Digital Wallets Want to Replace Your Apps, Not Just Your Cards

It’s no secret that the world is moving faster. In parallel, the way we move money is evolving just as rapidly.

Over the past decade, digital wallets have gone from niche FinTech novelties to powerful tools reshaping the landscape of global payments. From Gen Z remitting funds to family abroad, to small and medium-sized businesses (SMBs) tapping into global supply chains, digital wallets are becoming a key bridge across borders.

But what’s really powering this adoption isn’t just flashy UX or third-party integrations. The latest PYMNTS Intelligence research in the Global Money Movement data brief, “Global Money Movement: U.S. Edition,” a collaboration with TerraPay, reveals that the modern engine of cross-border digital wallet growth is centered on three deceptively simple features: speed, security and transparency.

Speed Is Becoming Non-Negotiable

Today’s world is one increasingly addicted to real-time gratification, one where “fast” isn’t a perk — it’s an expectation. And when it comes to sending money across borders, slow doesn’t just mean inconvenient; it means costly, risky and sometimes downright disruptive.

Traditional international transfers via banks or legacy money transfer services often take days, weighed down by compliance checks, intermediary fees and outdated infrastructure. In contrast, digital wallets offer near-instantaneous transfers, frequently bypassing traditional banking rails altogether.

According to the report data, more than 53% of U.S. consumers not currently using digital wallets for cross-border payments say speed is the primary factor that would persuade them to start, far ahead of rewards or lower fees. For SMBs, 40% of non-adopters see faster payments as a key motivator for future use.

Security Keeps Users Sticky and Their Funds Safe

Speed may get users in the door, but security keeps them there.

According to the PYMNTS report, over one-third (36%) of U.S. consumers not using digital wallets would adopt them if they were perceived as more secure. Among SMBs, 25% of non-users cite security as a key concern preventing adoption.

While this may seem like a hurdle, it’s actually a moment of opportunity. The perceived risk around digital wallets — particularly for cross-border use — is driven less by actual fraud metrics and more by a lack of standardized trust frameworks.

What consumers and businesses want isn’t just end-to-end encryption or biometric logins. They want clarity: Where’s the money? Who’s holding it? Is it insured? What happens if something goes wrong?

Digital wallets that invest in trust, through things including visible compliance, transparent dispute resolution and verified sender/receiver frameworks, are more likely to win long-term loyalty. And that’s exactly where the next frontier of wallet design is heading.

Read the report: Global Money Movement: U.S. Edition

Transparency Remains the Unsung Hero

Speed and security might be the rock stars, but tracking transparency is quickly emerging as the unsung hero of digital wallet adoption.

U.S. consumers and businesses alike are waking up to the operational and emotional toll of untraceable funds. In an era when an Amazon package can be tracked from warehouse to doorstep, “I don’t know where your payment is” no longer cuts it.

According to the PYMNTS Intelligence report, nearly one-third (33%) of SMBs and 32.9% of consumers looking to adopt digital wallets in the next year say that the ability to more easily track payments is a major reason. This demand for traceability isn’t just about convenience — it’s about accountability.

When money crosses borders, it often crosses multiple regulatory jurisdictions, banking institutions and currency exchanges. This complexity is a fertile ground for delays, fees and confusion. Transparent digital wallets simplify this. They offer status updates, confirmations and historical records — sometimes even real-time receipts — so users know exactly where their money is and when it will arrive.

And this clarity has ripple effects. It streamlines business cash flows. It reduces support calls. It builds trust between senders and recipients. For SMBs juggling global vendors, or gig workers relying on overseas clients, transparency isn’t a bonus — it’s a business necessity.