Digital wallets have emerged as a major force in the global payments landscape, dramatically transforming how consumers pay for goods and services worldwide. According to Datos Insights’ Global Digital Payments Market Report for 2025, digital wallets now account for the largest share of digital payment volume globally, creating both opportunities and challenges for payment providers. Let’s explore this revolution and what it means for the future of payments.
Global Wallet Dominance Signals Changing Consumer Preferences
Digital wallet spending reached an astonishing $41.0 trillion globally in 2024, representing the most widely used digital payment method across the world. While this figure remained relatively flat compared to 2023, this is largely due to a slight decline in China’s vast and relatively mature market—elsewhere, wallet growth has been significant.
Digital wallets now account for 83% of global digital payment volume, demonstrating their critical position in modern commerce. Importantly, the usage is fairly balanced across channels, with 51% of digital wallet volume spent in store and 49% online, showing their versatility as payment instruments.
Regional Variations Demand Tailored Strategic Approaches
One of the most fascinating aspects of digital wallet adoption is the stark regional differences in usage patterns and market maturity:
- Asia-Pacific dominates the global digital wallet landscape, accounting for $36.8 trillion of spending in 2024—approximately of global wallet volume. This is primarily driven by China’s unique ecosystem, where Alipay and WeChat Pay form a comprehensive payments infrastructure.
- The Americas contributed $2.2 trillion to global wallet volume, with adoption varying significantly by country. In Brazil, digital wallets represented 61% of total digital spending, substantially higher than in the USA (33%) and Canada (23%).
- EMEA (Europe, Middle East, and Africa) accounted for $2.0 trillion of spending, with wallets seeing rapid adoption. Local solutions like Bizum in Spain, Satispay in Italy, and Swish in Sweden have gained significant traction alongside international players.
Financial institutions (FIs) that fail to account for these regional disparities risk deploying ineffective, one-size-fits-all approaches that could surrender market share to more nimble competitors.
In-Store vs. Online: Usage Patterns Reveal Critical Channel Differences by Region
How consumers use digital wallets varies dramatically by region and provider:
- In Asia-Pacific, QR codes are prevalent for in-store transactions, while NFC technology leads in North America, Australia, and parts of EMEA.
- The xPays (mainly Apple Pay, Google Wallet, Samsung Wallet) are primarily used in store – for example, around 80% of Apple Pay’s volume is spent in store via NFC.
- In contrast, PayPal focuses primarily on e-commerce, with 96% of its volume online, offering buyer protection and streamlined checkout.
- Local wallet providers show interesting patterns—PicPay in Brazil sees 90% of its expenditure in store, while Bizum in Spain is used almost exclusively online.
These diverse usage patterns create complex challenges for FIs seeking to ensure consistent customer experiences across all payment touchpoints.
The Major Players: Global Giants and Local Champions
The digital wallet ecosystem features a mix of global powerhouses and strong local providers:
- The five largest digital wallets by purchase volume are Alipay, WeChat Pay, UnionPay QuickPass, PayPal, and Apple Pay, with the first three of these operating primarily in China’s vast market.
- Alipay and WeChat Pay account for more than 85% of China’s wallet volume, using QR codes in store and primarily account-funded.
- Apple Pay leads in several markets, including Australia, Canada, and the U.K., benefiting from high iOS penetration and seamless device integration.
- Local wallet providers have secured significant market share in many countries, with PicPay (Brazil), PayPay (Japan), Bizum (Spain), and Swish (Sweden) becoming national champions.
The Future Outlook: Strong Growth Ahead
Digital wallet spending is forecast to grow to $55.9 trillion by 2029, with particularly strong growth expected in less mature markets:
- In the Americas, wallet spending is projected to reach $4.5 trillion by 2029, with in-store purchases set to overtake e-commerce.
- The rollout of Wero by the European Payments Initiative (EPI) is expected to boost spending in multiple European markets, replacing existing solutions like stand-alone A2A method iDEAL in the Netherlands.
- In 2024, Apple announced that non-Apple wallets could access the iPhone’s NFC “Secure Element,” potentially reshaping the competitive landscape, especially in Europe.
What This Means for Consumers and Businesses
The continued growth of digital wallets represents a fundamental shift in payment behaviors with significant implications:
- For consumers, wallets offer enhanced security through tokenization, improved convenience with single-click checkouts, and additional features like loyalty programs integration.
- For merchants, wallet acceptance is becoming increasingly essential, with many consumers expecting these payment options both online and in physical stores.
- FIs are adapting by primarily supporting digital wallets through partnerships and integrations rather than competing with proprietary solutions.
As digital wallets continue to evolve beyond mere payment instruments to comprehensive financial tools, their influence on global commerce will only grow stronger. Learn more about how we are tracking global adoption of digital wallets and what it means for merchants, FIs, and consumers on our Global Digital Payments page.
