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The proliferation of loyalty programs has heightened competition, so retailers will have to dig deeper into their customer data to drive active participation.

This includes connecting them to country-specific digital wallets, enabling fund transfers directly to mobile wallets via blockchain, allowing them to pay or receive by card in real time, and linking them to bank accounts across the globe. Digital wallets hold promise鈥攂ut consumers want physical touchpoints.

Mobile payment services can use modern card issuing to seamlessly scale and incorporate cards into users鈥� digital wallets. We expect US proximity mobile payment transaction value to jump at an 18.6% average annual rate from 2023 to 2027, hitting $1.094 trillion. Modern card issuing can help providers securely integrate cards into digital wallets by encrypting and tokenizing virtual card data.

Despite a slowdown in smartphone sales, innovations in advertising, commerce, AI, and even device form-factors will drive mcommerce and mobile advertising growth in 2024.

Forty-one percent of US consumers said convenience was the primary reason they used digital wallets, per a Forbes Advisory survey. While customers may not feel comfortable turning off verification for all transactions, they may appreciate using it for transit payments, which are typically low value and often made in a hurry.

Over three quarters (78%) of US consumers say they鈥檙e likely to return packages to a convenient, attended location inside, according to a June 2024 survey from Narvar. Nearly as many (71%) would use home pickup for their returns at a time they select.

Key takeaway: These new features are transforming digital wallets into commerce enablers. They help users organize their commercial experience and maximize deal-seeking. Examples range from Apple Wallet鈥檚 digital order tracking and receipts to Google Pay鈥檚 loyalty program integrations.

And it鈥檚 still growing domestically as consumers embrace digital wallets over physical cards: We expect 105.9 million people in the US will use Apple Pay next year鈥攁 6.2% jump year over year, per Insider Intelligence forecasts.

Synchrony warned that intense payments competition creates a risk that its cards won鈥檛 be accepted or compatible with digital wallet technologies in the future, according to a Securities and Exchange Commission filing. Developing a digital wallet can protect it from these risks and also help encourage spending and tighten loyalty.

This makes them perfect prospects for payment brands like digital wallets to focus on cultivating relationships that can grow over time. Zillennials are also financially conscious. 45% of zillennials are budget-minded, per a PYMNTS Intelligence survey. And only 16% are considered splurge spenders.

The DOJ argued Apple 鈥渋nhibited the creation鈥� of cross-platform, third-party digital wallets and prevented third-party apps from offering tap-to-pay functionality. What鈥檚 in the lawsuit? Prosecutors argue that Apple Pay and Apple Wallet鈥檚 exclusive NFC access has kept third-party developers from creating competing wallets.

And feature innovation in digital wallets is making consumers even more attached to their preferred wallet. For example, new features like PayPal鈥檚 digital smart receipts and package tracking create more use cases for the app, boosting user loyalty. This will make it that much harder to convince consumers to switch to a new P2P platform like X.

The rollout extends Klarna鈥檚 in-store push and bolsters Alipay鈥檚 global expansion efforts

What percentage of consumers who prefer digital wallets would be willing to pay a fee to receive their money instantly? A) 26% B) 36% C) 46% D) 56%. Nearly half of digital wallet fans would be willing to pay to get their money instantly, according to an April 2025 report from PYMNTS Intelligence and Ingo Payments. April 22, 2025. What a scam: Which is the payment method most often subjected to fraud?

And FedNow, slated to launch this summer, will let them immediately fund digital wallets via their bank accounts. Here鈥檚 how stakeholders will engage:. Merchants will add A2A checkout options to take advantage of fee savings. The cost of an average A2A payment could be just one-fifth of a debit card transaction. Merchants will also incent consumers to adopt A2A as a payment method.

The solution gives consumers greater visibility into their transaction data, improving the customer experience and saving banks money on customer service costs

Gen Zers鈥� habits diverge from other generations鈥� in the early stages of the customer journey. Our inaugural survey of banking consumers in Canada spotlights the differences to help banks drive conversions.

Android鈥檚 open ecosystem lets any provider develop a digital wallet, creating fragmentation: Customers could have bank-based and retailer-based wallets in addition to Google Pay. Google Wallet helps reduce this fragmentation by consolidating payments and passes into one product鈥攁 push that these features build on.

Ethical hackers from cybersecurity firm Trustwave鈥攑eople whose job it is to test firms鈥� cybersecurity measures鈥攚ere able to use tools available on all web browsers to easily access Money Lover consumers鈥� email addresses, digital wallet names, and transaction IDs. According to American Banker, the email addresses belonged to customers who shared digital wallets to manage shared expenses between peers.

This has helped Apple Pay rocket past Google Pay as the most used digital wallet in the US. Google Pay鈥檚 share of the 131.5 million US Android users we project for 2023鈥攕pread across dozens of smartphone brands鈥攚ill be small, at 27.5%. And Apple鈥檚 consumer footprint extends beyond those of virtually all US banks.

Digital wallets will approach half of POS transaction value share by 2027.

This has helped Apple Pay rocket past Google Pay as the most used digital wallet in the US. Google Pay鈥檚 share of the 131.5 million US Android users we project for 2023鈥攕pread across dozens of smartphone brands鈥攚ill be small, at 27.5%. And Apple鈥檚 consumer footprint extends beyond those of virtually all US banks.

Gamers will tap into digital wallets and transactions in games like Roblox and Minecraft. But digital doesn鈥檛 mean financially literate. Roughly 85% of Gen Zers say there are hurdles to financial success, per Bank of America. Very few feel able to build an emergency fund, save for retirement, or invest.

Integrating digital wallet options directly into merchants鈥� point-of-sale systems, for example, helps maximize purchase conversion. But expanded payment choice should not come at the expense of cards. Overwhelmingly, consumers say that cards are their most preferred way to pay in-store, per October 2022 Federal Reserve Bank of Atlanta data.