The world is shifting. Consumers want less waste and more second chances for products. In fact, the UK’s recommerce market is expected to reach £12.4 billion by 2028.
Yet for the circular to truly scale, it will require more than listings and logistics. It needs financial infrastructure that matches the flexibility of these new models. This is where programmable wallets come in – digital wallets that can be customised to handle the unique payment flows of second-hand, rental, or sharing models.
From a customer’s perspective, programmable wallets often appear as in-app wallets. These allow payments, refunds, or credits to happen instantly within the platform, without switching apps, waiting for emails, or re-entering card details. A transaction becomes as simple as a click.
That simplicity matters. For recommerce to rival traditional retail, the payment journey must feel just as seamless as buying something new. If second-hand, rental, or shared models feel clunky, adoption will stall. In this sense, beyond convenience, wallets are emerging as powerful financial tools.. In fact, our research shows one in four Brits (25%) have in-app wallets, making them the UK’s second most popular payment method, behind only debit and credit cards.
Recommerce Revenue Challenges
Recommerce transactions involve more than just buyers and sellers. Platforms also need to coordinate with logistics providers, delivery partners, and their own operations, creating a multi-party ecosystem with complex payment flows.
Conventional payment systems are not built to manage these requirements. They aren’t designed for revenue splits across several stakeholders, holding funds securely until conditions are met, or processing refunds smoothly when issues arise. These limitations expose platforms to unnecessary risks. Manual workarounds increase the likelihood of errors, revenue leakage becomes harder to control, and the overall experience for users is compromised.
These gaps only widen as platforms scale. Instead of supporting growth, traditional payments can undermine profitability and slow momentum at the very moment recommerce businesses need to accelerate.
Solving Recommerce Pain Points With Programmable Wallets
The biggest barrier to recommerce isn’t supply or demand – it’s trust. Without it, first-time buyers hesitate, and sellers hold back. Programmable wallets solve this by embedding safeguards directly into the payment flow. Funds are held securely in wallets, refunds are automatic, and payouts happen on time. Trust becomes the default, not the exception, opening the door for scale.
Beyond trust, wallets also keep value circulating within the ecosystem. Integrated rewards, cashback, loyalty programmes and cross-border payment capabilities keep value circulating within the ecosystem, incentivising repeat activity and enabling platforms to scale internationally.
The data shows these features resonate. Over a quarter of users (26%) collect loyalty points or rewards, and 41% even prefer refunds paid directly into their wallets over their bank accounts.
By combining built-in safeguards with ongoing incentives, platforms create a self-reinforcing loop: users trust the system, enjoy the experience, and keep coming back.
Why Choose Programmable Wallets?
Research shows the top factors influencing platform spending decisions are competitive pricing (45%), transparent pricing (35%), and clear return and refund policies (35%). Meeting these expectations requires more than just sharp product listings. It demands a payment infrastructure that builds trust, rewards loyalty, and scales with demand.
That’s exactly what programmable wallets deliver. They streamline payments to make transactions faster and more satisfying for users, boosting retention and conversion rates. By embedding loyalty schemes, rewards, and cashback directly into the wallet, they also unlock new ways to build lasting engagement.
The benefits extend far beyond customer experience. Programmable wallets provide the flexibility and scalability platforms need to evolve, without the limitations and heavy maintenance of legacy systems. They reduce operational risk by cutting down on fraud, refunds, and chargebacks, while also simplifying reconciliation and freeing up resources to focus on growth. Crucially, these wallets make international expansion easier, with multi-currency capabilities, localised payment options, and built-in compliance that help platforms reach new markets with confidence.
Circular commerce is gaining ground, but outdated payment systems remain a barrier to scale. Programmable wallets remove those barriers, transforming payments into a source of trust, flexibility, and growth. For businesses navigating this new era of commerce, wallet-native platforms are a strategic advantage.
- Digital Payments
- Neobanking