049_Digital_Wallet_Adoption_Worldcoi
n's_Impact_on_Financial_Technology
[17] Payment Services Directive 3 (PSD3), https://www.payment-services-directive-3.com/
[18] GDPR: General Data Protection Regulation, https://gdpr-info.eu/
[19] European Commission (2024, June): The EU Digital Identity Framework Regulation
Enters into Force, from https://ec.europa.eu/digital-building-
blocks/sites/display/EUDIGITALIDENTITYWALLET/The+Digital+Identity+Regulation+E
nters+into+Force
[20] European Commission (2024): eIDAS Regulation, from https://digital-
strategy.ec.europa.eu/en/policies/eidas-regulation
[21] Regulation (EU) 2024/1183 of the European Parliament and of the Council of 11 April
2024 amending Regulation (EU) No 910/2014 as regards establishing the European Digital
Identity Framework, https://eur-lex.europa.eu/legal-
content/EN/TXT/?uri=celex%3A32024R1183
[22] European Commission (2024): EU Digital Identity Wallet Pilot implementation, from
https://digital-strategy.ec.europa.eu/en/policies/eudi-wallet-implementation
[23] Lee, W. Q., & Thoo, A. C. (2022, June). Extended Technology Acceptance Model for
Digital Wallet Usage. International Journal of Academic Research in Business and Social
Sciences, 12(8), 1490 – 1503), from
https://www.researchgate.net/publication/363042823_Extended_Technology_Acceptance_
Model_for_Digital_Wallet_Usage
[24] Kaheman, D., &Tversky, A. (1979, March). Prospect Theory: An analysis of decision
under risk, from
https://web.mit.edu/curhan/www/docs/Articles/15341_Readings/Behavioral_Decision_The
ory/Kahneman_Tversky_1979_Prospect_theory.pdf
[25] Satybaldy, A., Subedi, A., & Idrees, S. M. (2024). Decentralized Key Management for
Digital Identity Wallets. In Blockchain Transformations: Navigating the Decentralized
Protocols Era (pp. 47-58).
[26] Chuhan, S., & Wojnas, V. (2023, July). Designing and evaluating a resident-centric
digital wallet experience. In International Conference on Human-Computer Interaction (pp.
591-609), from
|Bibliography
73
https://www.researchgate.net/publication/372223803_Designing_and_Evaluating_a_Resid
ent-Centric_Digital_Wallet_Experience
[27] PayPal, https://www.paypal.com/it/home [Online]
[28] Apple Pay, https://www.apple.com/apple-pay/ [Online]
[29] Google Pay, https://wallet.google.com/ [Online]
[30] Zelle, https://www.zellepay.com/ [Online]
[31] Venmo, https://venmo.com/mobile-wallets/ [Online]
[32] Cash App, https://cash.app/ {Online]
[33] Samsung Pay, https://www.samsung.com/it/services/samsung-pay/ [Online]
[34] Nexi Pay, https://www.nexi.it/it [Online]
[35] Skrill, https://www.skrill.com/it/ [Online]
[36] Revolut, https://www.revolut.com/ [Online]
[37] N26, https://n26.com/en-it [Online]
[38] Wise, https://wise.com/ [Online]
[39] Swish, https://www.swish.nu/[Online]
[40] Satispay, https://www.satispay.com/it-it/ [Online]
[41] PostePay, https://postepay.poste.it/prodotti/postepay-digital.html [Online]
[42] Blik, https://www.blik.com/en [Online]
[43] Bizum, https://bizum.com/es [Online]
[44] Klarna, https://www.klarna.com/uk/card/ [Online]
[45] Amazon Pay, https://pay.amazon.com/ [Online]
[46] Vipps MobilePay, https://vippsmobilepay.com/en [Online]
[47] Twint, https://www.twint.ch/en/ [Online]
[48] MB Way, https://www.mbway.pt/ [Online]
[49] Neteller, https://www.neteller.com/en/support/question/12/ [Online]
[50] WeChat Pay, https://pay.wechat.com/zh_hk/index.shtml [Online]
[51] AliPay, https://global.alipay.com/platform/site/ihome [Online]
[52] Bancomat Pay, https://bancomat.it/it/privati/bancomat-pay [Online]
[53] Ipaymix, https://www.ipaymix.com/ [Online]
[54] Paynet, https://paynet.md/en [Online]
[55] RunPay, https://www.runpay.md/ru/ [Online]
[56] Wero, https://wero-wallet.eu/individuals [Online]
[57] iDEAL, https://www.ideal.nl/en/ [Online]
[58] Netopia Payments, https://netopia-payments.com/ [Online]
[59] mBills, https://www.mbills.si/about-mbills/ [Online]
[60] Paylib, https://www.paylib.fr/ [Online]
[61] Lydia, https://www.lydia.me/en [Online]
[62] Air Cash, https://aircash.eu/about-us/ [Online]
[63] Keks Pay, https://www.kekspay.hr/ [Online]
[64] Moey, https://moey.pt/en/ [Online]
[65] PaysafeCard, https://www.paysafecard.com/ [Online]
[66] Austria Card, https://www.austriacard.com [Online]
[67] RaiPay, https://www.rbinternational.com/en/raipay.html [Online]
74
|Bibliography
[68] Iute, https://iute.al/en/get-your-wallet/ [Online]
[69] Myandbank, https://myandbank.com/es/ [Online]
[70] Bancontact, https://www.bancontact.com/en [Online]
[71] Kuady, https://www.kuady.com/en/ [Online]
[72] Paysend, https://paysend.com/ [Online]
[73] Paysera, https://www.paysera.com/v2/en/index [Online]
[74] Curve, https://www.curve.com/en-gb/ [Online]
[75] Vivid Money, https://vivid.money/en-es/ [Online]
[76] Barion, https://www.barion.com/en/personal/barion-wallet/ [Online]
[77] Bluecode, https://www.bluecode.com/en [Online]
[78] Borica, https://www.borica.bg/en [Online]
[79] Dias, https://www.dias.com.gr/ [Online]
[80] iCard, https://icard.com/it [Online]
[81] A1 Wallet, https://www.a1.bg/a1-wallet [Online]
[82] Garmin Pay, https://www.garmin.com/it-IT/garmin-pay/ [Online]
[83] Swatch Pay, https://www.swatch.com/it-it/swatch-pay/how-it-works.html [Online]
[84] Phyre, https://www.phyreapp.com/ [Online]
[85] Nordea Wallet, https://www.nordea.dk/privat/produkter/digitale-services/nordea-
wallet.html [Online]
[86] Orange Cash, https://www.orange.eg/ [Online]
[87] RoPay, https://www.ropay.ro/en/ [Online]
[88] Payconiq, https://www.payconiq.com/ [Online]
[89] Lyf Pay, https://www.lyf.eu/fr/ [Online]
[90] BT Pay, https://www.bancatransilvania.ro/bt-pay [Online]
[91] Valu, https://www.valu.si/ [Online]
[92] George, https://www.csas.cz/en/internet-banking/george [Online]
[93] Grab Pay, https://www.grab.com/ph/pay/ [Online]
[94] MuchBetter, https://muchbetter.com/wallet [Online]
[95] Bnext, https://bnext.es/ [Online]
[96] Jeton, https://www.jeton.com/ [Online]
[97] Paytailor, https://paytailor.com/en/pay-mobile [Online]
[98] YetiPay, https://www.yetipay.pl/index.html [Online]
[99] My Air,
https://play.google.com/store/apps/details?id=cz.airbank.android&hl=en&pli=1 [Online]
[100] Brightmore, D. (2024, July). FinTech Strategy: Top 10 Digital Wallets
Dominating the Market, from https://www.fintechstrategy.com/blog/2024/07/05/top-10-
digital-wallets-dominating-the-market/
[101] Lemberg, A. (2024, July). Copengahen Economics: Standardising QR code
payments in Europe, from https://copenhageneconomics.com/publication/standardising-
qr-code-payments-in-europe/
[102] Gam, B. (2024, January). Payneteasy: NFC Vs. QR Code Payments: Which Method Will
Take Center Stage?, from https://payneteasy.com/blog/nfc-vs-qr-code-payments-which-
method-will-take-center-stage
|Bibliography
75
[103] Marciniak, A. (2024, June). Mastercard: Buy with your eyes, pay with your glance!
Together with Empik and PayEye, Mastercard expands its Biometric
Checkout Program to Poland, from
https://www.mastercard.com/news/europe/en/newsroom/press-releases/en/2024/pay-
with-your-glance
[104] Hattyasy, Z. (2024, July). Digital Finance: Pay with a Smile (PwaS), from
https://www.eitdigital.eu/fileadmin/files/2019/factsheets/digital-finance/Pay-with-a-
smile_Factsheet.pdf
[105] Cipollone, P. (2024, November). European Central Bank Blog: The digital
euro: https://www.ecb.europa.eu/press/blog/date/2024/html/ecb.blog20241101~785751026
d.en.html
[106] Goschenko, S. (2023, November). Bitcoin.comNews: European Union Finalizes Digital
ID Wallet Agreement, Hints at Digital Euro Integration, from
https://news.bitcoin.com/bitcoin-price-analysis-is-a-75k-crash-looming-or-a-90k-breakout-
imminent/
76
List of figures
Figure 1.1: Evolution of digital wallets ........................................................................................ 11
Figure 1.2: Digital wallets market share, by region in 2023 (%) ............................................... 12
Figure 1.3: Digital wallets penetration in Europe, by country in 2022 (%) [2]. ............................... 14
Figure 1.4: The payments landscape evolution ........................................................................... 15
Figure 1.5: Dynamics of using different payment methods in different regions [11]. .......... 15
Figure 2.1: Digital Payments Ecosystem [12]. .................................................................................. 19
Figure 4.1: Types of digital wallets ............................................................................................... 48
Figure 4.2: Top – up methods for staged wallets ........................................................................ 49
Figure 4.3: Types of verification .................................................................................................... 51
Figure 4.4: Additional services ...................................................................................................... 54
Figure 4.5: Distribution of payment technologies ...................................................................... 55
Figure 4.6: Map of origin of digital wallets in Europe ............................................................... 57
|Acknowledgments
78
Acknowledgments
Thank you so much to our families for their support. Thank you to Milan for all the people
we have met here and who have become our friends. Thank you to Politecnico di Milano,
professors, and the entire teaching staff for their knowledge and motivation. Thank you to
Italy for the delicious food, beautiful weather, and endless inspiration - and for welcoming
us with open arms, becoming our home away from home.
