The Rise of Programmable Wallets: A Game Changer in Digital Payments

As digital platforms grow, the ability to process payments at scale becomes a crucial competitive advantage. With transaction volumes increasing, managing the flow of money across a growing network of users, vendors, and service providers while ensuring a smooth customer experience puts increasing pressure on platforms to perform. 

At every stage, there is substantial movement of funds and data that requires flexibility and control. To succeed, platforms need a scalable, unified infrastructure capable of handling high-volume multi-party transactions. This is where having the right wallet infrastructure makes all the difference. 

Today, 30% of global consumer purchases are made via platforms that use wallet-based and instant payment methods. This is a clear sign of growing demand for faster, more seamless transactions. 

From digital to programmable wallets 

Digital wallets have dominated global e-commerce, accounting for nearly half of all online payment transactions last year – a trend set to continue with strong growth through 2030. The likes of PayPal, Apple Pay, and Google Wallet have grown in popularity among consumers, allowing them to store payment information and make online transactions. Even though these types of wallets have improved as payment technology has progressed, transitioning them to smart wallets, they fall short of offering the full capabilities that platforms need to manage and automate money movements. 

That’s where programmable wallets come in. A programmable wallet is a digital financial account that automates money movement based on predefined rules. As platforms scale, they offer more than just a way to store and spend funds; they enable platforms to automate, orchestrate, and control money movement with ease. These wallets can streamline operations, reduce reliance on intermediaries, and transform payments from a backend headache into a powerful competitive edge. 

For example, a programmable wallet embedded in a travel platform could be set up to automatically allocate funds among the key players: the property owner receives their share for rental accommodation, the property manager gets compensated for their services in maintaining and managing the listing, and the booking platform secures its commission fee. Meanwhile, a financial platform can automatically transfer a set amount of money into a savings account or investment fund every payday without the need for the user to manually initiate these transactions. 

This level of automation and flexibility positions programmable wallets as the smarter, more scalable choice for forward-thinking platforms. 

Benefits programmable wallets offer 

Platforms need wallet infrastructure that can adapt as they grow. For those handling large transaction volumes, a programmable wallet provides greater flexibility and control in order to scale faster. However, their value extends beyond payment processing, enabling platforms to automate financial operations, and unlock new revenue opportunities. 

Greater control & flexibility 

Programmable wallets allow platforms to build custom payment flows, giving them more control over the movement of money. This means they can design and automate transactions based on their specific operational needs: from managing payouts, splitting payments, or scheduling transactions. 

For userswho earn money by providing services or products on a platform, programmable wallets offer greater control over finances. An embedded wallet infrastructure enables them to manage their earnings and access funds on demand. 

Multi-currency wallets & FX 

Programmable wallet infrastructure enables platforms to handle FX operations and customise payment flows via APIs as transactions move through the ecosystem, without being restricted by traditional banking or card network limitations. 

This level of control allows businesses to decide exactly when and where FX conversions happen within their payment journey, helping them avoid unnecessary and costly FX fees, something traditional PSPs typically don't offer. 

More tailored payment experiences

Platforms can offer various payment experiences directly in their interface and build more experiences on top of the wallet infrastructure, such as membership deals, gift vouchers, cash advances, pay later options, to drive engagement and unlock new revenue streams. 

Wallet infrastructure should be an essential, inherent part of the platform economy. Traditional payment systems simply can’t keep up with the volume, flexibility, and global scale that platforms demand.

Wallet-based solutions, on the other hand,  handle high transaction volumes and also optimise the payment experience. They enable instant transactions, support loyalty-driven financial models, and keep users engaged within the platform ecosystem.

For this reason, platforms should continue to move away from legacy systems and toward more integrated, flexible, and revenue-generating payment solutions.

Is your platform ready to make the shift?