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

IoT Device Management Demand Gains Momentum

More forward-thinking CIOs and CTOs are focused on the adoption of the Internet of Things (IoT). Management challenges are top of mind for those who have already deployed a large number of sensors and associated network edge devices. Device management services are evolving in response to a greater breadth of new device technologies such as edge intelligence and related connectivity solutions, as well as the customer scalability and security of IoT deployments. But forward-looking suppliers are also preparing for a world where 41.3 percent of the connected devices will be using some form of Low Power Wide Area (LPWA) technologies by 2026. IoT Device Management Market Development Since IoT customers increasingly need to manage a larger fleet of connected devices, ABI Research now forecasts that IoT device management services will exceed $36.8 billion in revenues by 2026. Standardization is beginning to play a bigger role in device management services, as more connected devices use LPWA t

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut

Cloud Edge Computing Demand Continues to Grow

Public cloud computing solutions are moving closer to the edge of networks where CIOs and CTOs are hosting new apps. The edge journey is well underway for forward-looking organizations as they seek to connect with customers, improve operational efficiency, and adopt digital business technologies to drive innovation. The latest worldwide market study by International Data Corporation (IDC) found that three-quarters of organizations plan to increase their edge computing spending over the next two years with an average increase of 37 percent. A combination of factors is driving this increased spending at the edge. Cloud Edge Computing Market Development The performance requirements of expanding workloads and new use cases that leverage artificial intelligence (AI) and machine learning (ML) demand greater compute capacity at the edge. In addition, the amount of data being stored in edge locations are rapidly expanding, and organizations plan to keep this data longer. As a result, the numbe