Scaling digital wallets: unlocking a sustainable path to profitability

Fifteen years ago, digital wallets in emerging markets were simple tools for storing prepaid value and sending small payments. Today, they are gateways to the digital economy, lifelines for the unbanked, and launchpads for broader financial services.

Wallets now offer remittances, cross-border payments, and microlending, transforming how millions interact with money. While growth has been rapid – with users expected to reach 5.8 billion by 2029 – most wallets in emerging markets are still working towards profitability. This white paper explores their evolution into open, interoperable ecosystems offering diverse financial services – on the path to becoming SuperApps.

Our research highlights three strategic priorities for wallet providers:

1. Diversify Revenue Streams

High-yield options like credit and microlending are attractive but risky for fledgling wallets. A more stable route? Cross-border payments and international remittances. With migrant workers sending $620 billion annually, wallets can tap into predictable revenues and higher margins through FX spreads.

2. Innovate Merchant Acceptance

Merchant onboarding drives scale, yet many small businesses lack POS infrastructure. Wallets can bridge this gap with QR codes, Pay by Link, and Tap on Phone – low-cost tools that broaden reach and boost high-margin revenue.

3. Leverage Strategic Partnerships

Collaboration is key. Smaller wallets benefit from partnering with global payment networks and financial services players, gaining scale, interoperability, fraud prevention, and consumer trust. Partnerships also unlock marketing support, advisory services, and co-branding opportunities.

Digital wallets have come far – but the future hinges on sustainability, not just scale. The most successful wallets will be those that create collaborative, interoperable ecosystems - delivering trust, scale, and convenience for consumers and merchants alike.

Download the full white paper now to explore strategies for sustainable growth and innovation.