Consumers have embraced digital wallets. But they also want them to be better
Convenience, particularly for younger consumers, has driven rapid adoption of digital wallets, and new research from both Worldpay and J.D. Power indicates that more growth is coming. But mediocre satisfaction scores also suggest that convenience may soon not be enough to sustain wallets' momentum.
The digital wallet is becoming the payment channel of choice worldwide. Usage continues to pick up in the U.S. as well, although Americans still love their plastic debit and credit cards.
A study from Worldpay, The Global Payments Report 2024, estimates that digital wallets will account for 61% of ecommerce payments and 46% of point of sale payments worldwide by 2027.
Another study by J.D. Power looked at usage and satisfaction in the U.S. along with detail about the preferences for various digital wallets among generational groups as well as other demographic splits.
Both studies conclude that consumers’ quest for convenience is driving the growth in wallet adoption, with much of the push coming from Generation Z and Millennials. Both crave frictionless experiences and digital wallets fit the bill, according to Michelle Young, general manager and head of merchant solutions for financial institutions at Worldpay. As more Millennials and Gen Zers become small business owners, they will further push for acceptance of digital wallets as a way of building their businesses, according to Young.
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