October 19, 2017
Global growth in e-commerce continues to nudge the adoption of digital wallets higher—even in the U.S.—with a surge expected in the next five years, according to a new report from Worldpay. The London-based e-commerce processor and acquirer found that, around the world, credit cards were still the dominant way to pay in 2016 (29 percent of total transactions globally vs. 18 percent for digital wallets and 17 percent for bank transfers), but that by 2021 digital wallets will account for 46 percent of all transactions globally. Credit cards’ share will have fallen to 15 percent of all transactions in five years while bank transfers will hold virtually steady.
In its 2017 Global Payments Report, Worldpay said it expects digital wallets to be the dominant form of online payment by 2021 in every major region (including North America) except Latin America, where credit cards will still hold a slight edge (27 percent vs. 22 percent for wallets and 21 percent for bank transfers.
Another recent report from JP Morgan said digital wallet adoption in the U.S. paused last year, but corroborated the notion that a surge would be coming soon.
“The adoption of mobile payments in the U.S. has been gradual, but we’re finally seeing its popularity grow with consumers,” says Casey Bullock, general manager of North America and Global eCom at Worldpay. “People of all ages are becoming more familiar with the technology, and are also becoming more confident in its security. As niche payment options continue to take off, businesses will have to adapt—updating both in-store and online payment options to accommodate for the changing consumer preferences in all of the markets they operate in and the new sales channels that come with them.”