Remember when paying at a restaurant, a store or even at the supermarket meant carrying a wallet full of cash and cards? Well, those days are long gone: in 2023 digital wallets became the number one payment methodin global POS (Point of Sale) and E-commerce transactions, reaching an approximate transaction value of $14 trillion USD dollars. Simply put, digital wallets are redefining how we shop, transfer money and even access to credit.
What started as a convenient way to tap and pay has become a global movement, with an adoption rate skyrocketing across industries and markets. Secure digital wallets are shaping the future of commerce by blending payments, loyalty and lending into one effortless experience.
In this blog we'll break down: what are digital wallets, the latest trends reshaping them (Buy Now Pay Later (BNPL), crypto, and stablecoins, and the numbers behind their rapid global growth.
What is a digital wallet and how do they work?
A digital wallet is a software-based system that securely stores your payment methods such as credit cards, debit cards or your bank account details on a mobile device or online platform. Its core function is to enable fast and secure transactions without the need for physical cards or cash.
As of today, there are multiple types of digital wallets:
- Mobile payment platforms (NFC-based wallets) (Apple Pay, Google Wallet): services that enable tap to pay transactions via smartphones or smart watches by securely tokenizing and storing card credentials. They are widely used for contactless payments in retail or transit.
- Digital wallets / E-wallets (PayPal, Alipay, Mercado Pago, Venmo): apps or platforms that can store your funds directly whilst linking multiple payment methods and services. These are popular in e-commerce transactions and peer-to-peer transfers.
- Crypto wallets: Used to store and transfer cryptocurrencies or stablecoins. There are two main types:
- Hot wallets (Metamask, Trust Wallet, Exodus): digital wallets connected to the internet, allowing fast crypto transactions. They are easier to use but less secure.
- Cold wallets (Ledger, Trezor, Ellipal): digital wallets that store crypto offline for maximum security. They are better for long-term storage (e.g. saving or investing).
Beyond storing cards, all these types of digital wallets support the same key functionalities such as making contactless payments, sending and receiving remittances, and in some cases, offering access to loyalty programs or credit features.
The diagram below illustrates exactly how digital wallets work in practice:
Top Digital Wallets
When it comes to global adoption, a few digital wallets consistently lead the industry. If you're wondering which is the best digital wallet, Fintech Magazine highlights PayPal, Alipay, WeChat Pay, Apple Pay, and Google Pay as the most popular ones due to their massive user bases and ability to integrate payments, rewards and financing features into a smooth user experience.
But usage and popularity vary a lot depending on the region. Fortunesoft notes that APAC is powered by Alipay, WeChat Pay, and GrabPay, while in Europe wallets like Revolut, Klarna, and PayPal are thriving with the rise of BNPL. In North America, Apple Pay dominates in-store transactions, alongside Google Pay, PayPal, and Cash App.
Meanwhile, in regions like Africa, M-Pesa is driving financial inclusion and reshaping how people access money. Below is a snapshot of leading digital wallets, their key markets, and unique strengths:
Digital wallets on the rise: where and how they're growing
Digital wallets are rapidly transforming payments globally, and the data shows it. According to the Worldpay Global Payments Report 2025, digital wallets:
- Accounted for over $15.7 trillion in consumer-to-business spending in 2024.
- Their share of POS transaction value rose more than 10X in a decade, from 3% in 2014 to 32% in 2024, and it's expected to keep increasing up to a 45% in 2030.
- In e-commerce, they already represent 53% of transactions, surpassing traditional payment methods like cash, credit and debit cards.
North America
Digital Wallets in North America represented 39% of e-commerce transactions ($748 billion) and 16% of in-store payments ($1.7 trillion) in 2024. However, most digital wallet spending in North America is still funded via credit, debit, and prepaid cards, highlighting the continued dominance of card payments. While digital payments are gaining ground online, adoption at physical stores remains slower due to consumer preference for the established card system.
Europe
Users in Europe switch between local digital wallets like MobilePay or Vipps alongside big names such as Apple Pay and PayPal, which together account for 33% of e-commerce transactions and 14% at POS, with prospects of doubling by 2030. In many European countries, consumers fund their wallets directly from their bank accounts, while PayPal continues to hold a strong position as a preferred online payment method, showing how digital wallets are gradually reshaping everyday spending across the region.
Latin America
Cash is quickly losing its domain in LATAM. Just ten years ago it made up 2/3 of in-store payments, and now it's down to 1/4. This is partly due to a shift towards other payment methods like cards and digital wallets. The latter is already being used for 13% of POS transactions and on track to reach almost a quarter by 2030. In e-commerce, digital wallets now handle over one in five transactions, thanks to the rise of fintechs like Pix, Transfers 3.0, MODO, PicPay, Nequi, and Mercado Pago, which are making digital payments more accessible across the region.
Asia-Pacific
Digital wallets in APAC are not just growing, they dominate. They already power nearly three out of four e-commerce transactions and more than half of POS payments. Countries like China, India, and Southeast Asia are moving closer to becoming fully cashless economies and setting the pace for the rest of the region.
Here's a brief summary of what we've just discussed above, showing how digital wallets (and digital payments altogether) are leading a drastic shift in global payments and user consumption:
Which industries use digital wallets the most?
Similarly to digital wallets' usage across regions, not all industries are adopting digital wallets and digital payments at the same pace. Retail, restaurants, and entertainment rely on frequent transactions, making mobile wallets, crypto wallets, and digital wallets overall a natural fit. For instance, in India and Germany, digital wallets lead online food orders with 76% and 55% market share respectively, while retail payments show similar trends globally.
Other sectors like financial services, travel, and gaming, are catching up, adopting secure digital wallets for businesses, international payments, and supporting cryptocurrencies. For example, in financial services, digital wallets account for 59% of transaction volume in mobile-first countries like India, and 44% of e-commerce value in Germany.
Overall, digital payments and digital wallets's growth goes as follows: industries that need fast, frequent, or smaller value payments (such as retail, restaurants, and gaming) are leading the shift from traditional to digital payments, while high-value or more infrequently consumed sectors (such as real estate or professional services) move more slowly.
An interesting fact to point out is that offering a wide variety of payment methods is becoming more of a requirement than a trend. Deloitte's Shaping the Future of Payments report notes that 70% of consumers choose where to shop based on the available payment methods offered by merchants and businesses, highlighting not only how crucial e-wallets are, but also the emerging necessity for merchants from all industries to integrate multiple payment methods in order to remain competitive and retain clientele.
Emerging trends in digital wallets
BNPL
Buy Now Pay Later has evolved from an optional checkout button to a core feature inside digital wallets. Worldpay estimates BNPL now makes up 5% of global e-commerce transaction value (approximately $342B) and could grow to $580B+ by 2030, with some forecasts pushing it to nearly $995B by 2026.
The novelty is the convergence between wallet-based and card-based BNPL offerings. Early on, BNPL providers were seen as a threat to card networks, but now, collaboration is the norm. Afterpay launched its contactless Mastercard, while Klarna offers its Pay in 4 via a physical Visa card. Using card rails allows BNPL players to instantly reach global merchant networks and simplify compliance.
But a digital-first experience remains key. That's why many BNPL providers are issuing virtual installment cards, instantly available inside a mobile wallet, so users can complete BNPL transactions online, in-app, or at the POS without needing physical plastic. Platforms like Way4 even enable QR-based BNPL loans in markets like Vietnam, proving that wallets are the preferred channel for adoption.
For consumers, integrating BNPL into e-wallets brings everything into one place: payments, installments, and transaction tracking. For merchants, it boosts conversion rates and average order value (up to 45% higher), especially in industries with frequent, lower-priced transactions like retail, food delivery and gaming.
Crypto payments and Stablecoins
Digital wallets are rapidly becoming a major gateway for crypto payments and stablecoins. Unlike traditional bank accounts, which often require ID verification and multiple proofs of residence, digital wallets are internet-based, giving global access to anyone with a connection. This makes digital wallets a cornerstone for the future of crypto and stablecoin transactions.
To scale efficiently, the crypto ecosystem requires essential infrastructure that can allow easy ways to move money in and out of crypto, safe storage for crypto assets and clear regulatory frameworks. That's where digital wallets come in: as a dynamic yet secure way to hold and transfer value, making it simple for users to manage their currencies and integrate them into everyday life. By bridging crypto with traditional payment methods, digital wallets turn digital assets into something practical, easy to spend, send, and combine with other payment options.
Partnerships like Mastercard & MoonPay take this a step further by connecting wallets directly to the global card network. Users can now pay with stablecoins at millions of merchants where Mastercard is accepted, with instant conversion to fiat happening in the background. This smooth experience turns e-wallets into full payment solutions, removing friction and making crypto truly usable on a daily basis.
Most digital wallet funding is still cards
Even though the impact digital wallets have had in the past decade and their projected growth is undeniable, credit, debit and prepaid cards remain highly relevant payment methods. In fact, most e-wallets are still funded by cards. According to a Worldpay survey, when asked “How do you typically fund your mobile (digital) wallet?” 56% of respondents worldwide cited cards as their primary funding source.
This shows just how important cards still are in the digital payment ecosystem. When you add up direct card use and card-funded wallet transactions, cards make up almost 56% of all consumer spending in 2024 (about $29 trillion). The chart below breaks down the main funding sources for digital wallets and shows why cards are still leading the way.
Still, digital wallets are the next standard
Digital wallets aren't just a trend, they're shaping the future of how we pay. Their appeal comes down to three things: speed, trust, and convenience. Whether it's Apple Pay, Google Pay, PhonePe, or WeChat Pay, customers love the simple tap-and-go experience, and merchants benefit from faster checkouts, which leads to fewer abandoned carts and richer data.
With mobile shopping on the rise, built-in security features like tokenization and biometrics, loyalty programs integrated directly into wallets, and regulators actively supporting adoption, e-wallets are quickly becoming the default way to pay. The future of payments isn't just card powered, it's digital wallet driven.
