Operators of e-Wallets and their investors need robust business models that can sustain competitive differentiation and rapidly scale to stand a chance of success. In markets that are well past the tipping point of mass adoption of e-Wallets (such as in Kenya and China), the evidence is clear – this is a winner-takes-all market, in which the top 2 players capture over 80% of the market.
For any operator of an e-Wallet, this should raise alarm bells around how to ensure they emerge on top. And as e-Wallet adoption increases among the banked population, it also raises important strategic questions for the banks themselves, who have much to lose in both payment flows and consumer spend data
