From airlines to coffee chains, everyone seems to want their own wallet. But is this fintech gold rush driven by real value — or just fear of missing out?
The Wallet Explosion — From Banks to Brands
Not long ago, a “digital wallet” meant PayPal, Apple Pay, or maybe Google Pay. Today, every ecosystem wants one.
Retailers, ride-hailing apps, streaming services, and telecoms are all building in-app wallets.
Why? Because controlling the payment layer means controlling user behavior. A wallet doesn’t just move money — it captures data, loyalty, and frequency of use. The moment a company owns that transaction moment, it owns part of your daily routine.
In this sense, wallets are no longer a fintech side feature; they’re a strategic weapon.
When Hype Meets Economics
Still, not every company needs a wallet. Building one requires payment licenses, KYC flows, compliance operations, and — most of all — user trust.
For many brands, the economics simply don’t add up. Unless a wallet drives measurable retention or new revenue — through instant cashback, embedded credit, or in-app marketplaces — it risks becoming an expensive toy.
According to industry reporting, dozens of Asian “super-apps” have quietly sunset their wallet features since 2024. Infrastructure is heavy, and the average consumer doesn’t want a separate wallet for every brand.
Where It Does Make Sense
1. Ecosystems with frequent, low-value payments.
Ride-sharing, food delivery, and quick-commerce players benefit most — where seconds matter and payments repeat daily.
2. Platforms that bridge online and offline.
Telcos, transit systems, and retail loyalty programs can use wallets to unify digital IDs, points, and payments into one seamless experience.
3. Financial brands with scalable data plays.
Banks, neobanks, and processors can use proprietary wallets to anchor cross-selling, credit scoring, and real-time analytics.
If your customer opens the app every day — yes, a wallet is worth it.
If not — better stay integrated with Apple Pay or Google Wallet and focus on your core product.
The Shift from “Wallets” to “Embedded Finance”
What’s unfolding now is bigger than wallets.
APIs and open-banking rails make it possible for non-banks to embed payments, credit, or insurance directly into their apps — without owning the full wallet stack.
Smart players no longer ask, “How do we launch our wallet?”
They ask, “Where does financial functionality actually enhance our user journey?”
That’s the line between hype and value creation — and the reason “wallet” may soon become just one of many tools in a broader embedded-finance strategy.