This presentation explores how digital wallets are becoming our new super apps, going beyond payments into power ecosystems for consumer data and engagement

1. CONFIDENTIAL
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Direct Relationships
Horizon Scan
Prepared for P&G
June 2023
Digital Wallets:
The Next Frontier
for Consumer
Engagement

2. CONFIDENTIAL
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Introduction
By 2026, more than 60% of world population will use digital wallets. Digital Wallets are
quickly becoming more than just a way to pay for things and are becoming a one-stop-
shop for identity management, personal data storage, securing our digital tokens and
NFTs, and more.
As the landscape continues to evolve and digital wallets reach mainstream adoption,
they will become the new battleground for consumer engagement and loyalty.
The report looks at:
ü The trends and emerging use cases for digital wallets for direct relationship building
and consumer engagement
ü Case studies from leading brands and how harnessing the power of digital wallets
ü The technology landscape and highlights of the leading digital wallet solutions

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Digital Wallet Adoption on the Rise
News mentions of “digital ID” and “digital identity”
have been increasing steadily over the last few years.
Over 60% of Global
Population to Use
Digital Wallets in
2026
https://www.juniperresearch.com/press/digital-wallet-users-exceed-5bn-globally-2026

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Digital wallets are online payment tools, usually in the form of an app. The wallet securely stores virtual versions of debit and
credit cards and conveniently store and access digital tickets and e-vouchers, ensuring the availability of essential documents
whenever required.
Digital Wallet
WHAT IT IS
WHAT ISN’T
Securely store digital versions of payment
methods -- credit and debit cards, and
also gift cards, cryptocurrency, boarding
passes, tickets, passwords and coupons
Integrated Technology: Digital Wallet usually takes
form of mobile apps, integrated with mobile
hardware devices, (NFC), QR, Magnetic secure
transmission (MST) and security methods such as
tokenization.
Commercial Features: extract real-time data
for valuable insights into a customer's
shopping habits, including their shopping
history and preferences.
Payment gateways: Digital wallets primarily only focus
on securely storing payment information and facilitating
electronic transactions for users , while payment gateways
act as infrastructure that facilitates the secure processing
and transmission of payment data between merchants,
customers, and payment processors.
Online banking - while digital wallets offer
comprehensive payment capabilities they are not
the online banking service for transferring funds,
and managing accounts,
Virtual Credit Cards - While credit cards facilitate
electronic transactions, in digital wallet they are
tokenized by replacing card numbers with a
digital account identifier that is stored securely on
users' devices.

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Wallets Become our Digital ID
NFTs & Digital
Goods / Tokens
Digital Super Wallets are giving users access to
a much wider range of financial resources,
commerce capabilities, and ability to privately
store personal info. Some features already
available”
● Credit access and BNPL offerings
● Gift card and reward offerings
● In-app shopping
● Loyalty rewards
● Purchase data
● Healthcare records and vaccinations
● Drivers license and ID
● Crypto buying/selling, digital asset
storage

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Wallets remain a fragmented ecosystem
Payments
focused wallets
(2.5B users)
Data & ID Wallets
(early stage)
Web3 Wallets
(68M Users)
A new generation of mobile wallets are
emerging as an all-in-one solution to ID
verification and access management. By
adding scanning and document encryption
to their capabilities, digital ID wallets can
offer a secure virtual storage alternative for a
lot of what is found in physical wallets today.
The standard digital ID wallets of the future
will store payment and purchase info, state
IDs, SSNs, passports, citizenship information,
medical records, home and office keys, and
even biometric information such as
fingerprints and face scans.
Digital wallets are expected to replace
traditional credit and debit cards in the
near future. By combining payments,
banking, personal finance, and e-
commerce in a single platform, PayPal
aims to create an end-to-end financial
ecosystem that users won’t need to — or
won’t want to — leave.
Digital wallets designed for interacting
with Web3 applications, which are
decentralized applications built on
blockchain technology. They enable
users to store and manage their digital
assets, such as cryptocurrencies, NFTs,
and other digital tokens.

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Major Banks and Big Tech are Racing to Win
the Wallet Wars
PayPal’s new services include high-yield
savings accounts, stock and crypto investing
options, and new deposit features. Users: 435
million
Apple Wallet already stores debit and
credit cards, car keys, tickets, and boarding
passes. On top of that, the company has
recently announced plans to launch digital
IDs, allowing users to add their driver’s
licenses and state IDs to their iPhones and
Apple Watches. The ID feature is supported
by TSA checkpoints in 8 states so far, and
the company is planning to expand to
retailers and venues next. Users: 540 million
Wells Fargo, Chase, and BofA are
working on a new digital wallet
product that will allow shoppers to
pay at merchants’ online checkout
with a wallet that will be linked to
their debit and credit cards. While
it’s meant to drive revenue to the
banks, it could also drive collection
of item level purchase information.

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The Merging of Digital Wallets and Web3
MoonPay expands Web3 services
with new retail app.
PayPal Invests in New Crypto Wallet
Software
PayPal invested $52 millions in crypto wallet
company Magic, aiming to facilitate mass adoption
of Web3 with a safe and simple solution. Magic's
wallet creation service allows companies to onboard
new users to Web3 and reach a wider audience,
contributing to the growing number of Web3 use-
cases among global brands.
MoonPay, has launched a retail-facing app, allowing users
to manage multiple crypto wallets and is now venturing
into the NFT market providing solutions for big brands' NFT
drops, aiming to continue adoption within the web3
ecosystem. MoonPay has also partnered with Flowcode to
offer enhanced Web3 solutions that bridge the physical and
digital worlds, enabling real-time data collection and
privacy-compliant user engagement across various
channels, including out-of-home, TV, and print.

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What Digital Wallets Mean for
Brands and Advertising

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Digital Wallets & Web3 Can Revolutionize CRM
WRM is the new buzzword (Wallet Relationship Management)
The next evolution of the internet requires a new kind of marketing
where wallet-based data,
insights, automation and connectivity are central to driving growth.
That’s Wallet Relationship Management.
Digital Wallets are the New Cookies
Like a cookie, a wallet is a unique, anonymous identifier. Applications
can create wallets on a user’s behalf and append metadata, just like a
cookie. In addition, a user can exert influence and control over each.
Better than a cookie, the wallet records purchases on-chain and makes
them public. Imagine being able to segment and target based on
millions of users’ purchasing history in real-time.
Wallets can solve data privacy issues
With growing concerns over privacy, wallets are emerging as a more
secure and private way to store user information which gives
consumers control over how their data is shared and used.
“A crypto wallet today is going to
replace many, many things that
existed in web2 first. The way we
connect to services online,
internet services through email,
and these complicated
passwords and approaches we
use … that as well can be replaced
by a wallet.”
Samir Addamine, co-founder and
CEO of Absolute Labs.

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Salesforce Believes the Wallet is the New Cookie
● Salesforce has launched Salesforce Web3, an NFT management
platform to help its clients create token-based loyalty programs.
● Businesses can mint and sell NFTs, monitor blockchain activity, and
view real-time customer data on Salesforce Web3, which launched
with subscription tiers.
● The roll out comes after a pilot program of 257,000 transactions with
Salesforce clients such as whisky brand Crown Royal, clothing brand
Scotch & Soda, and Mattel,
● The company is also working with global consulting partners like
Accenture and Deloitte Digital and digital agencies and strategy
consultants to help businesses implement web3 and experiment
with blockchain, digital wallets, and NFT minting.
● Built in consent of privacy tools to enable wallet owners to share all
their information if they want or just a little information.
New Web3 platform helps brand create connected customer
experiences in web3
“One of the most interesting and
powerful things is access to first-party
data. As regulations shift and Apple
changes the rules around cookies,
Facebook and brands don’t want to
spend all this money with some of
these organizations—the crypto wallet
becomes really powerful so I can
directly engage with a customer and
have access to that first-party data.”
Adam Caplan, GM of Web3
at Salesforce
“We think the wallet is the new cookie,” said
Mathieu. “It’s gonna be embedded in all the
brand’s websites, connecting your wallet.
That’s a new data layer.”

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E.l.f. Cosmetics
Exclusive NFT Loyalty Program integrated into Apple/Google Wallet
● E.l.f. Cosmetics has integrated its new NFT-based loyalty play
— called The Lab and available only to the highest tier of
Beauty Squad members — directly into its existing mobile
app.
● Additionally, the initial NFT users create and mint is
connected directly to a user’s Apple or Google wallet rather
than requiring a separate digital wallet, which is a big step in
making these technologies more accessible to everyday
consumers. It’s as easy as installing a plane or concert ticket;
just click ‘add to wallet,
‘‘This opens up an ‘interactional journey,’
because it’s no longer transaction-based [as
with many loyalty programs]. Those NFTs
create a tokenized profile of that consumer
that’s in their Apple wallet. And because it’s in
the Apple wallet, it’s now locational so I can
reward you, I can message you, I can really
engage with you at different hotspots and
gamify your interactions with my brand.”
Chris Silver, Co-founder of the Web3-based
loyalty platform BambuMet
Partners Blockchain

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YSL Beauty
Web3 loyalty program offers a new take on CRM
● YSL Beauty gained 24,000 new wallet owners through its NFT drop at
Vivatech Paris. They are expanding their loyalty program with collectible NFTs
and have experimented with different NFT collections to test customer
behavior in loyalty programs and customer retention management.
● YSL Beauty's objective with NFT sales is to drive customers to its owned
channels and create a distinct direct-to-consumer experience. To further
explore the potential of NFTs and gather valuable insights, YSL Beauty
launched the second chapter of its NFT launch as a crypto art auction. This
allowed previous NFT holders to purchase new NFTs, providing a continuation
of the NFT experience. The data and knowledge gained from these NFT sales
will shape YSL Beauty's future customer acquisition strategies.
● YSL Beauty also has a web2 loyalty program, YSL Beauty Club, with a larger
membership. They see the potential of web3 technologies to reinvent
customer relationship management and will continue offering the free
"Block" collection to interested customers.
Partners Blockchain
“Web3 as an opportunity to reinvent
customer relationship
management, and it’s not about
duplicating our web2 CRM in web3.
We want to reinvent the link
between users and the brand;
traditional CRM is more based on
purchase behavior, while, with web3,
it will be based on engagement.
With web3, we could have this long-
term, always-on loyalty program
with our community.”
Diane Hecquet, chief digital and marketing
officer at YSL Beauty International

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Scotch & Soda
Creates Soda 3.0 Community
● Dutch fashion brand Scotch & Soda has launched a Web3 powered loyalty
program alongside Salesforce, FLaunt and AE Studio.
● “Club Soda 3.0” builds on Scotch & Soda’s loyalty program debut, Club Soda,
which launched in 2022 to offer members special discounts, early access to
collections and invites to exclusive events.
● Entitled ‘Club Soda 3.0’, the program involves the creation and minting of
non-fungible tokens (NFTs) through Salesforce NFT Cloud, allowing users to
mint, manage and sell the digital art through a “sustainable” platform.
● The launch of the initiative will include minting one of the 1,000 Founder’s
Pass NFTs, which will serve as a point of entry to exclusive experiences, events
and offers . Members can further join the Web3 community through their
public cryptocurrency wallet address.
● Next to the benefits of Club Soda, the 3.0 project will allow users the
opportunity to collaborate with the brand on special initiatives in a bid to
develop a more inclusive approach to creation in the digital world, Scotch &
Soda said in a release.
Partners Blockchain

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Starbucks Odyssey
Coffee, connection and community
● On December 8, 2022, Starbucks launched the Odyssey Beta experience, powered by
Web3 technology. The experience combines the popular Starbucks Rewards loyalty
program with an NFT platform, enabling customers to earn and purchase digital assets
called "journey stamps" for exclusive experiences/rewards
● Leverages existing 30MM member base - Customers can log in to the Odyssey Web app
using their existing Starbucks Rewards login. This provides a seamless experience and
allows Starbucks to gather more data to better understand their preferences and
behaviors and provide more personalized offerings. Along with linking their Rewards and
Odyssey accounts, Starbucks also manages customers’ digital wallets within Odyssey in
partnership with Nifty Gateway. So customers don’t need to worry about where their
digital collectibles will be stored as it is all embedded into the Odyssey app.
● The Web 3.0 Loyalty program provides a gamified experience that brings a deeper
connection with consumers that spans both physical and digital
Partners Blockchain
Program Results
Today there are ~30,000 members
participating in Starbucks Odyssey
and the program is still in its early
stages. Based on transaction
volume in the first 3 months, if
Starbucks can onboard 5M
customers to Odyssey, they’re
looking at an approximate
transaction volume of $705M,
meaning $70.5M in revenue for
Starbucks.

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● The Adidas’ Confirmed app, where the brand releases its most in-demand products,
will offer preferred access to select drops through NFTs.
● Through collaboration with Tokenproof, a blockchain-based authentication
platform, enables users of the Confirmed app to view and purchase products from
Adidas' web3 project called Into the Metaverse
● The integration of token-gating aims to not only limit access to products but also
provide guaranteed access to specific groups. This new capability is referred to as
"direct to fan" or "direct to collector."
● Millions of CONFIRMED app users can seamlessly connect their wallets using
tokenproof, which verifies if they possess any ALTS x adidas tokens, rewarding
them with exclusive perks. Currently customers interested in using the technology
need both a crypto wallet and the Tokenproof app. Efforts are underway to
streamline the process by embedding a wallet into the Tokenproof app.
● Adidas sees the value in leveraging customer data obtained through the
integration. By connecting their wallets to the Confirmed app, Adidas can
personalize offers and invitations based on the NFTs customers hold, providing a
more nuanced and verified customer relationship management capability.
Adidas
Direct-to-fan strategy
Partners Blockchain

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Technology Landscape & Startup
Disruptors

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$21M to enable brands to
create their own NFT wallets
$16M for its NFT-based loyalty
platform
$10M to Bring Digital
Collectibles to Brands’ Loyalty
Programs
$8 Million Seed Funding to
Empower Web3 CRM
Campaigns
While funding to NFT projects has cooled,
investors have turned their attention to Web3 and
solutions that are helping brands move their
loyalty and CRM programs into web3.
Web3 Loyalty & CRM Funding is Increasing
Top rounds

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Digital Wallets Market Map
Wallets as a Service
Loyalty & Wallet Relationship
Management
Consumer Data & Identity
Wallets
NFT Engagement &
Management Platforms
POAP & NFT Ticketing
Platforms
Web3 Advertising
enables advertisers to offer
crypto rewards for data and
engagement.

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Location
Funding
Founded
Website
Key Features
Brief Description
Absolute Labs
Wallet Relationship Management Platform
San Francisco, CA
$8M
2021
absolutelabs.io
Absolute Labs is a Wallet Relationship
Management (WRM) platform that
offers various solutions to brands for
acquiring, engaging, converting, and
retaining customers.
● Absolute labs, a Wallet Relationship Management™ platform empowers marketers to intelligently build and flawlessly
execute Web3 CRM campaigns to engage with the growing number of Web3 customers.
● WRM has real-time data on 500+ million wallets that can be parsed by any number of criteria, including interests
(psychographics) and behaviors
● The platform provides solutions such as customer acquisition, optimize onboarding, community management, growth,
and performance marketing.
● It enables brands to embrace and leverage wallet data on public blockchains to gain deep data insights, build
actionable segments, and automate cross-channel campaigns, including NFT air drops, nurture social community
engagement, and more.
● Wallets hold the keys to everything Web3, from proving identity to providing access to value-rich brand experiences,
facilitating payments, creating “ownership” opportunities for customers, and more.
● Early brand clients include LVMH, Pernod Ricard and Time

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Location
Funding
Founded
Website
Key Features
Brief Description
Holder
Web3 CRM and Marketing Automation Platform
Indianapolis
$1.2M
2022
holder.xyz
Holder is a CRM and marketing
automation platform for brands and
creators. They help engage and
communicate with customers on the
blockchain.
● Holder Automation Builder platform it is the platform that integrates web2 and web3 data and marketing channels in a
cohesive marketing automation suite. With Holder, companies can manage customer data, track user engagement and
automate marketing processes
● The Holder platform consists of three main components: a wallet data platform, a web3 CRM and a workflow and
automation engine to power marketing and community-building.
● Holder’s automation suite is intended to help businesses drive deeper engagement and loyalty with personalized,
omnichannel customer journeys. These customer journeys can be triggered by real-time events happening on the
blockchain in order to send personalized, automated campaigns and messaging directly to a customer.
● Some of the campaigns Holder customers are already running include community onboarding, welcome campaigns,
win-back campaigns, community engagement, repeat purchases, and post-event experiences.
● Holder serves both traditional consumer brands launching web3 initiatives and web3-native protocols, platforms, and
creators. Its platform also includes a form builder, email marketing, SMS marketing, community management and CRM
capabilities.

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Location
Funding
Founded
Website
Key Features
Brief Description
Caden
Datawallet - Earn & Learn From Your Data
New York
2021
caden.io
Caden helps users download their data
from apps and services into a personal
“vault." Users who consent to share that
data for advertising purposes can earn
the revenue that the app generates
from it.
● Caden is reinventing personal data gathering, measurement, and addressability via an ethically built platform that puts
consumers first by compensating them for their data and empowering them to control it.Caden's vision has attracted
13,000 waitlist users
● For consumers: Caden empowers everyone to take control of their personal data and make money from it. The Caden
mobile app allows users to pull in data on what movies they watch, where they travel, what they buy, etc., and see fun
and insightful analytics on their consumer profiles.
● They can then opt-in to monetizing their data in a variety of ways, creating a passive income stream that never treads on
their privacy.
● For businesses, Caden is an “ethically-sourced” first-party data provider, bringing the most accurate, robust, and
actionable data streams to the open market via Caden’s proprietary Knowledge Graph platform.
● Data can be consumed in anonymized/aggregated ways for alternative data buyers, organized by various Unique IDs for
advertising tech, or made available on an identifiable basis for specific use cases. All of the above requires explicit opt-in
consent from the user.
$6M

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Location
Funding
Founded
Website
Key Features
Brief Description
Hang
Web3 Loyalty Platform
Santa Monica, CA
$16M
2021
hang.xyz
Hang is an all-in-one, no-code
platform to natively create and
manage Web3-powered
subscription programs
● The platform allows brands to create and manage Web3-powered membership programs, taking advantage of
NFTs' liquidity and interoperability. NFT-powered memberships turn customers into stakeholders, incentivizing
loyalty and increasing the value of their membership assets.
● The platform also enables brands to offer rewards and experiences across digital and physical spaces, bridging the
gap between online and offline interactions.
● Hang provides a no-code platform for marketing teams, offering building blocks and integrations to easily create,
track, and manage customized membership programs. Program managers can set up membership rules, add
benefits and rewards, and connect with third-party services.
● Early customers of the platform include Budweiser, Bleacher Report, Pinkberry and music festival group Superfly.

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Location
Funding
Founded
Website
Key Features
Brief Description
Estonia
$25.5M
2014
https://www.arianee.org/
Arianee is on a mission to empower
brands & owners by giving a digital life
to valuable assets, experiences or
communities through NFTs.
● Using blockchain technology to provide greater transparency, data privacy, circularity, as well as brand-consumer
engagement.
● Simple yet effective tools to create a new kind of customer relationship based on ownership : from CRM to ORM
(Owner relationship management)
● With no password required, let owners experience exclusive features such as attending any event or log directly into
your website, the passport being the only proof of ownership needed. Brands can also have their own white-label app
or integrate Arianee’s features in their own apps to control the experience.
● Arianee is working with YSL Beaute and recently formed a partnership with POAP to power NFT-gated events and
proof of attendance
● With over 100 000 users right now it minted 1 million NFTs last year and aims to mint 10 million NFTs this year (aiming
to reach 1 billion users), with more than 50 global brands,
Arianee
NFT Wallet & Loyalty Platform

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Thank You!
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