How Mobile Wallets Are Changing the Way Consumers Pay

Mobile Wallets Are Reshaping How Consumers Pay

Mobile wallets are growing rapidly, but they are not replacing credit or debit cards. Instead, they are embedding them into digital devices. Consumers are shifting the way they access funds rather than abandoning their trusted payment methods.

According to the PYMNTS Intelligence report Pocket Revolution: How Mobile Wallets Are Changing Payments Worldwide, mobile wallets now account for 35% of online purchases and 21% of in-store transactions across 11 countries representing half of global GDP. This represents an increase of 5.2 and 10.9 percentage points, respectively, since 2022.

Younger Consumers Are Driving Adoption

Adoption is strongest among younger shoppers. Generation Z’s in-store wallet use has risen 23% since 2022, showing that younger consumers are setting the pace for mobile payments. But growth is not limited to Gen Z. Millennials, Generation X and baby boomers are increasingly using wallets, signalling broad acceptance across age groups.

Income is no longer a barrier either. Low-income consumers are adopting wallets faster than wealthier peers, highlighting that mobile wallets are practical everyday tools rather than luxury conveniences.

The Appeal of Mobile Wallets

Mobile wallets succeed because they make payments faster, safer and more convenient. Tap-to-pay, biometric authentication and stored credentials reduce friction at checkout, while rewards and real-time settlement add further incentives. Local wallets, such as Brazil’s Pix and the Netherlands’ iDEAL, now represent 8% of in-store transactions, demonstrating the importance of trusted domestic options.

Consumer motivation varies, with PYMNTS segmenting users into Committed (18%), Persuadables (39%), Dabblers (28%), and Skeptics (15%). This suggests wallets are still evolving from novelty to necessity.

What This Means for Merchants

The battle for the consumer experience, rather than the payment rail, is now central. Merchants and issuers that provide mobile-first payment experiences tailored to different personas are best positioned to capture wallet usage. Convenience, rewards and seamless cross-border use are key to converting dabblers and persuadables into committed users.

Payment Solutions with Kubera Payments

At Kubera Payments, we help businesses across North America move millions of dollars daily, whether in-store, online, or on mobile. Our team of payment experts is here to guide you through the complexities of payment processing, ensuring your transactions are secure, reliable, and PCI-compliant. We have strong relationships with a wide network of acquirers and can help you find the right front-end and technology solutions to work together.

Get expert advice on optimizing your payments.

Contact our team at sales@kuberapayments.com or 604-484-9278

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