Digital wallets to make up almost half 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 to surge even five years after the pandemic, says a report from Stocklytics.com. 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 percent of the global population.

As the number of digital wallet user rises, so does their market share in total point of sales (POS) transactions. The report estimates digital wallets will make up 46 percent of all POS transactions by 2027. This compares to roughly 30 percent of all transactions in 2023.

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.

Credit cards ranked as the second most-used payment method, with a 27.4 percent share in POS transactions. Debit cards, cash, and prepaid cards followed, with 22.7 percent, 16.4 percent, and 2.5 percent shares, respectively.