Digital wallets have become a cornerstone of modern commerce, transforming how people pay for goods and services. Over the past few years, we’ve seen a surge in the usage of wallet payments. By 2025, it is expected that over 5.2 billion people worldwide will be using digital wallets. This explosion is driven by the convenience of tap-to-pay and one-touch checkout, along with strong security measures. Recent data suggests that around 65% of U.S. adults used a digital wallet in mid-2024.

Today’s shoppers increasingly expect to pay with their phones or watches instead of cards or cash. Smartphones and other devices now double as payment terminals. Innovations like Apple’s Tap-to-Pay (introduced in iOS 18) allow merchants to accept contactless wallet payments directly through an iPhone or compatible Android device. This means even small shops or pop-up stands can tap-and-go without needing to purchase specialized hardware. In brick-and-mortar stores, contactless acceptance is already mainstream: by 2022, 92% of U.S. small businesses are expected to accept NFC/contactless payments.

And remember, contactless cards and wallets are not only fast – they’re more secure (card numbers never appear to the cashier, and fraud is reduced). All of this sets the stage for digital wallets to continue growing.

Market Growth and Consumer Adoption

The rise of digital wallets is a global trend. Industry forecasts predict that by 2025, roughly half the world’s population will use e-wallets. Another study found that global spending via digital wallets could reach $10 trillion by 2025, roughly double the 2020 level. In online commerce, wallets are gaining popularity: research indicates that by 2025, more than 50% of all e-commerce spending worldwide will be processed through digital wallets. Paying with an app has become a mainstream practice.

In the U.S., mobile wallet usage has jumped dramatically. Approximately 65% of Americans purchased with a digital wallet in July 2024. Younger shoppers lead the way: roughly 91% of U.S. consumers aged 18–26 now use a mobile wallet as their primary payment method. Millennials and Gen Z often expect a fast tap-and-pay checkout, and data show these groups will abandon purchases if their preferred wallet option isn’t available. For example, Generation Z is twice as likely to cancel a transaction if they can’t pay contactlessly.

Regional patterns vary. Asia-Pacific still leads in sheer wallet use (Alipay, WeChat Pay, Paytm, and others are ubiquitous), while North America and Europe are catching up via Apple Pay, Google Pay, PayPal, Venmo, and the like. Markets like the U.K., where contactless cards are widely used, are already ahead of the U.S. in terms of pure tap-to-pay adoption. However, U.S. consumers are rapidly closing the gap: an estimated 49% of U.S. smartphone owners tapped to pay in 2024. These figures tell a simple story: wallets aren’t a novelty anymore – they are the new normal, especially online and on mobile devices.

Why Digital Wallets Matter for Your Business

 

For business owners, the rise of wallets is more than a tech trend – it changes customer expectations and sales dynamics. Adapting your payment offerings to include wallets has several key benefits:

• Faster checkouts and higher sales:

Digital wallets streamline the checkout process – customers can tap or click a one-touch button instead of manually entering their card details. This speed cuts down cart abandonment (especially online) and can significantly boost conversions.

Simply put, a faster, smoother checkout means more completed sales. Even in stores, customers appreciate the quick tap-and-go experience.

• Lower fraud and processing risk:

Wallet transactions are tokenized and encrypted, so sensitive card data never reaches the merchant. In practice, this means the actual card number is never exposed to the store or its systems. Plus, contactless payments use the same secure EMV standards as chip cards.

For you, that means fewer chargebacks and less fraud liability to worry about. The built-in security of wallets can effectively reduce your payment losses.

• Consumer data and loyalty:

When customers pay with wallets, you gain valuable data (with permission) about their buying habits. Wallets can also integrate loyalty programs and coupons, making rewards automatic at checkout.

For example, a retailer’s branded app might store points or discounts that apply whenever a customer pays through that wallet. In short, supporting digital payments can deepen customer relationships. It also signals a modern, tech-savvy brand image, which can be a competitive advantage in itself.

• Cost savings:

Many wallet payments still route over the traditional card networks, but alternatives are emerging. For instance, some apps allow customers to pay directly from their bank accounts (ACH, FedNow, UPI, etc.) at lower fees.

In any case, by focusing on the top 3–4 payment methods your customers prefer (and adding wallets to that mix), you can optimize processing fees and speed. Downsizing cash and check handling also cuts internal costs (handling cash can have hidden security and accounting expenses).

• Stay competitive

As wallets become the norm, businesses that don’t offer them risk falling behind. Companies without digital wallet options can lose customers and market share to rivals that do.

Think of it this way: if your competitors let customers tap their phones and you make them swipe cards or hand over cash, you’ll miss sales. Adopting wallets is about meeting customer expectations and staying competitive.

Popular Digital Wallets to Consider

By 2025, customers will have many wallet options at their fingertips. You’ll want to make sure you cover the major ones:

1.    Apple Pay

Used on iPhones and Apple Watches, Apple Pay enables customers to make in-store, app, and website payments using Face ID or a fingerprint. It has hundreds of millions of users globally (over 500 million reported).

Most U.S. retail terminals already accept it, and adding an “Apple Pay” button online is usually a one-click process with modern checkout systems.

2.    Google Pay

Available on Android phones and Wear OS devices, Google Pay similarly enables NFC and in-app payments.

With around 150 million users worldwide, it covers the other half of smartphone users. Like Apple Pay, it works with linked credit/debit cards or bank accounts for quick mobile checkout.

3.    PayPal/Venmo

These long-established e-wallets remain huge for online payments. PayPal alone has 435 million active accounts globally. By integrating PayPal or Venmo in your checkout, customers can pay with one click from their balances or saved cards.

Many people keep funds in PayPal or prefer its buyer protections, so offering it can win that segment of shoppers.

4.    Samsung Pay

For merchants, Samsung Pay is similar to Google Pay but with a twist: it can mimic a magnetic stripe (MST) on older terminals, extending contactless coverage. It serves Samsung phone users – a significant chunk of the U.S. market.

5.    Other wallets

Closed-loop wallets (e.g., Amazon Pay, retailer-specific apps) also play a role. For instance, Starbucks customers can pay via the Starbucks app, and about 26% of all U.S. store transactions were made by that app in late 2023.

In travel, banking, or hospitality, you may also see specialized wallets. Even cryptocurrency wallets (for Bitcoin or Ethereum) are cropping up; currently, only a few merchants accept crypto payments, but they do exist as a niche payment option.

Notably, most modern payment platforms allow users to have multiple wallets simultaneously. In practice, a single POS terminal or payment gateway (Stripe, Square, etc.) can enable Apple Pay, Google Pay, Samsung Pay, and standard contactless cards in one go.

Implementing Wallet Payments at Your Business

 

To prepare for 2025, take concrete steps to accept wallet payments:

• Upgrade or verify your POS:

Ensure your in-store terminals support NFC/contactless transactions. Nearly all chip-and-PIN card readers sold in the last few years do. If you rely on mobile checkout (using a tablet or phone), consider SoftPOS apps – these enable you to accept tap-to-pay directly on a standard smartphone or tablet without requiring extra hardware.

• Enable tap-to-pay on mobile devices:

New smartphones can function as payment terminals. For example, Apple’s Tap-to-Pay (iOS 18+) and equivalent Android services allow a merchant’s phone to accept wallet payments with just an app install.

This is great for mobile vendors or pop-up shops: download the softPOS app from your processor, register, and start taking Apple Pay, Google Pay, and contactless cards.

• Integrate wallets into your online checkout:

If you sell online or in an app, add wallet buttons (e.g,. “Pay with Apple Pay/Google Pay”) at checkout. Most e-commerce platforms and payment gateways offer easy plugins for this.

Once enabled, customers can skip entering card numbers – they tap their phone and the wallet handles the rest, reducing form-filling errors and speeding up purchase completion.

• Train staff and inform customers:

Ensure your team is familiar with processing wallet payments and can provide assistance to customers as needed. Display signage or digital receipts that say “Apple Pay accepted here” (with Apple logos) to signal readiness. The more seamless the experience, the more your customers will use it.

• Ensure security and compliance:

Although wallets handle the encryption, you still need up-to-date software and PCI compliance. Verify that your payment provider meets security standards (tokenization, fraud monitoring, etc.). Keep your systems patched and secure – for example, ensure your terminals have the latest contactless firmware. This protects both you and your customers.

• Consider QR code payments:

In some scenarios (food trucks, outdoor markets, restaurant tables) you might offer a QR code that customers scan with their digital wallet to pay. QR payments are prevalent in parts of Asia and are growing in the U.S. as a contactless alternative.

This requires minimal setup (usually just printing or displaying a static code tied to your merchant account) and can complement NFC acceptance.

Future Trends to Watch

The wallet evolution continues beyond just payments. Expect advanced features, such as biometric locks (fingerprint, face ID), to become standard for authorizing transactions. Wallets may also leverage AI to offer personalized deals or budgeting tools within the app. Some companies are even exploring voice-activated payments or augmented reality shopping experiences at checkout. Another trend is the rise of “super wallets” or super-apps.

In Asia, apps like WeChat and Alipay integrate payments with messaging, shopping, and other services, allowing users to seamlessly manage their financial transactions. Similar all-in-one platforms could emerge elsewhere by 2025. Wallets may increasingly incorporate everyday items, such as digital IDs, tickets, transit passes, or even medical records. For example, airlines and hotels are already experimenting with storing boarding passes and room keys in wallet apps.

The e-commerce world will continue to drive the use of wallets. As more social and online stores integrate in-app purchases, wallet adoption will grow (already >50% of e-commerce by 2025). Industry analysts caution that missing out on these payment methods risks losing sales.

In addition, some experts predict wallet usage will surge once routine bills and subscriptions can be paid through wallets. For example, when customers “Add [a bill] to Wallet” for utilities, phones, or rent, that habitual use can make wallets even more central to daily life.

Merchants in recurring-billing sectors should closely monitor this space. Finally, cryptocurrency wallets are worth mentioning, although they remain a niche market. Wallets for Bitcoin or stablecoins exist, and a few U.S. businesses accept crypto payments (usually converting immediately to dollars). For most companies, crypto-payments are still an experimental option, so focus on mainstream wallets first.

Conclusion

For U.S. businesses, adapting to digital wallets means ensuring your payment ecosystem fully supports wallet transactions (both in-store and online). The effort pays off: faster checkout, lower fraud risk, higher customer satisfaction, and future-proofed revenue. In practice, this adaptation is straightforward: upgrade POS systems to handle NFC, enable wallet buttons on websites, and let your customers know these options are available.

Forward-thinking merchants treat wallet acceptance not as an optional add-on but as table stakes. After all, today’s shoppers increasingly carry only a phone when they shop, and they expect to use it to pay. In essence, making digital wallets a standard payment option is about meeting customer expectations and staying competitive. Embracing wallet payments now positions your business to thrive in a cashless 2025 economy.