Digital Wallets Set to Revolutionise Global Finance by 2025

Advanced features and innovations

As digital wallets evolve, a range of advanced features will start to become prevalent among those who adopt digital payments. 

These innovations are not just about improving existing functionalities; they’re about reimagining what a digital wallet can do and how it can integrate more seamlessly into our daily lives.

Apple’s introduction of Tap-to-Pay as part of iOS18 is just the tip of the iceberg. This feature allows iPhones to function as payment terminals, enabling small businesses to accept contactless payments without additional hardware.

Biometric authentication is likely to become standard, with facial recognition and fingerprint scanning providing enhanced security. Some digital wallets are already experimenting with voice-activated payments and augmented reality interfaces for a more immersive shopping experience.

Nicholas Holt of Marqeta says: “When the credit card was established about 70 years ago, it was a groundbreaking development. However, innovation stalled for many years, with static reward structures, such as 1.5% cash back. 

“However, now, we are seeing dynamic rewards being offered, where data is collected about card users to offer individuals bespoke and personalised rewards, and services suited specifically to them.”

Blockchain technology is also set to play a significant role in the future of digital wallets. Cryptocurrency integration is becoming more common, with some wallets allowing users to seamlessly switch between fiat and digital currencies.

The rise of ‘super wallets’ beyond China

While ‘super wallets’ like Alipay and WeChat Pay have dominated the Chinese market for years, their emergence in other regions has been slower. However, by 2025, we may see the rise of similar all-encompassing platforms in other parts of the world.

Pietro Candela of Alipay+ says: “Super-apps were pioneered in China but now they are used by the majority of the population across Asia and Africa.”

These super wallets offer a range of services beyond simple payments, including social networking, ride-hailing, food delivery, and even financial products like loans and investments. 

The perks for consumers are clear: a single app can handle most of their daily needs, from ordering groceries to splitting bills with friends.

Candela elaborates on the potential of super wallets: “Super Wallets enable users to manage, transact, and invest in diverse avenues through a secure virtual infrastructure, and are another example of payment services becoming personalised, digital and embedded into our daily lives.”

However, the rise of super wallets faces several barriers outside of China. Regulatory concerns, particularly around data privacy and financial oversight, pose significant challenges. 

In the European Union, for instance, strict data protection laws may limit the ability of companies to create all-encompassing platforms.

Nicholas Holt of Marqeta explains: “The uptake of Super Wallets elsewhere will depend on each market’s data privacy and ownership laws. 

“Essentially, how new applications look in each country may vary, but the undeniable trend of providers innovating quickly to provide customers with the breadth of services they desire is taking place on a global scale.”

Despite these challenges, the potential benefits of super wallets are driving innovation in this space. 

Candela reveals: “Ant International has developed the Alipay+ Mini Program container, to empower our digital wallet partners around the world to evolve their digital apps into Super Apps. 

“Alipay+ Mini Programs are small mobile applications developed by third parties that allow users to book services, purchase products, and access exclusive discounts and promotions.”