The global payment landscape is undergoing a quiet but profound transformation, with the widespread adoption of mobile wallets hinging less on technological availability and more on a nuanced understanding of consumer behavior and underlying motivations.
A new report from PYMNTS Intelligence, titled “Pocket Revolution: How Mobile Wallets Are Changing Payments Worldwide,” offers an ongoing analysis of global digital engagement, examining how mobile wallets and mobile-first payments are reshaping how consumers transact both online and in-store. Based on a survey of 216,679 consumers across 11 countries representing half of the world’s GDP, the study was conducted over 12 periods from January 2022 through December 2024. It reveals that mobile wallets now power 35% of online transactions and 21% of in-store transactions across these nations, marking increases of 5.2% and 10.9% respectively since 2022.
This shift signifies a change in the “form factor” — the device or method used for payment — rather than a fundamental alteration in the underlying funding sources like credit or debit cards. Consumers are increasingly using mobile-first experiences, digital wallets, wearables and stored credentials to access familiar payment methods more quickly and securely. The report highlights that mobile wallets offer benefits such as faster checkout, biometric security and embedded rewards, aligning with rising consumer expectations for convenience and control. Adapting to these mobile-first behaviors is now considered a fundamental requirement for businesses to remain competitive.
Beyond the aggregate figures, the report reveals several key insights into the dynamics of mobile wallet adoption:
- Motivation, not just demographics, drives adoption: The report introduces a persona analysis, segmenting consumers into four groups based on their probability of using digital wallets and their value perceptions, emphasizing that adoption is driven by motivation, not solely demographics. The “Committed” consumers (18% of the population) are digitally fluent, young, employed individuals who see mobile wallets as their primary payment method and show high interest in financial technologies like super apps. The “Persuadables” (39%), typically employed millennials with some FinTech interest, use wallets regularly, especially online, but may switch methods. In contrast, “Dabblers” (28%) use wallets occasionally, often out of necessity or curiosity, without fully integrating them into their routine. Lastly, “Skeptics” (15%) are older, less employed individuals with minimal interest in digital wallets or financial technologies.
- Online dominance with varying commitment: Consumers are 50% more likely to use digital wallets for online purchases than for in-store transactions. This tendency holds true across all persona groups, but the likelihood of using wallets both online and in-store significantly increases with a consumer’s “commitment” level. This suggests that while online convenience is a strong driver, in-store adoption still faces hurdles, often tied to merchant strategies and existing habits like contactless card usage.
- Beyond income and geography: Surprisingly, the study found that income levels and whether consumers live in cities or rural areas are not significant predictors of mobile wallet adoption. This indicates that mobile payments are increasingly becoming essential, low-cost tools for everyday spending across all economic strata and locations, not just premium experiences or urban conveniences. However, other factors do predict usage: employed individuals are more likely to use wallets, as are men compared to women (with men having a 39% probability versus 34.2% for women). Those interested in financial technology apps, such as super apps, and those who use mobile banking apps are also more likely to adopt digital wallets.
The report also explores the highly localized nature of mobile wallet adoption, noting that markets like Japan and Singapore are leading the trend due to factors like real-time rails, QR code integration and robust digital trust. In contrast, countries such as France and the U.S. face challenges in breaking entrenched card habits. The study underscores that winning in this mobile-first landscape requires delivering real consumer value and tailoring experiences to local behaviors and expectations, rather than a one-size-fits-all approach.
