BPC has recently released a comprehensive guide aimed at assisting financial institutions in developing next-generation closed and open-loop wallet ecosystems.
Titled “Essential Guide to Building Closed and Open-Loop Wallet Ecosystems,” the document offers a structured approach for designing, launching, and scaling digital wallet platforms within today’s evolving payments landscape.
With approximately 3.4 billion active users worldwide, digital wallets are responsible for facilitating nearly USD 9 trillion in annual transactions. By 2026, user adoption is projected to reach 5.4 billion, making digital wallets a primary financial tool for almost two-thirds of the global population by 2030.
Key Insights
- The integration of digital wallets with merchants results in an average transaction value increase of 25-30%.
- In Sub-Saharan Africa, mobile wallets processed over 17 billion transactions during the first half of 2024, highlighting the region as a leader in mobile money adoption.
- The Asia-Pacific region, particularly India’s UPI system, now handles more than 16 billion transactions monthly, driven by robust wallet ecosystems.
- In Europe, digital wallets currently account for 44% of e-commerce payments and are expected to grow at an accelerated rate exceeding 20% through 2029.
The guide covers various wallet ecosystem models, including closed-loop systems designed to enhance customer loyalty within brand-controlled networks, and open-loop systems that promote global interoperability by integrating with payment networks such as Visa, Mastercard, and UnionPay.
BPC’s SmartVista platform serves as a robust foundation for creating both closed and open-loop wallet systems. It features a modular, microservices-based architecture, supports multiple currencies and channels, and facilitates simplified integration with global payment networks. By incorporating security features, loyalty programs, and real-time transaction capabilities, institutions can deliver user-friendly, scalable, and compliant wallet solutions.