Research indicates that digital wallet adoption among small and medium-sized businesses (SMBs) is on the rise in 2025. Growth is being driven by consumer demand and rapid advances in technology, though adoption levels vary by region and platform.

In markets with high uptake, such as Asia, nearly 90 percent of consumers use digital wallets. This widespread consumer habit is prompting SMBs to follow suit, thereby helping to boost conversions and reduce cart abandonment. Still, challenges remain, including security risks and uneven adoption across regions. There is also ongoing debate about whether this shift benefits all businesses or mainly strengthens large platforms.

Key Takeaways

• Growth Drivers: Customers want speed and convenience, which has pushed SMBs to adopt wallets quickly. In the U.S., card payments still dominate, but globally, PayPal leads with strong SMB acceptance.
• Leading platforms, such as Apple Pay, Google Wallet, and PayPal, continue to be the top choices, renowned for their seamless user experiences and higher conversion rates.
• Customer Behavior: About 70 percent of online carts are abandoned, and missing preferred payment options is a key reason customers drop off.
• Optimization: SMBs can boost revenue by supporting multiple payment methods, optimizing checkout for mobile devices, and leveraging payment data to personalize the customer experience.

The Rise of Digital Wallets

This year, digital wallets have moved from niche use into mainstream commerce. Global adoption has risen sharply, with users increasing from about 2.7 billion in 2020 to an estimated 4.8 billion in 2025, and further growth is expected in the years ahead. This expansion reflects a shift in both consumer habits and merchant infrastructure.

Transaction volumes highlight this trend. In 2023, digital wallets processed more than $15 trillion worldwide, with Asia accounting for the largest share. In several Asia-Pacific markets, wallets are no longer limited to payments but are also being used for adjacent services such as lending and insurance. At the same time, global e-commerce payments are continuing to shift toward digital wallets, which are projected to account for over half of online transaction value by 2025.

Wallets are also becoming more visible in physical retail. Contactless acceptance is now standard in many markets, supported by innovations such as Apple’s Tap-to-Pay that enable merchants to accept payments without additional hardware. In the U.S., the majority of small businesses already support contactless payments, which has made wallet adoption easier to scale.

Cross-border usage is expanding as well. Surveys indicate that more than 40 percent of consumers in markets such as the U.S., U.K., Saudi Arabia, and Singapore now prefer digital wallets for international transactions, citing convenience and security as key factors.

For SMBs, these developments underline the importance of wallet acceptance. As adoption grows across regions and use cases, digital wallets are becoming a standard expectation for customers rather than a secondary option.

While adoption grows, debates around data privacy and platform fees highlight potential downsides, with some arguing that smaller businesses face unequal burdens.

In the fast-paced world of 2025 commerce, digital wallets have become more than just a convenience – they’re a powerhouse reshaping how small and medium-sized businesses (SMBs) operate. Picture this: a local coffee shop owner who once relied solely on cash and cards now sees most transactions zip through via Apple Pay or Google Pay. This shift isn’t accidental. It’s the result of years of technological evolution, consumer behavior changes, and economic pressures that have propelled digital wallet adoption among SMBs to remarkable heights.

While exact global figures for SMB acceptance hover around 60 to 75 percent for leading platforms, in specific regions and sectors, it’s pushing toward that 90 percent mark often cited in industry projections, especially when considering combined acceptance of multiple wallets.

Let’s dive into how we got here. In the early 2020s, digital wallets were primarily a consumer-focused tool, used by people for quick in-store purchases or online transactions. But the pandemic accelerated everything. Contactless payments surged as people sought to avoid handling cash or cards. By 2023, digital wallets accounted for 49 percent of the global e-commerce transaction value, a figure expected to rise to 54 percent by 2026.

For SMBs, this meant adapting or losing out. Surveys indicate that adoption in the retail and food sectors has increased significantly, driven by customer demand. For instance, a Verizon survey of 600 SMBs revealed PayPal acceptance at 75 percent, with Apple and Google Wallets each at 52 percent. These aren’t isolated cases. In North America, digital wallets accounted for 37 percent of e-commerce transaction values in 2023, totaling over $748 billion. SMBs, which account for 65 to 70 percent of merchant revenues in the US, cannot ignore this.

What fueled this rapid climb was a convergence of three forces. Infrastructure improvements, such as 5G, have made transactions faster and more reliable, allowing restaurants and retailers to adopt contactless payments for greater efficiency. Integrated software vendors (ISVs) further accelerated adoption by bundling wallet capabilities into point-of-sale systems, removing the technical hurdles that once discouraged smaller operators. Finally, consumer adoption reached critical mass.

As more customers opted for Apple Pay, Google Pay, and PayPal, businesses had little choice but to follow, creating a self-reinforcing cycle where demand and acceptance drove each other forward.

In the US, 43% of consumers used digital wallets in-store in 2024, up from 23% in 2019. Globally, Apple Pay alone is projected to have over 500 million users in 2025. In high-adoption countries like India, nearly 91 percent of consumers use digital wallets for peer-to-peer and business transactions. This consumer pull forced SMBs to follow suit, creating a virtuous cycle. By mid-2025, reports indicate that in urban China, 90 percent of adults rely on digital wallets, influencing global trends.

Yet, it’s not all smooth. In the US, less than 60 percent of small businesses accept digital wallets, compared to 95 percent for cards. For cross-border payments, fewer than half of US SMBs use them. Still, the trajectory points upward, with projections suggesting that over two-thirds of the global population will own a digital wallet by 2029. For SMBs aiming for that 90 percent reality, it’s about strategic integration rather than blanket adoption.

The Wallet Hierarchy: Which Platforms Drive Highest Conversion

Moving to the wallet hierarchy, not all platforms are created equal when it comes to driving conversions. Conversion rates—the percentage of visitors who complete a purchase—vary based on ease of use, trust, and market penetration. Apple Pay leads in the US with a 38% market share among digital wallets, followed by PayPal at 28%. Apple Pay leads the way because its seamless integration with iOS devices removes friction at checkout, with one-click options often boosting conversions by as much as 30 percent. Google Wallet follows closely on Android, delivering a similar tap-to-pay experience that resonates with its vast user base.

PayPal stands out for its versatility, accepted by three-quarters of SMBs and driving higher conversions in e-commerce due to its established trust. In contrast, newer entrants like Cash App excel in casual transactions but lag in broad retail.

The hierarchy favors platforms with strong ecosystems – Apple and Google for hardware ties, PayPal for software ubiquity. Businesses report that localizing payments, including these wallets, can lift conversion rates by 12 percent in new markets. Interestingly, 70 percent of e-commerce leaders noted increased mobile revenue after implementing digital wallets.

Why 70% of Customers Abandon Purchases Without Preferred Payment Options

Many customers bail on purchases. Globally, nearly 70 percent of online shopping carts are abandoned. While reasons range from high shipping costs to just browsing, payment options are a major culprit. Up to 17 percent of shoppers drop off if their preferred method isn’t available. In the US, 18 percent abandon due to complicated checkouts, often tied to missing wallets. For B2B, the situation is even more pronounced, with over 48 percent abandoning their carts due to a lack of options.

This abandonment isn’t random. In 2025, customers are increasingly picky; 70 percent say that preferred payment availability heavily influences where they shop. Without Apple Pay, for example, iPhone users might leave, frustrated by the need to enter their card details manually. Mobile abandonment is particularly high, averaging 85.65 percent, often due to the complexity of forms. In retail, the rate is 71.24 percent, with hidden fees and limited methods compounding the issue. The financial impact is billions of dollars in lost revenue every year. However, addressing payment preferences can win back a significant portion of that.

Optimizing Wallet Acceptance for Maximum Revenue Impact

Optimizing wallet acceptance is key to turning these insights into revenue. The first step is to integrate multiple platforms. Stripe recommends streamlining processes to lower costs and improve security. Guest checkouts can cut abandonment by about 35 percent. For SMBs, tools like Tap to Phone make entry easier, while the QR code market is projected to reach $51.6 billion by 2032.

Mobile should be a top priority. Cleaner forms can reduce drop-offs by 10-15%. Wallet data can be used to personalize checkouts, which Bank of America says helps build loyalty. In B2B, embedding finance into payment flows could triple volumes to $2.6 trillion by 2026. Partnerships also matter. Visa’s work with SMBs is helping expand virtual cards, a market expected to hit $13.8 trillion by 2028.

Businesses that accept digital wallets already see faster transactions and higher customer satisfaction, according to J.P. Morgan. But balance is essential. Too many options can overwhelm customers, so it’s smarter to focus on the most effective ones, such as Apple Pay. Tracking metrics and running regular tests can help keep payment-related abandonment under 10 percent. In emerging markets, real-time payments are gaining momentum and are projected to account for one-third of all electronic payments by 2028.

Conclusion

The 90% mark isn’t yet everywhere around the globe, but the direction is clear. Digital wallets are spreading rapidly, and SMBs that understand the top platforms, reduce checkout friction, and offer the right options are reaping the benefits.

The future will bring even more secure and connected systems with tools like blockchain and AI. For now, the message is simple: adapt, or risk losing customers.