Digital Wallets Increasingly Dominate Payments, But Cash Maintains A Stubborn Toehold

And the day is coming when Americans will continue their love affair with credit and debit without physical cards — on smartphones, in ecommerce and at point of sale.

Globally, digital payments — especially digital wallets — are poised for continued growth through the end of this decade. While the U.S. is showing similar growth, it lags the global trend and is expected to continue to do so over the same period. Worldwide, by 2030, digital payments are projected to grow beyond $33.5 trillion.

These trends, and more recounted below, have significant implications for financial product design and marketing.

Assessing U.S. Trends Versus Global Trends

By 2030, the share of ecommerce via digital wallets is projected to hit 65% globally and 52% in the U.S. Worldwide, 45% of point-of-sale transactions will be via digital wallet, while in the U.S. this will reach 30%. Increasingly, "cards" will be accounts loaded into digital wallets, with a physical piece of plastic (or metal) no longer routinely provided to users. In the U.S., 40% of digital wallet transactions are funded via credit cards, 25% by debit cards, and 22% via bank accounts.

Read more at The Financial Brand

How a new generation of line of credit products can help small and midsized businesses fuel economic growth and opportunity: BROOKINGS

As industry analysts, political leaders from both sides of the aisle, and researchers at Brookings and other organizations have shown, America is in the early stages of a large-scale industrial transformation. Hundreds of billions of dollars of public and private investment are rebooting our manufacturing, infrastructure, and energy sectors and stimulating growth in emerging industries. If we take the right steps, this transformation could generate broad-based opportunity—not only for large companies, but also for the small and midsized firms that employ most U.S. workers, build wealth for their owners, and drive innovation. 

While much recent attention has focused on the question of how the federal portion of these massive funding flows will change under the Trump administration and a new Congress, the fact remains that small and midsized businesses account for 50% of U.S. industrial production and 75% of the workforce in supply chain industries. With sweeping changes underway—including the deployment of artificial intelligence, the “silver tsunami” of retiring business owners, and new tariffs and proposed tax reforms—the small and midsized business landscape will be reshaped.

Read more at The Brookings Institution

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Walking the Pocketbook Tightrope: How Consumers Are Balancing Uncertainty and Spending

When economic winds shift, so do consumer spending habits. But not always in expected ways.

Amid tariffs, stubborn inflation and higher living costs, many consumers are walking a financial tightrope, juggling everyday expenses with unexpected needs and have-it-now desires. New data from PYMNTS paints a detailed and surprising picture of their evolving financial behaviors. The portrait reveals a recent shift in money management habits and a growing reliance on credit to bridge the gaps in an uncertain environment.

First, some basics. Our latest research underscores a stark divide in how individuals handle their finances, categorizing them broadly as either “planners” or “reactors.”

Planners take a strategic and proactive approach, consistently paying off credit card balances, amassing savings both short term and for the long haul and preparing for future expenses.

Read more at PYMNTS.COM

How Pay-Over-Time Can Help Banks Fight the BNPL Surge

As BNPL providers gain market share, banks aim to strengthen their pay-over-time options. Embedding installment plans at checkout, leveraging customer data for personalization, and forming merchant partnerships can help banks optimize adoption and compete on cost.

Buy Now, Pay Later (BNPL) has gone mainstream — particularly among younger consumers. According to Billtrust’s 2025 Gen Z & Digital Payments Report, BNPL usage among Gen Z jumped from 26% in 2023 to 46% in 2025, a 77% increase in just two years, primarily using it for spending on everyday purchases.

For banks, this shift highlights a challenge. While credit cards still dominate overall spending, BNPL’s influence grows as Affirm and Klarna integrate directly into checkout experiences. Now, banks are ramping up their pay-over-time offerings, with some embedding installment options into credit cards and mobile banking apps.

Read more at The Financial Brand

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MoneyGram Implements Mastercard Move to Facilitate Digital Money Movement

MoneyGram has implemented Mastercard Move, a portfolio of money transfer solutions, to facilitate digital money movement domestically and across borders.

With this integration, MoneyGram customers can use any U.S.-issued Mastercard card to send funds to 38 eligible receiving markets and receive money through nearly 10 billion additional endpoints around the world, the companies said in a Wednesday (April 2) press release emailed to PYMNTS.

MoneyGram and Mastercard plan to increase the number of receiving markets and add more cross-border payment capabilities for MoneyGram customers throughout the year, according to the release.

“Our expanding global network, present in nearly every country, is one of our most valuable assets,” MoneyGram CEO Anthony Soohoo said in the release. “Through strategic alliances like this, we continue to grow our network, advancing MoneyGram’s mission to make cross-border payments seamless, affordable and secure for everyone.”

Read more at PYMNTS.COM

Trust and Convenience Drive Satisfaction with Credit Unions but Overdraft Fees Present Risks, J.D. Power Finds

SchoolsFirst Federal Credit Union Ranks Highest among U.S. Credit Unions

Better interest rates and lower fees offered by credit unions have been a winning combination to earn consistently high satisfaction scores during periods of economic uncertainty. According to the J.D. Power 2025 U.S. Credit Union Satisfaction Study,SM released today, overall satisfaction among credit union members remains unchanged from 2024 at 729 (on a 1,000-point scale). However, satisfaction by age group has changed year over year. Among members under age 40 satisfaction has declined 4 points and is 16 points lower compared with those age 40 and older. For most credit unions, digital interactions and overdraft fees create some challenges, particularly for younger members and those with lower levels of financial health.1

Read more at MORNINGSTAR.COM

'Afraid' buyers are rushing to purchase cars ahead of tariffs

At the Lexus of Route 10 dealership in the New Jersey suburbs, the showroom floor was buzzing more than normal for a weekday at the end of the month, as 25% tariffs on foreign cars are poised to take effect on April 2.

“Well, we're seeing people come in; they want to buy cars because they're afraid,” said Tom Maoli, the owner of Celebrity Motor Car Company, which runs Lexus of Route 10 as well as BMW, Ford, and Mercedes dealerships and a few others. “The average car in the United States of America now sells for $40,000, so you're talking about a $10,000 increase. … They're buying. They want to buy. Now.”

The smooth-talking and sharply dressed dealer claims the average auto payment will go up by a whopping $300 per month.

Read more at AOL.COM

The Instant Payments Digital Divide: Why Some Small Businesses Thrive and Others Struggle

Small -to medium-sized businesses (SMBs) rely on instant payments to improve cash flow, yet their adoption remains far from universal.

Industries with strong digital momentum, such as gaming and the gig economy, are leading the charge, while others reliant on legacy systems face persistent hurdles.

PYMNTS Intelligence research shows that the share of SMBs receiving ad hoc payments via instant methods surged from 20% in 2023 to 32% in 2024. However, this growth is not evenly distributed.

SMBs in digitally forward industries are 45% more likely to use instant pay as their most common method for receiving ad hoc or nonrecurring payments than those in less tech-savvy sectors. This disparity suggests that access — not just demand — plays a role in adoption rates.

Read more at PYMNTS.COM

Car Repossessions Reach Shocking Levels as Loan Defaults Exceed Levels During Great Recession

The current auto market’s milestones are primarily negative

Car repossession rates in 2024 reached their highest level in over a decade at about 1.73 million. During the same year, 2,332,837 Americans defaulted on auto loans, which exceeded the number of defaults during the Great Recession’s peak. Vehicle repossessions, which naturally go hand-in-hand with auto loan defaults, increased 16% from 2023 and 43% from 2022, Bloomberg reports using Cox Automotive Data.

When car repossessions last reached this level 15 years ago, in 2009, America was experiencing the ripple effects of the financial crisis, which lasted from mid-2007 to early 2009. Elevated interest rates and higher car prices are two primary factors contributing to the repossession hike. The average new vehicle price in February was $48,039, representing a 1% year-over-year increase but a 1.3% decrease from January, according to Cox Automotive’s report sourced from Kelley Blue Book data.

Read more at AUTOBLOG

Mastercard Sets Sights Beyond Retail as It Embeds BNPL Into Network

The buy now, pay later pure plays like Klarna and Affirm might get a lot of attention these days. However, card networks have a piece of the BNPL pie as well.

From apparel to electronics to medical bills, today’s shoppers increasingly expect a flexible payment solution at checkout, and for that, no company worth its salt can afford to miss out on the revenue and the customer experience.

The trend certainly has attracted attention at Mastercard. As part of the “Pay Later Unpacked” virtual event at PYMNTS, Seema Chibber, executive vice president of Core Products for the Americas, shared insights into how Mastercard aims to integrate installment and BNPL features more deeply into its network infrastructure, the company’s partnership-driven approach, and the potential to expand BNPL into verticals beyond retail.

Read more at PYMNTS.COM

FDIC eases crypto rules for banks

Banks can engage in crypto-related activities, but must still exercise proper caution, the agency said.

Banks can dabble in cryptocurrency activities without receiving prior approval, the Federal Deposit Insurance Corp. announced Friday.

Still, banks “must adequately manage the associated risks” of engaging in crypto-related activities, according to the Financial Institution Letter, or FIL-7-2025.

The guidance rescinds previous guidance, FIL-16-2022, issued under then-chair Martin Gruenberg, which required financial institutions to notify the FDIC before engaging in crypto-related activities.

“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” said FDIC Acting Chairman Travis Hill in a prepared statement. “I expect this to be one of several steps the FDIC will take to lay out a new approach for how banks can engage in crypto- and blockchain-related activities in accordance with safety and soundness standards.” 

Read more at BANKINGDIVE

Consumers Turn to Credit for Cash Management When Unplanned Expenses Hit, Study Finds

Emergency or unplanned expenses happen to consumers all the time. Some are impulse “wants,” and others are emergency “needs.” Either way, they can be expensive. In the last three months, more than one-third of shoppers spent at least $250 on an impulse purchase, with a median price tag of roughly $500. Typical emergency purchases cost even more.

Naturally, major unexpected expenses fall outside normal budgets, making it difficult for consumers to cover them. For impulse and emergency purchases alike, shoppers are more likely to pay with credit than cash. In fact, our latest research shows that access to credit heavily impacts a shopper’s ability to manage unplanned expenses and remain financially flexible, especially in the face of emergencies.

“Managing Unplanned Expenses: How The Pay Later Economy Fits Consumer Needs,” a PYMNTS Intelligence and Splitit collaboration, examines consumer spending trends for impulse and emergency purchases, focusing on the use of credit. It draws on insights from a survey of 7,078 consumers conducted from Jan. 29 to Feb. 7.

Read more at PYMNTS.COM

5 Key Metrics for Measuring Marketing ROI Beyond Clicks

Banks and financial institutions are shifting marketing measurements from transactional to relational. Embracing more sophisticated metrics can help create better customer connections, experiences and sustainable growth.

In 2025, banks and financial institutions are rethinking how they measure marketing success. While traditional metrics like click-through rates (CTR), conversions, and immediate return on investment (ROI) are valuable, they’re no longer the full story.

There’s been a shift toward more sophisticated measures that capture customer engagement, loyalty, and long-term value. What’s critical for banks moving forward, isn’t just tracking how campaigns perform in the short term but connecting those results to long-term growth.

Tracking the right metrics will shape how well banks adapt and refine their strategies to drive meaningful results.

Read more at The Financial Brand

US consumer confidence deteriorates further in March

STORY: American households continue to lose confidence in their financial futures, according to a survey released on Tuesday.

The Conference Board's consumer confidence index plunged over 7 points in March, more than economists polled by Reuters had expected.

It was the fourth straight monthly decline.

The report's Expectations Index - which is based on consumers' short-term outlook for income, businesses, and jobs - dropped to its lowest level in 12 years, below a threshold that usually signals a looming recession.

Read more at REUTERS

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Fintech Leaders Unveil Five Game-Changing Deposit Tools for 2025

The Federal Reserve may lower its target rate, and it may not. How can banking institutions set themselves up to thrive amidst uncertainty about inflation, the economy, and deposit competition? Here are five approaches you may not have considered.

What does the future hold for inflation and interest rates? And how can banking institutions manage their interest expense and attract depositors at a time when the Federal Reserve could raise or decrease its target rate?

Financial institution executives need the tools to attract and retain deposits by structuring their pricing more effectively and by changing the discussion with depositors entirely.

Read more at The Financial Brand

Walmart shakes up ‘buy now, pay later’ with Klarna partnership

Klarna said it’s now the exclusive BNPL provider for Walmart, but the battle to secure the country’s biggest retailer may not be over.

Klarna shook up the fintech world in March with the announcement that it was becoming the exclusive buy now, pay later (BNPL) provider for Walmart, replacing its competitor Affirm in one of the most sought-after partnerships in the industry.

“This is a game changer,” Klarna CEO Sebastian Siemiatkowski said in a statement. “Millions of people in the US shop at Walmart every day—and now they can shop smarter with OnePay installment loans powered by Klarna.”

OnePay is the Walmart-backed finance app and digital wallet

Read more at RETAIL BREW