Skip to main content

Digital Wallet Spending will Reach $10 Trillion in 2025

During the last decade, mobile app developers and start-up fintech vendors have offered a variety of innovative digital wallet solutions across global markets. Due in part to the COVID-19 pandemic and the move away from cash-based payments, digital wallet apps have gained rapid new user adoption.

Initially, digital wallets centered on providing easy eCommerce payments or consumer person-to-person payments. This early growth enabled large tech companies -- such as Google, Apple, and PayPal -- to launch services and achieve a presence across the online payments and global retail ecosystems.

Digital Wallet App Market Development

According to the latest worldwide market study by Juniper Research, the total consumer spending via digital wallet apps will exceed $10 trillion in 2025 -- that's up from an estimated $5.5 trillion in 2020.

Moreover, the research findings found a dramatic 83 percent growth in digital wallet spending will be fuelled by the heightened adoption of digital payment solutions during the ongoing global pandemic.

Digital wallets, where payment details are stored and accessed via a smartphone software application, have proven themselves as being both convenient and secure -- acting as a platform for future innovation and growth.

The market study identified that digital wallets are becoming increasingly capable of both in-person contactless payment and online remote payments via the public internet.

The Juniper Research analysts forecast that in 2025, contactless and eCommerce payments will account for 50 percent of total wallet spend, from just under 36 percent in 2020.


According to the Juniper assessment, upside growth opportunities make this a high-priority area where digital wallet providers need to maximize their commercial merchant networks.

The new research found that the rapid growth in digital wallet availability, coupled with rising adoption, has left merchants with difficult decisions around acceptance.

The market study identified integration costs for multiple digital wallets as challenging for merchants -- meaning that picking the best-performing wallets to select and focus on is highly important.

"Merchants must base their payment strategies around wallet acceptance in order to support a digitally-engaged addressable market, but must also judge the right wallets to target, or they will be lumbered with increased costs and limited benefits," said Alexandria Sadler, associate research analyst at Juniper Research.

The research also found that the increased use of contactless mobile payments during the pandemic, prompted by concerns around cash, has seeded greater wallet use across the payments’ ecosystem.

Outlook for Digital Wallet Applications Growth

Juniper analysts forecast that contactless adoption will rise, with over 34 percent of mobile phone handsets anticipated to use contactless payments in 2025 -- that's up from 11 percent in 2020.

This growth means that integrating contactless-enabled digital wallets within typical in-store retailer checkout processes will be critical to meet evolving mobile phone app user expectations.

I believe that financial services companies, such as traditional banks, may be able to identify niche applications where their online payment service offerings are viable. Many of these organizations are already pursuing a digital transformation agenda that could enable them to launch new platforms with associated partner ecosystems.

Popular posts from this blog

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Top 10 CFO Priorities Require Rethinking Finance

The Chief Financial Officer (CFO) role is essential to digital business growth. While CFOs do not get closely involved in the tactical details of the digital transformation of their functions, they still recognize its strategic importance. According to the latest survey by Gartner, CFOs are faced with the challenge of balancing the need for substantive digital business innovation with financial cost control and risk management. "CFOs will be stretched thinly across many activities in 2023. The survey revealed a wide range of actions CFOs plan to either lead or be significantly involved with," said Marko Horvat, vice president at Gartner. Survey Findings: The Top Ten Priorities Cost Optimization - Cost reduction remains the top priority for CFOs as they look for ways to cut costs and improve efficiency in their operations. This includes identifying cost-saving opportunities through automation, outsourcing, and business process improvement. Business Continuity - The global C