Discover Global Network is the global payments brand for Discover Financial Services; Discover is the fourth-largest card network in the United States. Founded in 1985, Discover now has more than 60 million cards in circulation in the US, in addition to an extensive merchant and consumer network abroad.

Discover recently released its annual “Fintech State of the Union” Report, which is designed as a regular pulse-check on the fintech ecosystem, including payments-related developments. 

In an interview with The Financial Revolutionist, Katelyn McCarthy, VP of Payments Strategy and Business Development at Discover Global Network, discusses key insights from Discover's report, and shares how this information guides Discover's core decision-making around product and growth:

McCarthy’s analysis further offers actionable takeaways for players competing in the digital wallet space. 

Demand for digital payments is on the rise; for the first time, a majority of consumers made a digital purchase or intend to. This suggests that a growing consumer base is open to using digital wallets for everyday purchases, and has yet to settle on the provider sitting at the top of their wallet.

Technological developments make it simpler for new players to enter the space. “[With] cloud-based infrastructure and APIs… it’s simpler and more straightforward to get solutions in consumers’ hands and into customers’ hands, including banks, vendors, and processors,” McCarthy said.

However, the increased cost of capital has complicated players’ ability to scale. McCarthy anticipates this imperative to force payments players to return to the drawing board, creating, in her eyes, “the next chapter of fintech.” 

And new developments—like more real-time payments and open banking—may make digital wallets only one component of a larger payments ecosystem demanded by consumers. Establishing market share within digital wallets, while also diversifying or tying up with other payments products, may create long-term product success.