Report Shows 70% of US P2P Payments Are Mobile

While U.S. consumers enthusiastically embrace digital wallets for sending money to friends and family, they notably trail several other developed nations in adopting mobile payments at physical store locations, highlighting a bifurcated digital payment landscape stateside.

According to “How the World Does Digital,” a data-driven deep dive into the global payment shift, digital and mobile wallets are increasingly leading online purchases and showing significant growth for in-store transactions. This global trend is particularly propelled by younger generations, specifically Gen Z, and is most pronounced in Asia-Pacific markets.

The report indicates that consumers are drawn to mobile wallets for their convenience, speed and enhanced security features, facilitating instant, touchless payments without the need for traditional card swipes or manual entry of bank details. In-store digital wallet adoption has seen a notable 12% uptick since 2022, now accounting for 20% of in-store transactions and positioning mobile payments as the fastest-growing in-store payment method.

This movement is coupled with a decline in the use of traditional payment methods for in-store purchases, such as “other cards” (like gift and prepaid cards), credit cards and cash. Digital/mobile wallets now also lead online payment methods, accounting for 34% of online transactions and showing a 5.7% increase since 2022, while credit card usage online has declined by 5.4% in the same period. The report underscores that this indicates a clear shift away from legacy payment methods toward mobile-first options across both online and physical retail environments.

Key data points concerning digital engagement in the United States from the report include:

Peer-to-peer (P2P) payments utilizing a digital wallet are described as the norm in countries like the United States (70%), Germany (73%) and Japan (67%). The report highlights that these mobile-based P2P transactions in the U.S. account for more than two-thirds of all such transfers, effectively overtaking traditional bank transfers and underscoring a strong consumer preference for convenience-driven, app-based transfers. By the end of 2024, 55% of consumers globally reported using a mobile device for a P2P transaction, an increase from 52% in 2022.

Despite the strength in P2P, the U.S. is behind several other countries in adopting mobile payments for in-store transactions, with only 17% of consumers reporting using this method for their last purchase at the point of sale. This places the U.S. adoption rate below countries like Japan (35%), Singapore (27.1%) and even the sample average (20.0%), although ahead of countries like France (13%) and Brazil (15%). U.S. in-store usage stands at 17.4% based on percentage change calculations from 2022-2024 data.

The report suggests that the U.S. may be held back in in-store mobile adoption by factors such as outdated payment terminals, slower technological adoption rates and consumers’ continued strong ties to traditional card-based and cash methods. While mobile payments represent 20% of in-store transactions globally as the fastest-growing method, the U.S. figure of 17% (or 17.4% based on percentage change data) indicates room for significant growth.

Beyond specific trends in the United States, the report also details shifts in payment method usage across different demographics, noting Gen Z’s leading role in the mobile revolution for in-store transactions with a significant +24.4% change since 2022. It observes generational nuances, including baby boomers showing a 9% increase in mobile payment adoption, and highlights how bank transfers are gaining ground among younger digital natives, as well as low-income (+16%) and middle-income (+13%) consumers in-store, signaling a move toward direct account-to-account payments.

The analysis further provides country-specific data, showcasing in-store digital wallet adoption leaders like Japan and Singapore versus countries like Germany and France, which retain stronger ties to cash and cards, while noting significant shifts like the Netherlands experiencing a dramatic handoff from credit cards to mobile payments in-store (34% mobile gain and 21% drop in credit card usage). Brazil is noted for a significant increase in bank transfers for both in-store (+46%) and online (+30%) payments, potentially linked to the adoption of open-banking and local wallets like Pix and Boleto Bancario.