Many mobile wallets in Europe are struggling with profitability. Incumbent banks and card companies still maintain a dominant position in B2C and in P2P payments margins are slim.
The cross-border payments market is still largely untapped by wallets despite high profitability both in B2C and P2P. Wallets are hesitant to enter the market due to concerns about risks related to AML and also a lack of capital to pre-fund accounts. These concerns can be mitigated by using the latest available technology in cross-border payments, opening up the road to profitability for European wallets.