This paper originally published March 13, 2017. Revised June 16, 2017.

The U.S. mobile payments environment is expanding, largely driven by the evolution of mobile and digital wallets. It is difficult to keep pace with the constant change and innovation in this market. Many studies have explored consumer mobile wallet awareness, attitudes, behaviors, and adoption, but few have developed a typology of the models. To better understand the landscape, related market developments, and potential opportunities for best practices and standards, the Federal Reserve Bank of Boston’s (FRBB) Payment Strategies group created a cross-functional internal team (wallet team) to better understand the processes, potential risks, and variations of four wallet models through field testing and industry analysis.