Author

Kent Henderson

Published

17 October 2025

Estimated Read time

4Mins

Kent Henderson, VP Product Management at Mangopay, on how programmable wallets turn payments into profit engines

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

Author

Dan Brightmore

Published

10 September 2025

Estimated Read time

2Mins

Data from Mangopay’s global fraud detection solution Nethone shows UK online platforms among most frequently attacked countries, driving a 48% year-on-year rise in fraud checks

New data from Nethone, Mangopay’s global fraud detection solution, reveals online fraud pressure rising to record levels and breaking out of traditional holiday cycles. 

From January 2024 to July 2025, monthly inquiries (events assessed for fraud risk such as transactions, logins and sign-ups) grew from around 240 million to over 525 million. More than doubling in 18 months. Peaks landed outside classic shopping windows, notably Sep-Oct 2024 (480m) and set a new all-time high in July 2025 of 525m. 

The year-on-year picture tells the same story: between January and July 2025, Nethone processed an average of 470 million inquiries per month, compared to 300 million in the same period in 2024 – an increase of 48% year-on-year. 

Nethone’s full risk profiling analyses (“profilings”), which combine device fingerprinting, behavioural biometrics and account history checks, also rose from an average of 110 million per month (January-July 2024) to 170 million (January-July 2025), a 37% year-on-year increase, with an all-time high of 245 million in June 2025. 

Geographically, the UK emerges as one of the most targeted hubs for online fraud, alongside France, Germany and Spain. Sector patterns underscore the year-round threat. E-commerce accounts for the majority of fraud events detected across the year. This is consistently driving volumes well above 400 million monthly checks in 2025. Travel and mobility platforms bring in seasonal spikes during summer holidays, while FinTech platforms show sharp surges in specific months, reflecting event-driven criminal activity. Gaming platforms follow a similar pattern around promotional campaigns. 

Mark Burton, VP Engineering, Fraud Platform, Nethone

“Fraud is no longer a seasonal threat. Our data shows that criminal activity has become a year-round pressure on UK and European platforms. Fraudsters now exploit promotional cycles and refund windows just as much as traditional shopping peaks. They are becoming more persistent and opportunistic, driving higher costs for businesses and risks for consumers. Online marketplaces, travel providers, and FinTech platforms need to be prepared for a constant baseline of risk, not just one-off surges.”  

About Mangopay 

Founded in 2013, Mangopay powers a wallet-based payment infrastructure specifically designed for organizations with complex, multi-party fund flows. Our programmable wallet solution optimizes fund management, allowing platforms to regain control over payments, secure transactions, and automate payouts.  

By leveraging Mangopay’s end-to-end white-label infrastructure, clients generate additional revenue and enhance operational efficiency while remaining compliant and protected with 360° AI-driven fraud prevention. 

With over 250 million end users and more than €130 billion in processed transactions, Mangopay continues to lead in the fintech industry, providing flexible wallets designed to move money your way. 

About Nethone, a Mangopay solution 

Nethone, a Mangopay solution, is an AI-powered fraud detection system that offers the most in-depth user analysis and precise risk analysis for merchants and fintech companies.  The proprietary profiler analyzes thousands of data points for a 360° view of every user, detects fraudulent behavior with 130 signals combined with AI-based models, and keeps companies safe from account takeover, payment fraud, bots, and organized attacks.  

  • Cybersecurity in FinTech
  • Digital Payments

Author

James Butland

Published

10 February 2025

Estimated Read time

4Mins

James Butland, VP – Payment Network at Mangopay, on meeting the needs of the gig economy with Embedded Finance payment solutions

Specialised payment solutions supported by Embedded Finance have become essential for supporting the gig economy. They offer speed, accessibility, and security in financial transactions.

The global gig economy is forecast to reach a value of $1847 billion by 2032, reflecting its rapid expansion and impact on the workforce. This growth has unlocked flexibility and autonomy for workers. Furthermore, it has also introduced unique financial challenges, particularly in payment systems. With so many platforms available for freelancers, each one strives to offer the best experience. To succeed in the competitive world of the gig economy and handle changes in demand and pricing, platforms need to adapt fast.

Embedded Finance is a Transformative Force

Embedded Finance is emerging as a transformative force for gig workers. It simplifies payment processes and enhances financial management. Its impact is already evident in the streamlining of payments. Instead of waiting for traditional payroll cycles, gig workers can now access their earnings instantly. Empowering them with greater control over their finances. This approach not only alleviates cash flow challenges but also facilitates more effective ways of working for freelancers.

Moreover, Embedded Finance enables seamless partnerships with gig economy platforms. By integrating directly into these platforms, Embedded Finance solutions allow gig workers to manage all financial processes, from receiving payments to tracking earnings, without leaving the platform. For example, partnerships with wallet-based infrastructure providers enable secure, efficient fund dissemination. Meanwhile, laying the groundwork for additional revenue opportunities through wallet-facilitated transactions. This integration enhances both worker experience and platform capabilities, fostering a more cohesive gig economy ecosystem.

Flexible, Fast Payouts  

The gig economy is global by nature, requiring financial solutions that can support businesses and workers across borders. Flexible FX infrastructure plays a crucial role in streamlining contractor management by ensuring seamless multi-currency payments, compliance, and administrative efficiency. This type of infrastructure empowers platforms to reduce operational costs and improve the overall user experience for both businesses and gig workers.

By leveraging modular and flexible FX solutions, employment and HR platforms can cater to specific use cases, such as managing international contractor payments. These solutions not only enable compliant and efficient transactions but also simplify processes. This allows businesses to focus on core operations while offering a seamless experience to their users. Such advancements highlight the potential of integrated financial technology to address complex cross-border payment needs effectively.

For gig workers, income can often be irregular, leading to cash flow uncertainties and financial stress. Specialised payment solutions, powered by Embedded Finance, address this by enabling instant payouts. By integrating low-fee processing and real-time transaction capabilities, these platforms bypass the delays of traditional payroll systems. This provides workers with immediate access to their earnings.

The ability to access income in real time is more than a convenience; it is a critical lifeline for workers managing daily expenses, emergencies, or reinvestment in their work. This advancement significantly enhances financial stability, helping to sustain the gig economy as a viable career path.

Digital Wallets

A substantial number of gig workers operate outside conventional banking systems, lacking access to savings accounts, credit, or other essential financial services. Digital wallets and cross-border payment capabilities, key elements of Embedded Finance, are integral to addressing this gap. These tools allow gig workers to securely store and manage their funds, receive payments in multiple currencies, and make transactions with ease.

Additionally, digital wallets serve as more than just repositories for funds. They can include features such as budgeting tools, savings trackers, and credit-building capabilities. These tools enable gig workers to manage their finances more effectively while opening up new opportunities for growth and security. For instance, workers can build credit profiles through wallet-based transaction histories, unlocking access to financial services that were previously out of reach.

Security and Growth

As the gig economy increasingly relies on digital platforms, the importance of secure and adaptable financial solutions cannot be overstated. AI insights and data-driven credit assessments are creating robust ecosystems tailored to the needs of gig workers.

AI powered advanced analytics are transforming the way gig workers manage their finances. These tools can identify financial trends and provide actionable insights tailored to the individual. For instance, they can recommend optimal saving strategies or suggest the best times to withdraw funds, enabling workers to make smarter financial decisions and reduce uncertainty in their income flow.

While data-driven credit assessments are breaking down traditional barriers to credit access for gig workers. With irregular income patterns, many gig workers struggle to secure loans or build credit through conventional means. Platforms are addressing this by using alternative data points—such as earnings history and payment behaviours—to create fair and accurate credit profiles. This innovation opens doors to financial opportunities that empower gig workers to achieve greater financial stability and growth.

By streamlining payments, integrating accessible financial tools, and leveraging cutting-edge innovations for security, these solutions address both immediate and long-term needs. Through continued innovation, the gig economy is poised to thrive as a flexible, inclusive, and dynamic component of the global financial system.

  • Embedded Finance