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With the adoption of convenient mobile wallets such as Google Pay and Apple Pay along with the extensive use of contactless transactions and QR code payments on a global scale, our financial and spending habits have tremendously transformed.
Digital wallets also play a huge role in shifting the focus from traditional payment methods to a faster and more convenient way of purchasing goods and services. The popularity of mobile payment apps rose mostly during the COVID-19 period when contactless payment methods were highly encouraged.
And exploring the statistics surrounding mobile payment adoption goes hand-in-hand with gaining insight into how consumers change over time.
If you’re interested in learning more about mobile payments, continue reading on to discover more about its market, digital transactions made globally, the largest apps available, and more.
Top 10 Mobile Payment Statistics for 2024
WeChat is the most used mobile payment app in the world.
In 2023, the transaction value of global digital payments reached $9.46 trillion.
The mobile wallet market transaction value is estimated at $54 trillion in 2023.
China is the country with the most digital payments in the world.
53% of digital wallet users use digital wallets more often than traditional methods.
62% of US respondents would use digital wallets as their primary payment method when traveling.
The mobile payment volume in India will grow more than 20% a year until 2026.
QR code payments are expected to be the top digital wallet transaction type in 2026.
Apple Pay has almost 44 million users in the US.
28% of Venmo users are younger than 29.
Mobile Payments Explained
Mobile payments are a form of digital payment or financial transaction that’s initiated via a smartphone/mobile device. Such payments are generally processed through digital wallets such as Apple Pay and Google Pay.
The wallets work by storing payment information electronically, which then allows users to access payment for any goods and services with a tap.
The growth of mobile payments can be due to its faster, safer, and more convenient nature when compared to other payment methods such as using cards. Moreover, the limited entry barrier for accepting mobile payments is low as well. Businesses usually only require a contactless payment reader or a POS set-up.
Just looking at it statistically, mobile payments are bringing in huge numbers and it has continuously increased.
By the end of 2024, the mobile payment market size is estimated to be over $94 billion and is currently expected to cross the 400 billion mark by 2029. This places the market growing substantially at a 34.04% CAGR during the forecasting period of 2024-2029.
Additionally, mobile payments have been largely successful due to the adoption of services such as Apple Pay, AliPay, Google Pay, Samsung Pay, and more by both small and large businesses worldwide for processing their service payments.
This paired with the increased use of the internet and online business merchants assisted methods such as mobile payments to get to where it is today and continues to do so. As of now, the contactless payment industry is anticipated to cover more grounds by using newer methods such as soundwave-based mobile payment.
Top Mobile Payment Trends in 2024
The mobile payments market size is reportedly expected to reach around USD 94.51 billion in 2024.
Asia Pacific is anticipated to have the highest CAGR growth over the 2024-2029 forecast period.
North America counts for one of the largest market shares in 2024 within the Mobile Payments Market.
In 2024, the mobile payment market is anticipated to reach around USD 94.51 billion.
By 2025, half the Gen Z population is expected to use BNPL (Buy Now Pay Later).
1. The rise of BNPL
2. The digital wallet transformation
3. The revolution around real-time payments
4. BPA takes the win in ensuring security
5. Phone numbers as the primary financial fingerprint
6. APP fraud remains high on the agenda
7. Operational resilience & control culture
8. Indian e-commerce growth through GeM
9. Spike in internet reach catapults market growth within the mobile commerce sector
Worldwide Digital Payment Statistics
At 1.3 billion users, WeChat is the most used mobile payment app in the world.
WeChat is the leader among social media payment apps. It’s an all-in-one app, used for chatting, social media, payments, and games. It’s owned by the Chinese company Tencent, and is used by more than half of all people in China.
The top mobile payment platforms have billions of users.
As users often have more than one app, adding up these numbers won’t give you the total number of users in the world. However, the user base for each of the top ten apps is massive.
The Number of Users of Top 10 Mobile Payment Platforms Breakdown
The global mobile payment market is expected to grow by 35.5% between 2023 and 2030.
Last year, the market was valued at $53.5 billion. However, it’s eyeing a staggering $607.9 billion by 2030. Big names like PayPal, Amazon, Google, and Apple dominate Western markets, while WeChat and Alipay rule the Asia Pacific region.
In 2023, the transaction value of global digital payments reached $9.46 trillion.
Digital payments are fueled by widespread smartphone use, growing e-commerce, and increased internet activity worldwide. Looking ahead, digital payments are transforming how individuals and businesses handle financial transactions. So it’s no surprise that global digital transactions and payments promise to reach $14.78 trillion by 2027.
There are at least 3.4 billion mobile wallets in use globally.
According to Juniper Research, by 2026, there will be over 5.2 billion mobile wallets in use globally. This will account for over 60% of the global population, with a stunning growth rate of 53%.
The mobile wallet market transaction value is estimated at $54 trillion in 2023.
At the same time, mobile payment growth is expected to happen at a CAGR of 10.5% until 2026, when the market is forecasted to reach $72.95 trillion. Mobile wallets are an important part of the mobile payment industry, providing consumers with more convenience online and in-store.
QR code payments are expected to be the top digital wallet transaction type in 2026.
QR code payments are forecasted to reach 380 billion transactions globally by 2026, according to Juniper Research. The popularity of this payment method lies in its speed and convenience. At the end of the forecasted period, QR code mobile digital payments could account for over 40% of all transactions by volume.
Statistics on Digital Transactions by Country
By 2028, the average digital wallet user in North America will be spending $8,566 a year.
This is the highest forecasted spending of all global regions and significantly higher compared to the second-ranked, which is the Far East and China. While this is only a prediction, it’s a useful illustration of the digital wallet market. Let’s look at all the regions from Juniper Research’s study:
Projected Digital Spending per User by 2028
North America: $8,566
Far East and China: $5,646
Western Europe: $4,256
Rest of Asia Pacific: $2,338
Latin America: $1,539
Central and Eastern Europe: $1,400
Indian Subcontinent: $1,266
Africa and Middle East: $823
47.5% of US smartphone owners are tapping into the electronic mobile payment market.
In 2023, over 114 million Americans dove into in-store mobile payment apps — 7.3% more compared to the previous year. By 2025, more than half of all smartphone users in the US are expected to use mobile payments.
In the US, 53% of digital wallet users use digital wallets more often than traditional methods.
Another 10% use digital wallets as often as traditional payment methods, and the preference is more pronounced in younger generations. Moreover, 78% of Gen Z respondents in the survey said they’d stop shopping at a store that didn’t accept digital wallets, compared to 51% respondents overall.
62% of US respondents would use digital wallets as their primary payment method when traveling.
Convenience and safety are a reason many US respondents consider digital wallets as one of the best ways to transfer money internationally. Again, it’s an especially common attitude among Gen Z, as 86% of respondents under 26 said they’d consider wallet payment apps as their primary payment method for traveling.
The mobile payment volume in India is expected to grow more than 20% a year until 2026.
In India, payment apps and mobile wallets are not just a market trend, but a part of a government plan to give more people access to financial services. The most popular apps are Paytm, BHIM, Google Wallet, and PhonePe. What’s interesting is that WhatsApp also joined the mobile payment industry in India, offering direct ways to transfer money such as in-chat payments.
In Pakistan, the user bases of the three top mobile wallets are expected to triple between 2020 and 2025.
Mobile payment statistics for Pakistan show that the market is growing and becoming mainstream. The two largest apps, JazzCash and Easypaisa, are also fully regulated as banks in Pakistan, offering access to banking to underserved communities. In fact, the digital payments market is expected to reach $11 billion in 2023.
In Germany, the total transaction value in 2023 is projected to reach $257.6 billion.
Between 2023 and 2027, the German digital payments market is expected to grow at a solid CAGR of 10.75%, hitting $387.6 billion at the end of the forecasted period. As in other countries, the digital commerce market is the largest segment, with a 13.4% market share.
China is the country with the most digital payments in the world.
Research predicts that over 500 million people in China will use mobile payment apps for both in-store and online transactions this year. This reflects an impressive 38.3% penetration rate, making China the first among the 44 countries covered by the research.
87.5% of mobile internet users in China use mobile payments.
When it comes to China, mobile payment statistics show that 92% of China's online shoppers were all about AliPay in 2022. WeChat Pay was not far behind in popularity. Other favorites in the 2022 survey included UnionPay at 45%, JDpay at 23%, Apple Pay at 22%, and Tenpay at 19%.
China's mobile phone transactions skyrocketed to $72.45 trillion in 2022.
China is the world’s leading mobile payments market. Another figure illustrating this fact is the number of mobile transactions per year in China, which reached 159 billion in 2022.
China’s payment preference encouraged the mobile payment trend in tourist areas.
More and more luxury stores now accept AliPay, preferred by 60% of Chinese tourists. For 35.2% of Chinese travelers, WeChat is the best way to transfer money internationally.
Comparing Popular Mobile Payment Companies
Apple Pay usage statistics show that it has almost 44 million users in the US alone.
Apple Pay takes the limelight as the most popular mobile payment app among Americans, set to gain 14.4 million more users by 2025. Starbucks claims the second spot with 31.2 million users, albeit for its restaurants exclusively. Coming in a distant third is Google Pay with around 25 million users. Samsung Pay, with its mere 16.3 million users, was pushed out of the top 3.
The leading online payment wallets in the United States include PayPal (36%), followed by Apple Pay (20%) and Venmo (16%).
Mobile payment usage statistics in America show PayPal takes the lead with 36%, followed by Apple Pay at 20%, and Venmo at 16%. PayPal is the go-to choice for over a third of users, ruling the digital wallet turf. Finally, as many as 46% of people trust PayPal for their online shopping adventures.
Apple Pay has the lowest fees for instant transfers, coming in at 1.5%.
In the diverse landscape of popular payment apps, each platform brings unique features. Apple Pay stands out with a 1.5% fee for instant transfers and a 2% cash back on P2P payments. Venmo charges a 3% fee for credit card transfers but offers free bank transfers and supports cryptocurrencies. Cash App, with a 3% fee for credit card transfers, facilitates Bitcoin transactions and sets various transfer limits. We’re aware that no size fits all, however, these are our recommendations.
When looking at PayPal vs. Alipay, Paypal wins for being a payment option on more websites.
In the digital payment landscape, Alipay rules in China, with 96,261 websites. However, PayPal takes the global stage with a whopping 1,739,464 websites. Both have costs, but PayPal shines across various websites and worldwide markets, outpacing Alipay.
Digital wallets showed some of the highest increases in fraud compared to other payment methods.
Financial institutions reported that digital wallets experienced higher fraud levels compared to 2022, and much higher compared to other payment methods. 65% of FIs that accept SamsungPay, 60% of institutions that accept ApplePay, and 52% of FIs that accept GooglePay said the same.
Mobile Transactions and Payments: Demographics
PayPal's Pay in 4 is especially popular with Gen Z and Millennials.
PayPal's Pay in 4, offering four interest-free payments, proves popular among the younger generations. An analysis of 289,000 users in 2022 showed 51% of users were millennials and Gen Z, and 35% were Gen X. Comparable trends across three BNPL (buy now pay later) providers reveal millennials and Gen Z consistently constitute 50-60%, while Gen X ranges from 30-35%.
75% of Millennial PayPal's Pay in 4 users are repeat customers.
Millennials and Gen Z favor BNPL as a form of budgeting (77%), viewing it as an interest-free alternative to credit cards. Additionally, 24% of Gen Z users leverage BNPL to sidestep revolving debt. Notably, 71% of these users abandoned purchases lacking BNPL, emphasizing its significance.
28% of Venmo users are younger than 29.
Venmo is now the second most-used payment service in the US, with a 34% user share. With 28% of US Venmo users aged 18 to 29, diversifying payment methods could tap into this younger demographic. Businesses using PayPal can easily access Venmo, reaching nearly 90 million active accounts and aligning with Gen Z payment preferences.
Over 60% of Gen Z respondents say they spend more when using digital wallets.
While younger generations use digital wallets more, they also find it more difficult to control their spending while using them. This is not only true for Gen Z, but also for 51% of Millennials, 41% of Gen X, and 28% of Baby Boomers.
Paypal has more female than male users in the US.
Over 3000 people, aged 18 to 64, participated in the research. The findings from this 2022 online survey in the United States reveal that 54% of PayPal users identified as female.
UK men are 22% less likely to prefer contactless payments.
Men prefer contactless payments 22% less than women (41% vs. 53%), favoring Chip & PIN at 14%, compared to 8% of women. According to a Statista study, 35% of men (29% of women) avoid contactless due to trust issues. Even in 2024's contactless boom, gender differences endure.
Gender disparities persist in mobile money across low- and middle-income countries.
A study analyzing eight countries showed that there is a significant gender gap in mobile money awareness and use in low- and middle-income countries. Women in Indonesia, Nigeria, and India are 57.1% less likely to use a mobile payment system than men. However, in countries with high awareness and high use of mobile money (Kenya, Tanzania, Uganda), women were just as likely or more likely to use mobile payments.
In Bangladesh, women pay higher fees for digital payment cashouts.
In Bangladesh, women encounter hurdles in digitalization, owning fewer phones (31% vs. 44% for men), grappling with illiteracy affecting text notifications, and relinquishing control over fund usage to family members. Despite no official fees, women pay higher amounts to agents ($0.47 vs. $0.33 for men).
A Cashless Society: What Should We Expect?
In a rapidly evolving digital landscape, the concept of a cashless society has transitioned from speculative fiction to a tangible reality. This transformative shift, powered by technological advancements and changing consumer behaviors, holds the promise of reshaping how transactions are conducted, both domestically and globally. As we stand at the precipice of this monumental change, it becomes crucial to understand the implications, benefits, and challenges that a cashless society presents.
- Improved Convenience - One of the biggest reasons behind businesses going digital has a lot to do with convenience. While cash payments may take anywhere around 6-7 seconds to process a payment, contactless payments get processed within 1-2 seconds. Moreover, such digital systems also aid in streamlining practices through the elimination of need for running to the bank or extra POS accessories. It’s also much easier for consumers to carry a mobile device (as one normally does) rather than carrying wads of bills.
- Cost-Efficient - Cash handling often costs small businesses in the US billions every year. But, by leaving physical cash behind, businesses no longer have to cover costs that are associated with cash deposits and processing. However, with an average POS charging around 1.5% - 3.5% per card for processing. Hence, businesses find it immensely beneficial to go cashless after conducting a cost-benefit analysis.
- Prevents Fraud - According to the Bank of International Settlements, $100 bills make up for about 80% of bills in circulation in the U.S. This is due to the fact that physical cash is always much harder to trace or track, thus enabling criminals and fraudsters to further enact their crimes. However, switching digitally to cashless payment methods has helped reduce money laundering tremendously, while also improving financial transparency. This also makes burglary cases less common.
- Increased Consumer Spending - Study shows that consumers spend around 160% more on online card transactions compared to cash transactions. This isn’t as surprising since spending money through Venmo or tap payments feels abstract, thus, making it easier to spend money without much thought. While this doesn’t seem ideal for one’s bank balance, it creates great opportunities for businesses opting for maintaining better profits through turbulent times.
- Lack of Accessibility - Unfortunately, a cashless reality is not exactly accessible to everyone. Around 5 million households in the US currently remain unbanked. This means there are still many who rely on cash payments for daily purchases. Hence, making digital mode of payments mandatory can set back a lot of marginalized members, particularly in the case of the homeless population who mainly depend on cash donations.
- Risk of Cybercrime - While businesses that conduct cashless transactions likely won’t encounter traditional forms of burglaries, digital systems are still vulnerable to cases of cyber-attacks, which affect businesses quite tremendously. In fact, in 2022 US SMBs suffered over $100k loss due to cyber-attacks. Moreover, about a quarter of American companies experienced cyber-attacks in 2022, with some businesses reportedly losing over $1 million.
- Privacy Issues - As digital payments are known to leave digital traces, many experts, including the founder of FrugalBudgeter have raised concerns regarding data privacy. This means a cashless society can make it incredibly easy for financial institutions and governments to track one’s financial transactions. Such cases of tracking have increasingly raised concerns regarding surveillance and privacy for digital-based users as they largely impact transactional privacy.
- Negative Interest Charges - If we happen to ditch cash for good, it will be impossible to get away from negative interest rates posed by banks to manage the impact left by inflation. We’ve already seen an example of such cases in countries like Japan, where users were charged negative interest through the introduction of a policy by the National Bank in 2016.
With about 11% of American adults abandoning cash, a significant reduction in cash payments from 26% to 20% in 2021, and a stark decline in cheque transactions over the last decade, the trajectory towards digital payments is unmistakable. The sentiment for a cashless America is strong, with over 60% of Americans believing in its possibility within their lifetimes, while in the UK and Sweden, the move away from cash is even more pronounced.
The statistics paint a vivid picture: from the dominance of cashless payments in the Asia-Pacific projected to outpace North America and Europe by 2026, to the staggering growth in digital wallet users expected to reach over 5 billion globally. With such transformative changes underway, this section delves into the multifaceted impact of a cashless society, exploring its advantages from improved convenience and cost efficiency to its role in preventing fraud and enhancing consumer spending. However, the narrative remains balanced by addressing the critical disadvantages, including issues of accessibility, the risk of cybercrime, and privacy concerns.
Around 11% of American adults have stopped using cash
In 2021, the average number regarding cash payments fell to 20% from 26%.
Within a decade (2012-2022), cheque transactions have faced a heavy decline by almost half a percent.
Over 60% of Americans think there’s a high chance for America to go cashless during their lifetime
In the UK, over 23 million people did not use any cash in the last year
In Sweden, cash now represents only 1.3% of the country’s GDP
The amount of cashless payments made within the Asia-Pacific is projected to be higher than in North America and Europe by 2026.
About 47% of adults in the U.S do not make any cash in a week
Around 69% of people in America have used cash for very minimal purchases.
Within a year, the number of Americans going cashless grew by about 13%.
Within the 63.9% of Americans expecting a cashless future, around 44% of them consider a cashless society possible to happen.
In 2024, there are around 87% of point-of-sale cashless transactions on a global scale. Moreover, recent trends indicate that by 2027 around 91% of POS transactions will be cashless.
According to recent data, by 2026 the number of digital wallet users globally is estimated to be over 5 billion. Similar projections estimate around $12 trillion value in digital wallet transactions.
Apple Pay has emerged as the top digital wallet with around 90% of digital wallet debit transactions.
PayPal is also the top online payment processor, whereby 94% of the users are all smartphone users.
Mobile Payment Statistics: The Takeaway
Global digital payments are set to hit a massive $14.78 trillion by 2027, led by China's adoption and giants like Alipay and WeChat Pay. In the US, PayPal rules digital wallets, and Venmo is the second most-used payment service.
Canada's digital payments are booming, expecting $137 billion in 2023. Contactless payments are on the rise, especially post-pandemic. This shift reflects changing preferences and tech advancements, influencing people from all walks of life.
The younger generations are adopting digital wallets more easily, while mobile payment apps help underserved people across the world get access to financial services en masse.
