eWallets: The digital gateway transforming payments in emerging markets

Quick summary

• eWallets are steadily overtaking cards and even bank transfers across Africa & the Middle East, Asia, and Latin America—bridging the digital gap in places where banking infrastructure is limited but mobile adoption is strong.

• These solutions are local by design: the Philippines’ GCash, Argentina’s Mercado Pago, Indonesia’s OVO, and Colombia’s Nequi enable instant payments and transfers, often without a bank account.

• Their rise redefines financial participation in regions where legacy rails don't reach, making digital payments as simple as tapping a phone, scanning a QR code, or texting an agent.

• From small market stalls to ride-hailing cars and online shops, eWallets are now indispensable for daily life in emerging markets.

This blog continues our series based on dLocal’s Emerging Markets Payments Handbook 2025.

In emerging markets across Africa & the Middle East, Asia and Latin America, where banking infrastructure is underdeveloped or underserved populations remain excluded, eWallets have become the key to digital participation. Built for mobile phones, they allow users to store value, make payments, and send money instantly—without needing a credit card, banking relationship, or even high-speed internet.

Their flexibility stands out: users can top up via bank transfers, in-store cash deposits, or linked debit cards. Transactions are real-time and available anytime, anywhere. Increasingly, recurring billing, tokenization, and subscription support make them vital for both consumers and businesses looking to expand in digital-first economies.

Where eWallets dominate: meeting local payment needs

eWallets have become the default choice for daily transactions across many emerging markets. Their success lies not only in technology but in cultural fit—they provide a familiar, trusted, and flexible way to manage money in real time:

• GCash (Philippines): Powers over 80M users with bills, shopping, P2P transfers, and financial services, turning a simple app into a financial ecosystem for unbanked populations.
• OVO (Indonesia): A SuperApp combining mobility, retail, and entertainment payments, matching Indonesia’s mobile-first consumers with convenient, integrated services.
• Nequi (Colombia): Mobile-first financial access for informal economy earners, converting feature phones into digital bank accounts with easy top-ups and payments.
• Mercado Pago (Argentina): From marketplace checkout to fintech powerhouse with millions of users, it offers QR payments, credit, savings, and is evolving into a licensed bank.
• Yape (Peru): Led a mobile payment revolution; integrated into food delivery apps, it successfully encouraged cash users to adopt digital payments, demonstrating high approval rates and minimal fraud.

From tap to takeout: the Yape success story in Peru

The most widely used eWallet in the country, Yape transformed mobile payments for everyday transactions, delivering tangible results:

• 20% of transactions came from new users.
• 28% from reactivated users (after 30+ days).
• 61% of former cash users and 18% of card users switched to Yape for speed and convenience.
• A 98.3% approval rate with just 0.0042% fraud.

The integration didn’t just change payment methods—it changed behaviors. For couriers and customers alike, mobile-first payments have become a new habit.

The parallel story: mobile money’s foundational role

Alongside app-based wallets, mobile money continues to push inclusion where smartphones and connectivity remain limited. Kenya’s M-PESA leads the charge, processing around 100M transactions daily and providing efficient digital finance to rural populations. In West Africa, MTN Money and Airtel Money allow communities to pay, save, and borrow through simple text prompts.

With 2.1B mobile money accounts globally, these systems remain vital to increasing accessibility in otherwise underserved regions.

Discover what’s shaping Africa’s payment frontier

Legacy rails replaced

Industry spotlight: sectors powered by eWallets

Adoption is strongest in sectors where speed and convenience are vital:

• Gaming: Penetration ranges from 30% in Argentina to 75% in the Philippines and 74% in Indonesia, reflecting strong engagement in mobile entertainment.

• Retail: Adoption spans 7% in Pakistan to 40% in Argentina, with Vietnam, the Philippines, and Indonesia showing 18%-37% penetration, highlighting wallets’ role in fast, contactless transactions.

• Ride-hailing & delivery: In the Philippines (71%) and Indonesia (43%), digital wallets are the preferred method for quick, on-the-go payments.

• Travel: Use for transportation and hospitality payments ranges from 7% in Turkey to 43% in Vietnam, showing growing acceptance.

• Streaming: They dominate digital subscriptions, with Vietnam (70%), Indonesia (51%), and the Philippines (45%) leading frictionless content payments.

Winning with what already works

Far from passing trends, eWallets and mobile money reflect how millions in emerging markets live, work, and pay. As global companies focus on refining card acceptance, consumers are already using QR codes, SuperApps, and digital wallets. Merchants that adapt to this reality will build loyalty, growth, and real connection with their users.