Digital Wallets And Ecommerce

#payments rails across the globe and the models behind them have evolved in three major (but very different) patterns and yet they are converging in certain ways. Let’s take a look. About half a century ago, magnetic-striped cards triggered a payments revolution. Swiping plastic cards at POS merchant terminals conquered the west, with Visa and Mastercard managing the rails and becoming an almost mighty duopoly. Cards made a smooth transition into the digitized #economy by embedding in smartphones (and even turning them into processors) and becoming the springboard for the rise of the #ecommerce. While the west was transitioning from old cards to chips, China was driving its own local payments revolution that erupted at the beginning of the 2000s and transformed the country from a purely cash economy to a #digital frontrunner. Starting from high smartphone penetration and bank account ownership, China essentially leapfrogged the card-based (western) model moving directly to a digital set-up built on e-wallets and QR codes and driven by two private companies (Alibaba and Tencent) that managed to build vast (2-sided consumer and merchant) ecosystems that transformed them into ubiquitous SuperApps. In parallel, a third pole had been developing in other parts of the world: —     The payments revolution in Africa was led by telecoms (being the only infrastructure available) by means of an e-#money set-up based on mobile phones. Companies such as Kenya’s M-Pesa (launched in 2007) managed to provide long needed basic financial services (saving and transferring funds, making payments or accepting government subsidies) to large swaths of the population. —     Countries like India or Brazil developed over the past few years state-sponsored real-time payments infrastructures, powering multiple bank accounts into a single app under A2A and P2P models. India’s Unified Payments Interface (UPI) has over 300 mn monthly active users recording 60% y-o-y growth, whereas Brazil’s Pix, launched only in late 2020, has managed to become the most popular payments’ method with over 150 mn users. These parallel evolutionary developments could hardly have been more different: a robust decades-old, card-infrastructure in the west (monopolized by two private companies), against a digital, wallet-based closed-loop model in China (powered by 2 giant ecosystems), versus public, state-sponsored, open, real-time rails in India and Brazil. Despite their very different origins and set-up, digitization has been acting as a huge convergence driver lately: digital wallets, super-apps, real-time payments and CBDCs (Central Bank Digital Currencies) are only some of the common underlying elements. As payments evolve to their next phase, a new digital infrastructure is in the making, fast bridging seemingly big structural gaps. Opinions: my own, Graphic sources: Credit Suisse, Alipay, Matthew Brenan, BCB, Bacancy, Alicriti

The kiosk economy is EGP 600 billion. Not million. Billion. 600,000,000,000. No invoice. No tax record. No digital trail. Cash at the counter. Wallet to wallet. InstaPay with reason for transfer: Living Expenses. That is what Egypt’s two million informal businesses produce every year. More than half of all private sector establishments. And less than 8% of measured output. 3.9 million economic establishments. Two million of them are informal. No tax registration. No commercial license. No connection to the digital payment infrastructure this country spent a decade building. Those two million businesses are not marginal. Koshk. Maw’af microbus. Farsha in Ataba. Semsar. Gourmet food carts and pop-up markets. The street vendors who serve 117 million people every single day. Now look at the supply side: 55 million Registered e-wallets. 1.1 billion IPN transactions in H1 2025. 2.4 trillion Egyptian Pounds moved on IPN in H1’25. 76.3% financial inclusion rate. 45% year on year cashless transaction growth. The infrastructure works. The rails are fast. The wallets exist. But look at where the money actually moves. Peer-to-peer transfers: 54% of wallet volume, 71% of value. Top-ups and deposits: most of the rest. Purchases at a merchant counter: statistically invisible. 55 million wallets. And almost nowhere to spend them. This is not a technology failure. Egypt has the technology. This is not a consumer failure. Egyptians adopted digital wallets faster than almost any country in Africa. This is an onboarding failure. A cost failure. A last-mile failure. Traditional POS terminals require hardware, maintenance, merchant agreements, and fees that make no sense for a kiosk selling EGP 5 bags of chips. The economics were designed for formal retail. Not for an economy where half of all private businesses are informal. Three weeks ago, the Central Bank of Egypt took a step that could change this. It launched a Soft POS framework that turns any NFC-enabled smartphone into a payment terminal. No hardware. No installation. Just an app. The pilot had a transaction cap of EGP 600. That cap is now lifted. When the cost of giving a merchant a terminal drops from thousands of pounds to zero, the math changes. For a pharmacy in Minya. For a kiosk in Imbaba. For a vegetable seller in Aswan. Egypt does not need more wallets. It needs more places to use them (or alternatively IPN). That is where the next chapter gets written. Not on a conference stage. At a kiosk counter.

Digital Dirham is moving from concept to code - here’s why banks can’t afford to hit snooze (and why wallets could smell opportunity) The Central Bank of The UAE just confirmed a two-tier, intermediated model for their CBDC: it will mint the CBDC, while licensed financial institutions and SVF licensed fintechs run customer wallets My Translation? • Banks stay in the loop… • …but any wallet with the right licence can control the front-end relationship —————— Programmability + Limits → Payments, not deposits The Digital Dirham will be non-interest bearing with tiered holding caps and automatic “reverse-waterfall” top-ups from bank accounts when limits are breached (i.e surplus CBDC auto-sweeps back to your bank account). Which is great for P2P, QR and micro-txns; less great for parking savings Deposits are safer than many feared (CBUAE simulations suggest CBDC could take c.5% of broad money) but payment volumes could potentially migrate fast 💨. For daily spends such as your coffee, taxi, bills, the Dig Dirham’s instant, programmable nature will be superior to cards/cash; also Merchants may prefer it because fees will be close to 0️⃣; consumers will adopt if the checkout experience is frictionless —————— 4️⃣ live use-case pilots are already in-flight: ➖ tokenised real estate ➖ tourist wallets ➖ programmable social benefits ➖ parent/child sub-wallets Combine the above with UAE’s role in mBridge (multi-CBDC cross-border settlement) and you have potentially a regional payments shake-up in the making Digital Dirham might just turn out to be a once in a decade opening for telco & remittance wallets to move from “billpay & remittance app” to “national payment utility” but only if they out innovate banks on UX and ally with them on compliance. —————— Winners (if they act!): ✅ Agile banks that expose CBDC ready APIs, embed wallets in their apps and monetise compliance-as-a-service. Slow banks that wait for “clarity”—they’ll watch fees and customer data flow to nimbler rivals. ✅ Telco & super-app wallets that can bolt a Digital Dirham SDK onto existing UX ✅ Cross-border treasury desks ready for atomic FX via mBridge —————— What banks must do 🏦: ➖ Publish a developer portal for CBDC wallet APIs before fintechs partner with someone else ➖ Stress-test liquidity; even with caps, 3-5% of deposits could drift into Digital Dirham balances overnight ➖ Upgrade AML/analytics for on-chain transaction monitoring (a regulatory must have) Digital Dirham is not a fringe experiment - it’s programmable, retail-ready money that lets any licensed wallet ride centralbank rails. Banks that treat it as “just another payment rail” risk waking up as the utility backend while fintechs and telcos own the customer. Those that seize the distribution and compliance layers will bank new fee pools and be part of the team which writes the playbook for #futureoffinance in the UAE & GCC. #CBDC #DigitalDirham #Fintech #BankingTransformation #UAE

🚀 Boosting Electronic Payment Adoption: Lessons from Tanzania, India, Brazil, and Algeria 🌍 Digital payments are reshaping economies, with emerging markets leading the way. Recent innovations from Tanzania, India, Brazil, and Algeria showcase transformative strategies for accelerating adoption and enhancing financial inclusion. Here’s how these nations are driving change: 🌟 4 Inspiring Strategies 1️⃣ Tanzania – Breaking Barriers with Fee Removal • By eliminating fees on card transactions, Tanzania is paving the way for a cash-lite economy, ensuring digital payments are affordable for consumers and merchants. • Takeaway: Removing financial barriers at the point of use is a simple yet powerful way to encourage adoption. 2️⃣ India – Scaling Through Subsidies • India’s UPI platform, backed by government subsidies, offers zero fees for consumers and most merchants. With over 8 billion transactions monthly, UPI has become a global benchmark for scale and accessibility. • Takeaway: Public investment in digital infrastructure can create a massive, inclusive payment ecosystem. 3️⃣ Brazil – Balancing Low Costs and Sustainability • The PIX system, centralized by Brazil’s Central Bank, provides free transactions for individuals and minimal fees (0.5%-1%) for merchants. This model ensures both affordability and system sustainability. • Takeaway: A modest fee for merchants can sustain growth while driving widespread adoption. 4️⃣ Algeria – Incentivizing Inclusion with Tax Relief • Launching DZ MOB PAY in 2025, Algeria plans to offer free payments for users and merchants. Banks will cover costs through tax offsets, aligning with the nation’s goals for modernization and financial inclusion. • Takeaway: Tax incentives can motivate private-sector participation and foster a modern, inclusive payment ecosystem. 🌍 What Emerging Economies Can Learn To build a thriving digital payment ecosystem, nations can: 1. Eliminate Cost Barriers: Ensure low or nonexistent fees for consumers and merchants. 2. Leverage Public-Private Partnerships: Share costs through subsidies or tax incentives. 3. Prioritize Infrastructure: Develop secure, interoperable systems that scale effectively while earning user trust. 4. Promote Awareness: Educate citizens, especially in underserved areas, to build trust and adoption. 🌟 The Vision for a Cash-Lite Future Affordable, inclusive, and innovative payment systems are the cornerstone of a cash-lite economy. Emerging markets can draw inspiration from Tanzania, India, Brazil, and Algeria to empower citizens, modernize financial systems, and unlock economic potential. 💡 What do you think? Could these strategies work in your country? Let’s exchange ideas and shape the future of payments together! #DigitalPayments #FinancialInclusion #EmergingMarkets #Tanzania #India #Brazil #Algeria #Innovation #CashLiteEconomy

What happens when 1 million street vendors are excluded from the digital economy? This week on the Unlocking Africa Podcast, I spoke with Kosta Scholiadis, Founder and Chief Executive of Street Wallet, a fintech company expanding financial access for South Africa’s informal workers, many of whom have never been able to receive a digital payment before. From coaching football and building technology platforms for young players, to watching the rapid shift towards cashless payments during Covid, he recognised a problem that millions encounter every day. As he explained: “A common problem in South Africa is people cannot pay street traders, informal workers, easily unless they have cash or unless the merchant has a card device, which is very rare.” This insight led to Street Wallet, a simple and accessible service that allows vendors to accept payments without a bank account, without a smartphone, and without data. What stands out is the clarity of its design philosophy. Kosta told me: “The goal should never be product perspective; it should be customer perspective. Remove as many hurdles as possible.” The impact has been clear: → Higher earnings: “We are seeing an average tip of 38 rand,” almost double the amount vendors usually receive in cash. → Reliable cash flow: Vendors receive their cash vouchers the next morning, enabling them to buy stock and trade without delay. → Growing partnerships: Plush Car Wash now uses Street Wallet across more than 30 sites and 300 workers, with payments going directly to the washers rather than intermediaries. → Expansion: The acquisition of Digitip strengthens Street Wallet’s presence in Durban and opens the door to new banking capabilities. Yet beyond the technology lies a deeper intention. Kosta shared a philosophy that shapes the company’s purpose: “There is a beautiful Zulu word, sawubona, meaning ‘I see you’. We want informal workers to feel seen, not just processed by a technology system.” This conversation is a reminder that Africa is not simply adopting digital financial tools. It is creating solutions that reflect its realities and ambitions, and which have the potential to influence the world. If you are interested in fintech, the informal economy, and the future of inclusive innovation in Africa, this is an episode worth listening to. ⬇️ Listen now, link in the comments ⬇️ #Fintech #Africa #DigitalEconomy #FinancialInclusion #InformalEconomy #PodcastHost #UnlockingAfricaPodcast

The Web3 Wallet Revolution: From Key Storage to Super Apps 📱🔑 Wallets are to #web3 what browsers are to #web2. Dune’s insightful 70-page report delves into the “State of Crypto Wallets 205”. 🔶 Here are some key takeaways:  • Wallets are becoming self-contained ecosystems: What began as simple key management has evolved into platforms embedding swaps, staking, quests, bridging, and game discovery, blurring the line between tool and platform. • Activity is surging across all metrics: Whether via embedded DEX routers or smart account interactions, wallets are where crypto's daily activity happens – with embedded swap transactions increasing 10x since 2021 to over 20M weekly. • UX convergence toward seamlessness: Passkeys, gas sponsorship, and chain abstraction are no longer experimental—they're becoming baseline requirements, making complex interactions feel familiar and hopefully closer to our skeuomorphic web2 mental models. • Geographic diversification is accelerating: Emerging markets like Nigeria, India, Vietnam, and Indonesia consistently rank among the top user bases across multiple wallets, highlighting their expanding role as financial access points. Binance’s wallet (with BNB Chain) now executes 80% of tracked swaps, reflecting the power of vertical integration and zero-fee models. • EIP-7702 and Pectra will be catalysts: These upgrades mark a significant milestone, allowing users to temporarily upgrade EOA wallets into programmable smart accounts while preserving compatibility. 💡 Why This Matters: The data confirms my thesis - wallets are becoming the "WeChat of web3". Just as WeChat evolved from messaging to payments, e-commerce, and services, crypto wallets are expanding from storage to becoming the primary interface for all onchain activity. Unlike web2 super apps that extract value and control data, web3 wallets empower users with true ownership, creating a fundamentally different value proposition. For builders, the most strategic allocation of resources may be creating modular infrastructure that seamlessly integrates into wallet ecosystems. For investors: Watch wallet-as-platform plays closely – they're positioned to capture significant value in the next cycle. The boundaries between wallets, dApps, and infrastructure are blurring, and those who understand this convergence will be best positioned for what comes next. What wallet features do you find most valuable? Which wallet do you think has the best shot at becoming the first true Web3 super app? #Web3 #Crypto #Blockchain #DigitalWallets #SuperApps

🌍 𝘿𝙞𝙜𝙞𝙩𝙖𝙡 𝙒𝙖𝙡𝙡𝙚𝙩𝙨: 3 𝘾𝙤𝙧𝙚 𝙏𝙮𝙥𝙚𝙨 — 𝙖𝙣𝙙 𝙬𝙝𝙚𝙧𝙚 𝙩𝙝𝙚𝙮 𝙖𝙘𝙩𝙪𝙖𝙡𝙡𝙮 𝙬𝙞𝙣 Digital wallets are often discussed as one thing. In reality, there are three fundamentally different wallet models — and each dominates different regions for very concrete reasons: regulation, card penetration, infrastructure, and consumer behavior. Below is a concise, architecture-level breakdown. ① 𝙋𝘼𝙎𝙎-𝙏𝙃𝙍𝙊𝙐𝙂𝙃 𝙒𝘼𝙇𝙇𝙀𝙏𝙎 (𝙏𝙤𝙠𝙚𝙣𝙞𝙯𝙚𝙙 𝙘𝙖𝙧𝙙 𝙬𝙖𝙡𝙡𝙚𝙩𝙨) 𝙃𝙤𝙬 𝙞𝙩 𝙬𝙤𝙧𝙠𝙨 • Card credentials are tokenized (DPAN) • Real PAN is never exposed to merchants or terminals • Authorization happens in real time over existing card rails 𝙒𝙝𝙮 𝙞𝙩 𝙬𝙞𝙣𝙨 • Leverages mature card infrastructure • Zero friction for consumers • No balance, no escrow, no float 𝙒𝙝𝙚𝙧𝙚 𝙞𝙩 𝙙𝙤𝙢𝙞𝙣𝙖𝙩𝙚𝙨 • Europe – Apple Pay, Google Pay on EMV & SEPA cards • North America – NFC and cards as default • Oceania – highly card-centric markets Best fit for card-first economies with strong issuing banks. ② 𝙎𝙏𝘼𝙂𝙀𝘿 𝙒𝘼𝙇𝙇𝙀𝙏𝙎 (𝙀𝙨𝙘𝙧𝙤𝙬-𝙗𝙖𝙨𝙚𝙙 / 𝙞𝙣𝙩𝙚𝙧𝙢𝙚𝙙𝙞𝙖𝙧𝙮 𝙬𝙖𝙡𝙡𝙚𝙩𝙨) 𝙃𝙤𝙬 𝙞𝙩 𝙬𝙤𝙧𝙠𝙨 • User pre-loads funds or pays via card or bank • Wallet operator holds funds in escrow • Settlement happens after confirmation (typically T+1) 𝙒𝙝𝙮 𝙞𝙩 𝙬𝙞𝙣𝙨 • Buyer protection and refunds • BNPL and dispute management • Well suited for marketplaces and e-commerce 𝙒𝙝𝙚𝙧𝙚 𝙞𝙩 𝙙𝙤𝙢𝙞𝙣𝙖𝙩𝙚𝙨 • North America – PayPal, Venmo, Cash App • Europe – PayPal and BNPL-driven flows • South America – bridge between banks and merchants Best fit for platform economies and online commerce. ③ 𝙎𝙏𝙊𝙍𝙀𝘿 𝙑𝘼𝙇𝙐𝙀 𝙒𝘼𝙇𝙇𝙀𝙏𝙎 (𝘾𝙡𝙤𝙨𝙚𝙙-𝙡𝙤𝙤𝙥 / 𝙥𝙧𝙚𝙥𝙖𝙞𝙙 𝙚𝙘𝙤𝙨𝙮𝙨𝙩𝙚𝙢𝙨) 𝙃𝙤𝙬 𝙞𝙩 𝙬𝙤𝙧𝙠𝙨 • Users top up an e-money balance • Payments via QR or NFC inside the ecosystem • Instant settlement without card rails in the payment transaction 𝙒𝙝𝙮 𝙞𝙩 𝙧𝙪𝙡𝙚𝙨 • Ultra-low fees • Instant merchant settlement • Works without card infrastructure 𝙒𝙝𝙚𝙧𝙚 𝙞𝙩 𝙙𝙤𝙢𝙞𝙣𝙖𝙩𝙚𝙨 • Asia – WeChat Pay, Alipay • Africa – mobile money and stored-value at scale • South and Southeast Asia – QR-first ecosystems • Middle East – rapidly growing closed-loop adoption • Central Asia – QR-based wallet ecosystems Best fit for cash-heavy and super-app-driven markets. 𝙆𝙚𝙮 𝙄𝙣𝙨𝙞𝙜𝙝𝙩 There is no universal wallet model — only the right operating model for the right market. • Cards → Pass-through • E-commerce → Staged • Super-apps → Stored value 𝘿𝙞𝙨𝙘𝙡𝙖𝙞𝙢𝙚𝙧 All views expressed are my own and represent my personal opinions only; they do not reflect the views of any employer, partner, or organization.

For years, Venezuela quietly prototyped many of the core elements of a modern crypto-enabled financial ecosystem, from the launch of the Petro as a state digital currency in 2018 and early national blockchain initiatives with Russia to the establishment of digital wallets and informal on- and off-ramps connecting blockchain rails with local value chains. These were not isolated experiments but foundational components of alternative financial infrastructure developed in the context of hyperinflation, shrinking access to correspondent banking, and tighter capital controls. What the world is only now waking up to is the scale and durability of that build-out: this parallel digital finance system has been leveraged as a tool of sanctions evasion and oil revenue settlement outside of the U.S. financial system, separately, crypto is also used as a lifeline for ordinary Venezuelans operating in an environment of economic dislocation and limited governance infrastructure. At Inca, we’ve been tracking Venezuela’s evolving fintech and crypto landscape for years (see our post from over three years ago https://lnkd.in/g2Y4BVmV) — analyzing how early state efforts, hybrid digital rails, and informal market adoption interlock to shape risk for global sanctions, compliance frameworks, and financial integrity strategies. Our work helps clients understand not just headlines, but the structural dynamics and emerging risk vectors that these systems create. Vicky Ge Huang writes with exceptional clarity in her The Wall Street Journal article on how Venezuela’s early fintech and crypto infrastructure - built well before today’s headlines - is only now being understood at scale, particularly in its implications for state behavior and parallel financial systems. https://lnkd.in/gQhESzNE

🚀 The Future of Digital Payments in Honduras: Who Will Lead the Transformation? 💳 Honduras is at a turning point. While cash still dominates everyday transactions, the digital payments revolution is gaining momentum. Will the country fully embrace a cashless future, or will infrastructure gaps and regulatory roadblocks hold it back? In my latest analysis, I explore this question through the Strategic Reframing methodology, a futurist model designed to challenge assumptions, identify key uncertainties, and map out potential future scenarios. 🔹 Who are the key players? 💡 Tigo Money – Bringing mobile wallets to the masses through telecom-powered financial services. 💡 BAC Credomatic – Driving digital banking innovation with a strong regional presence. 💡 Banco Atlántida – Leveraging legacy banking with modern fintech solutions. 💡 Ficohsa – Pioneering seamless mobile banking and electronic transactions. 💡 PayPal – Connecting Honduran freelancers and e-commerce entrepreneurs to global markets. But the real challenge isn’t just about technology—it’s about adoption, trust, and access. 🚧 💭 What are the biggest uncertainties? 📌 Rural access: Can digital payments expand beyond urban centers? 📌 Regulations: Will fintech-friendly policies accelerate or slow adoption? 📌 Market dynamics: Can local players innovate fast enough to compete with global platforms? 🌍 Possible Future Scenarios 🔹 A fully cashless Honduras 💡 🔹 A digital divide, where urban areas thrive while rural communities lag behind 🔹 Regulatory bottlenecks that keep cash as king 🔹 Global fintech dominance, sidelining local innovation 💡 Why This Matters: This isn’t just about convenience—it’s about financial inclusion, economic growth, and preparing for a digital future. Honduras has a unique opportunity to shape its own fintech destiny. 💬 What do you think? Which of these scenarios seems most likely? Will local innovators like Tigo Money and BAC Credomatic take the lead, or will international players like PayPal disrupt the market? Let’s discuss in the comments! 💡This article is not only about the future of finance in Honduras, but also is an experiment to learn through applying different futurist tools to countries I know well, in this case, Strategic Reframing. 👥 Tagging some fintech and digital banking thought leaders for their insights: 💯 Jim Marous Brett King Simon Taylor Marcel van Oost Ron Shevlin David M. Brear Bradley Leimer Tamara McCleary Sopnendu Mohanty #Fintech #DigitalPayments #Honduras #FinancialInclusion #Banking #FutureOfMoney #Futurism #Innovation

Africa won the first payments battle by getting money into wallets. The next battle is harder: getting those wallets accepted everywhere commerce happens. That is where the real economics start to change. Merchant acceptance is not just a checkout problem. It determines transaction frequency, settlement quality, SME digitization, and eventually who owns the data layer for credit. My latest piece breaks down why the next winners in African payments will not be decided by P2P scale alone, but by who solves merchant acceptance at the right cost, with the right rails, and with enough interoperability to make digital money usable in everyday commerce. Join the list to ensure you never miss a primary insight, and feel free to forward this to anyone else navigating these markets to help them cut through the noise.