Integration Challenges Persist for Digital Wallets Despite Rising Global Adoption

Author DNSPAY Editorial
Integration Challenges Persist for Digital Wallets Despite Rising Global Adoption
According to a recent study by global money movement firm Thunes and digital payments giant Visa, around 40% of payment leaders report business losses due to cross-border payment issues. The survey, which involved 233 European payment leaders, highlighted conflicting attitudes towards cross-border payment interoperability and digital wallets, revealing numerous challenges firms face when integrating across various markets and systems. Most respondents expressed confidence in their cross-border payment capabilities. However, decision-makers still encounter significant hurdles, including lost business from failing to integrate with both established and emerging payment methods. By 2026, it's projected that 60% of the global population will use digital wallets for daily transactions. Despite this anticipated rapid growth, digital wallets are the most challenging endpoint for cross-border payments, with only 8% of respondents describing them as the easiest to integrate. Although 97% of respondents believe their systems are ‘completely’ or ‘mostly compatible’ with international fund reception, over one-third report losing business due to cross-border payment issues. Chloé Mayenobe, president and COO of Thunes, commented on the findings: “The research shows a very mixed picture. While payment leaders are confident in their abilities, they face major integration challenges, especially with digital wallets. “At Thunes, we address this critical gap by integrating directly with three billion digital wallets worldwide. Electronic wallets are becoming more crucial, providing bank-like services and financial inclusion for the unbanked and underbanked. As commerce continues to digitize, payment interoperability will be essential.” Challenges to Integration Thunes and Visa identified security concerns, payment tracking, and processing speed as the primary challenges in integrating different payment systems. Ed Chandler, head of money movement in Europe at Visa, added: “To meet the needs of individuals and businesses for easy and secure domestic and international money movement, payment interoperability remains a significant challenge beyond traditional methods. “Our goal is to enable money movement from any endpoint to any other endpoint. Instead of creating a new money movement system from scratch, we leverage Visa’s scale and work with partners like Thunes to serve as a single connection point in an evolving ecosystem.” Respondents also expect AI to play a crucial role in improving payment processes, fraud detection, risk management, and customer support. Blockchain technology and digital currencies are seen as promising solutions for facilitating secure, rapid, and low-cost transactions.