Digital Wallets Will Dominate Global E-commerce Payments by 2025

By 2025 digital wallet use will account for 52.5% of ecommerce transaction value worldwide, versus 48.6% in 2021, according to the FIS Global Payments Report. At physical points of sale, the report states, digital wallet use will rise to nearly 39% about ten percentage points higher than 2021 levels.

Increasing and maturing usage will occur 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 represented about 25% of transaction value in 2021.

Globally FIS projects that 12% of global consumer spending will be conducted via ecommerce by 2025. Growth rates will slow in Asia-Pacific, which is already a major factor, but will continue growing faster in Latin America and the Middle East.

The study forecast a share of the total ecommerce transaction value of over 5% by 2025 for Buy now, pay later (BNPL), attributed to its common interest-free form made popular by nonbanks, some of which have been experiencing difficulties.

The report noted a continuing shift from using cash and credit cards. However, much of the volume paid through wallets draws on credit and debit cards linked to the wallet

The report reveals that the growth in digital wallet usage in online and mobile commerce will be driven by digital wallets offering superior checkout solutions, flexibility in underlying payment methods, their anchor role in e-com marketplace ecosystems, and local wallets consolidating into regional and global super apps.

By 2025 about 60% of ecommerce will be conducted via mobile devices globally, versus online, according to the report.