35% of Online Purchases Now Flow Through Mobile Wallets

Mobile wallet use is spreading, but these digital apps aren’t replacing credit and debit cards. They’re burying them.

The PYMNTS Intelligence report “Pocket Revolution: How Mobile Wallets Are Changing Payments Worldwide” found that across 11 countries representing half of global GDP, mobile wallets now handle 35% of online purchases and 21% of in-store transactions. Yet the funding rails remain the same cards and accounts consumers have always used. The card, once a visible symbol of spending power, is fast becoming an invisible credential sitting behind the glass of a phone.

The report is based on more than 216,000 consumer surveys between 2022 and 2024. It finds that consumers are not switching away from their trusted payment methods so much as changing the form factor they use to access them.

Tap-to-pay convenience, biometric authentication and stored credentials are pulling cards out of wallets and embedding them into mobile devices. Adoption patterns are highly local. Japan and Singapore lead with QR code-driven wallets, while France and the United States lag as contactless plastic remains easy and familiar.

Key Data Points

Across the 11 countries studied, 35% of online and 21% of in-store purchases are now completed with mobile wallets, up 5.2 and 10.9 percentage points, respectively, since 2022.

A 23% rise in Generation Z’s in-store wallet usage since 2022 shows younger consumers are setting the pace, but adoption is growing among millennials, Generation X and baby boomers, too.

A total of 8% of in-store transactions now flow through local wallets, such as Brazil’s Pix and the Netherlands’ iDEAL, underscoring the power of trusted domestic substitutes over global brands.

What the data underscores is a deeper shift. The consumer experience, not the payment rail, is the battlefield. Mobile wallets are winning because they shave seconds off checkout, reduce friction with biometric login and promise rewards or real-time settlement.

That is why wallets thrive in Japan and Singapore, where QR codes and real-time rails create obvious advantages, but lag in France and the U.S., where contactless cards already deliver speed and familiarity.

The report also reveals wallet adoption is becoming income-agnostic. Low-income consumers have increased their wallet use more than wealthier peers, suggesting wallets are not luxury tools but low-cost enablers of everyday spending. That flattens a long-held assumption that digital wallets are the preserve of young, urban, affluent shoppers.

Finally, consumer motivation is fragmenting. PYMNTS segments users into four personas: Committed (18%), Persuadables (39%), Dabblers (28%) and Skeptics (15%). That spread suggests wallets are still in transition from novelty to necessity. For merchants and issuers, the challenge is no longer whether to support mobile-first payments but how to tailor them with rewards, simplicity or seamless cross-border use to each persona.