By 2025 digital wallet use will account for just over half (52.5%) of ecommerce transaction value worldwide, versus 48.6% in 2021, according to the FIS Global Payments Report. At the physical point of sale, the report states, digital wallet use will rise to nearly 39%, an increase of about ten percentage points from 2021 levels.
That growth reflects increasing and maturing usage in markets where digital wallets dominate the payments mix — notably the Asia-Pacific region — as well as increasing levels of wallet usage in other markets, including the United States.
In Europe digital wallets have become the leading ecommerce payment channel, representing about 25% of Europe’s transaction value in 2021 in that space.
There are distinct trends to be seen regionally as well as within specific countries. The 156-page study reviews trends in every means of consumer payment, including cash.
We look at some of the global payment trends identified by FIS and then at the U.S. and broader North American markets.
Pass-Through Use of Cards Boosts Wallet Volume
Globally FIS projects that 12% of global consumer spending will be conducted via ecommerce by 2025, a level already exceeded in some markets.
Growth rates will slow in some markets like Asia-Pacific where it is already a major factor, but in other markets like Latin America, and the Middle East it will continue growing at an accelerating rate.
While buy now, pay later remains a small portion of overall transactions by global volume, the study projected significant growth between 2021 and 2025. The study forecast a share of total ecommerce transaction value of over 5% by 2025 for BNPL.
The study attributes much of the appeal of BNPL to the common interest-free form made popular by nonbanks, some of which have been experiencing difficulties.
Regarding ecommerce payment preferences, the report noted a continuing shift away from use of cash and credit cards towards wallets and BNPL.
However, one factor to consider is that much of the volume paid through wallets draws on credit and debit cards linked to the wallet — essentially, the same account going through a different channel. (FIS considers “digital” and “mobile” wallets the same thing.) continue reading