Better digital wallets: The superapp wallet of web 3.0

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  Quantumrun Foresight
• December 16, 2022

Insight summary

The demand for a convenient way to manage money and access financial services illustrates the need for better digital wallets worldwide. However, digital wallets are growing beyond simple payment methods into the next decentralized superapp. The long-term implications of better digital wallets could include AI-powered financial assistants and digital wallets that are compatible across platforms.

Better digital wallets context

Digital wallets are apps that allow users to store payment information and credit cards on their smartphones, making it easy to pay online or in-store. Digital wallets can also store money to make payments or withdraw from an ATM. The three most common digital wallet types are closed, semi-closed, and open. A company issues closed wallets to allow customers to only transact with the company. Semi-closed wallets are similar to closed ones but also enable users to make transactions at listed merchants. And banks issues open wallets to allow users to transact with the bank and listed merchants. 

Digital wallets offer several benefits over traditional wallets. For one, they’re considerably more convenient. People don’t have to carry around a bunch of cards or cash; everything is stored on the phone. Digital wallets are also more secure, as payment information is stored on an encrypted server rather than in physical wallets that can be stolen. And finally, they’re more efficient; people can easily make payments without entering information each time.

Additionally, digital wallets are continuing to evolve as technology advances, particularly with the growing adoption of blockchain and web 3.0 solutions. Blockchain is a distributed ledger technology that allows for secure, transparent transactions between parties without needing a third party like a bank or credit card company. Web 3.0 is the next evolution of the Internet and promises to provide users with enhanced security, privacy, and payment features. 

Disruptive impact

A unique class of digital wallets is quickly gaining popularity—the super digital wallet. Unlike regular digital wallets, which store payment information on a mobile device or computer, super digital wallets provide a wide range of financial services, digital ID management, and dedicated virtual assistants. One of the first companies to offer a super digital wallet was Amazon with its Amazon One, allowing users to make payments with their hands or wrists. The device is equipped with advanced artificial intelligence (AI)-driven analytics and personalized user experiences.  

Other companies are quickly following suit. London-based Walletmor launched its payment implants, a biopolymer device that can be inserted under the skin. The near-field communication (NFC)-powered implant allows users to make payments with their hands or wrists. Whereas Flywallet, an Italian company, offers a fingerprint-protected wearable wallet that can store cards, passwords, smart keys, and even digital IDs. Users can choose from the company’s watch, bracelet, or key-ring options. Meanwhile, Coil and PureWrist are two US-based firms that offer digital wallets as watches or wristbands. 

However, despite the growing number of super digital wallets on the market, many consumers are still hesitant to switch from traditional wallets. Three primary reasons for resistance include:

• Cost: Most super digital wallets are significantly more expensive than a mere credit card. 


• Security: Consumers are concerned about the safety of their financial information when it’s stored in a wearable device. 


• Inconvenience: Most super digital wallets require charging and are not always compatible with all devices and operating systems.

Implications of better digital wallets

Wider implications of better digital wallets may include: 

• The rise of AI-powered digital wallet assistants that can serve as personal finance mentors, offering recommendations on spending habits, stocks to invest in, or where to store money.


• Decentralized finance organizations and Metaverse creators working together to make digital wallets compatible across the different platforms to ensure a seamless e-commerce experience.


• Financial service companies and large banks acquiring various fintech startups to lead the future development of the super digital wallet space.


• More governments slowly expanding their digital ID wallet initiatives to combine payment gateways with government services (including tax payment) and identification.


• More developers taking advantage of the open-source environment of web 3.0 to create customized platforms for digital wallets, including cryptocurrency.


• Enhanced user security protocols in digital wallets, reducing the risk of financial fraud and identity theft.


• Retailers adapting their business strategies to integrate with digital wallet technology, leading to faster, more efficient checkout processes and improved customer experiences.


• A shift in government tax collection methods towards direct integration with digital wallets, streamlining revenue collection and reducing administrative burdens.

Questions to consider

• If you own a super digital wallet, what do you like and dislike about it?


• How else do you think better digital wallets may change your personal finance management?