Digital wallets to make 46% of all POS transactions by 2027

Although COVID-19 has had a significant role in the global shift toward digital wallets, the number of people using these online payment tools continues surging even five years after the pandemic.

In 2022, there were 3.4 billion digital wallet users worldwide; this figure is expected to jump to 5.2 billion by 2026, representing 60% of the global population.

As the number of digital wallet user rises, so does their market share in total point of sales (POS) transactions.

According to data presented by Stocklytics.com, digital wallets are expected to make 46% of all POS transactions by 2027.

Digital wallets like Cash Pay, Apple Pay, Google Pay, Venmo, and Zele have taken the payments industry by storm, becoming the number one payment option among billions worldwide, mostly tech-savvy Gen Z-ers and Millennials. Their many conveniences at no extra cost for most transactions continue drawing more and more users, helping digital wallets grow their market share to all-time highs.

According to the 2024 Global Payments Report from Worldpay, digital wallets made close to 30% of all POS transactions last year, more than any other payment method. Credit cards ranked as the second most-used payment method, with a 27.4% share in POS transactions. Debit cards, cash, and prepaid cards followed, with 22.7%, 16.4%, and 2.5% shares, respectively.

According to the Worldpay survey, digital wallets will increase their market share significantly in the following years. By 2027, these apps will make up almost 46% of all POS transactions or 16% more than last year. On a negative note, the market share of all other payment options will decline.

Credit cards will see their market share drop by more than 5% to 22% in the next three years. Statistics show debit card payments will make up only 18% of all POS transactions in 2027, or 4% less than last year, while cash payments will see the biggest decline, making only 11% of all point-of-sale transactions in 2027.

Besides growing their market share to an impressive 46% by 2027, digital wallets will also see their transaction value skyrocket in the following years.  In 2023, people worldwide made $10.8 trillion of digital wallet payments, twice as much as credit card payments, and four times more than all cash payments made the same year. According to the Global Payments Report, this figure will surge by 81% in the next three years, with digital wallets hitting $19.6 trillion in transaction value.

This figure is even more impressive when compared to other payment methods, which will all see their transaction values drop. By 2027, the total transaction value in the credit cards segment will amount to $9.39 trillion, down from $10 trillion last year. Debit card transactions will drop from $8.3 trillion to $7.6 trillion, while cash payments will slump from $6 trillion to $4.7 trillion in this period.