Thales Says Digital Wallets Enter a Fight for Control and Margins

Why It Matters

Who controls the wallet determines who captures payment revenue, customer data and loyalty—reshaping margins and competitive dynamics for banks, merchants and fintechs. The shift favors dominant platforms that can integrate payments, offers and finance into a single branded experience.

Summary

Thales argues digital wallets have moved beyond simply digitizing cards and smoothing payments to a strategic battleground where providers compete to control the customer journey and boost margins. New wallets vary by provider but share goals of deeper daily engagement, stronger loyalty and improved economics. Some players, such as BNPL firms, bypass multi-issuer models by issuing their own cards and bundling deals to capture more revenue and control. Success will favor firms with large user bases or powerful national brands that can scale reach and trust.

Original Description

Michael Doron of Thales says the next phase of digital wallets will be won by whoever controls the customer journey and helps unit economics.