What Industries Are on the Cutting Edge of Payment Innovations?

Some industries have been faster than others to make the most of the opportunities presented by these new payment methods. The likes of iGaming, ecommerce and retail have been quick to adopt them. So, just why is cutting-edge payment technology so popular in these industries? Let me tell you!

A Brief History of Payment Innovations 

Although PayPal was founded back in 1998, it wasn’t until the early 2010s that digital wallets began to be offered throughout industries. They allowed payments to be made without physical cash or cards and prevented users from having to upload sensitive information directly onto sites. They’re also a personal favorite for their quicker transaction times and lower fees! 

Spotting the potential of digital wallets, Google launched their own wallet in 2011, one of the very first digital wallets compatible with mobiles. The likes of Apple and Samsung followed the way and digital wallets became more numerous and popular with users and industries alike. Adoption of digital wallets sped up during the Covid-19 pandemic when using cash became impossible. As of 2024, 57% of American adults own a digital wallet and they accounted for 53% of online transactions. 

The Rise of Cryptocurrency 

Although it can seem that cryptocurrency sprung up out of nowhere, it actually traces its origins back to a 2008 white paper written by the mysterious Bitcoin creator Satoshi Nakamoto. The very first cryptocurrency transaction took place at the start of the following year between Nakamoto and his software developer friend Hal Finney. 

The first transaction widely considered a real-world commercial purchase with Bitcoin took place on May 22nd 2010, when 10,000 BTC were exchanged for two Papa John’s pizzas. At today’s prices, those coins would be worth over $1 billion

Since then, Bitcoin has sprouted countless crypto spin-offs, such as Ethereum, Ripple XRP and even a new form, memecoins like Dogecoin. As of 2025, Bitcoin is a $2.5 trillion asset and the seventh most valuable asset in the world, showing just how far this innovation has come. 

What Makes Cryptocurrency and Digital Wallets Popular? 

So, just what exactly is behind the growth of these payment innovations? Well, their appeal varies slightly depending on the industry. In iGaming, players enjoy the lower fees that are placed on these digital forms of payments as opposed to bank transfers or card payments. I’ve seen some pretty astronomical fees on traditional payment methods, especially bank transfers, with charges even up to $50. In comparison, our digital payment innovations are usually either fee-free or face only the minimum blockchain charge. 

Faster Transactions 

Another sizable advantage is the faster transaction speeds that payment methods like crypto or e-wallets can offer. Whereas I’ve had to wait days, even weeks on occasion, for payments from cards or transfers to reach my account, digital payment methods can often have the money in your account within just a few minutes or hours. They’re also faster and more convenient for individuals when they’re making payments as there’s no need to type out all of your personal and financial information, instead it’s all saved, making things much smoother. 

What Makes Crypto and Digital Wallets More Secure Methods? 

That brings me on neatly to our next point about safety and security. As I mentioned earlier, there are still many who have concerns about uploading their personal information onto a site. I always find that understandable given the numbers of scam ecommerce sites on the internet. In 2024 alone, it was estimated that $44 billion was lost to online payment fraud. For those with concerns, using a third-party payment method like an e-wallet or crypto means they can avoid having to directly input their details. 

In general, cryptocurrency is well-known as one of the most secure payment methods. It’s only possible to open a cryptocurrency wallet using an individual key which is a string of random characters, making it unguessable. Only the owner knows their key which means high levels of security, but can also result in them losing access if they misplace the key. 

Blockchain Technology

Blockchain technology, which cryptocurrency relies on to make payments, is a highly secure system. It distributes the data from payments across thousands, if not millions of points, meaning that it doesn’t rely on a single point of failure like many traditional payment systems. It also makes it difficult for an attacker to compromise that system without controlling the majority of the network. 

Blockchain uses consensus mechanisms to validate transactions by using algorithms like Proof of Work or Proof of Stake to prevent fraud. In simple terms, these mean that users have to contribute resources like coins or computing power to prove their commitment to the coin. To infiltrate a cryptocurrency system, an individual would first have to have legitimate shares in the cryptocurrency and prove it, making attacks an expensive process. 

Which Industries Have Welcomed Payment Innovations? 

Plenty of industries have been keen to make the most of the advantages that these payment innovations offer. Some have been more welcoming than others, such as ecommerce, iGaming and retail, all of which sit on the cutting edge of payment innovations. 

Ecommerce 

In ecommerce, cryptocurrency has made things more transparent throughout the supply chain. All transactions are recorded openly on blockchain, which operates like a digital ledger. It’s an ideal way to ensure that everyone is kept in the loop with changes throughout the different steps. Once something is recorded, it can’t be edited or overwritten, helping to prevent manipulation or fraud. 

Today, plenty of ecommerce providers accept digital wallets like Apple Pay or PayPal and an increasing number even take crypto. It’s no wonder that the adoption of these payment methods is growing as users become more accepting of digital money; a recent Kaspersky study found that 87% of people would be comfortable paying for online purchases with digital money. 

iGaming 

I’ve seen first-hand the impact that payment innovations have had on the iGaming industry, which is always quick to adopt new technologies. Gambling sites first adopted PayPal in 2009 and it was only a few years later that a number of crypto casinos began springing up, one of the first being SatoshiDice (named after the Bitcoin creator). 

Today, e-wallets are extremely popular on gambling sites, often challenging bank transfers and cards as the most popular options. Cryptocurrency is less widely accepted but it’s not uncommon to see Bitcoin in particular offered. There’s also a growing number of providers who specialize in cryptocurrency payments where players can enjoy their lower fees and faster payment speeds. 

Retail

After crypto began gathering steam as a payment method, major retailers including the likes of Amazon, Tesla, Ikea, Home Depot and a large number of clothing and supermarket outlets, began accepting it. At the moment, many focus solely on Bitcoin, but the number of coins accepted continues to grow. 

The possibility that we could be paying using cryptocurrency in-person might be closer than you would expect. Currently, there’s a handful of apps which allow users to pay in-person using a QR code connected to their crypto wallet which is scanned at the till like a voucher. It’s a pretty rudimentary system, but we could see something much closer to how the Apple Wallet works in the near future. The Apple Wallet doesn’t store your money, but it allows you access to it and a similar technology could make in-person payments with crypto much easier. 

Why Ecommerce, iGaming and Retail Lead in Digital Payments

Digital payments have become popular in recent years thanks to the many advantages they offer. Rather than facing high fees and long waits, users can often receive their money within hours and at a much lower cost. There are also better security standards and, in some cases, innovative blockchain technology, which appeal widely across industries.

All these advantages have made e-wallets and cryptocurrency especially popular in sectors like ecommerce, iGaming and retail. These industries remain on the cutting edge of payment innovations, and it’s easy to see the benefits they’ve reaped as a result.

Dominic Greenholt has over a decade worth of experience in the gambling industry and is a specialist in payment methods. Alongside the knowledge he’s accrued over his years in the industry, he also has a Degree in Financial Management from the University of Canterbury, making him the go-to for learning about finance in iGaming.