Companies that rely solely on traditional bank accounts risk losing control over customer relationships as digital wallets become the primary interface for payments and financial services, according to a new warning from EY.
The consulting firm said businesses across payments, retail and financial services increasingly need to own and operate their own digital wallets rather than depend on third-party banks or payment intermediaries, as customer engagement shifts toward embedded finance and on-chain settlement models.
“Wallets are becoming the new front end of financial services,” EY said, noting that firms that outsource this layer may find themselves reduced to back-end infrastructure providers while others capture the data, brand loyalty and recurring revenue.
The warning reflects a broader industry trend in which wallets are evolving beyond simple payment tools into multi-function platforms that hold identity credentials, loyalty programs, tokenized assets and stablecoins. As a result, control over the wallet increasingly determines who owns the customer relationship.
EY said the rise of digital wallets is being driven by several forces, including real-time payments, the growth of stablecoins, and consumer expectations shaped by mobile-first platforms. In this environment, the traditional bank account is becoming less visible to end users, even as it remains part of the underlying rails.
The shift has implications for both banks and non-financial firms. Banks that fail to offer compelling wallet experiences risk being relegated to regulated utilities, while merchants and platforms that integrate wallets directly into their services can deepen engagement and reduce reliance on external payment providers.
EY also highlighted regulatory considerations, noting that wallet operators increasingly face requirements around custody, consumer protection and anti-money laundering controls. Firms entering the space must balance user experience with compliance, particularly as regulators pay closer attention to stablecoins and digital asset wallets used at scale.
The firm said the transition is already underway in regions where digital payments and crypto adoption are advanced, and is likely to accelerate as tokenized money and programmable payments move closer to mainstream use.
For businesses, the message is clear, EY said: in a world where wallets replace bank accounts as the customer touchpoint, owning the wallet may be essential to owning the customer.