Growing digital wallets move US$14 trillion in e-commerce and physical stores

Digital wallets are the main payment choice of people in e-commerce, and in the last year, they represented 50% of global spending (> US$ 3.1 trillion) and 30% of global spending on points of sale (> US$ 10.8 trillion). Still as the fastest growing payment method in the world, by 2027 digital wallets are expected to represent more than 25 trillion dollars in value transacted globally (49%) in e-” and PDVs. The information is from the new study of Global Payments 4, Global Payments by Global 4 means, World Paypa World by World.

The report is in its 9th edition and brings a mapping of 40 markets representing 88% of global GDP (Gross Domestic Product). Developed in 5 regions of the world, the study highlights not only the current scenario of the means of payments worldwide, but also addresses projections for the next four years.

With exponential growth, digital wallets have already become the preferred payment method in Asia, Europe and North America.By 2027, this method is expected to lead e-commerce payments in all regions of the world”, says Juan Pablo D’Antiochia, Worldpay Senior Vice President for Latin America.

• E-commerce: US$ 3.1 trillion
• Point of Sale: US$ 10.8 trillion
• Total US$14 trillion

Growth forecast for digital wallets between 2023-2027:

• E-commerce: 15% CAGR (Composite annual growth rate)
• Point of sale: 16% CAGR (Composite annual growth rate)

But what are digital wallets?

Digital wallets are applications that securely store payment credentials, allowing consumers to pay for goods and services in e-commerce and physical stores simply, quickly and securely. Worldpay's rating broadly includes digital wallets that facilitate card transactions, stored value wallets and mobile money wallets, and includes global brands such as Alipay, Apple Pay, Google Pay, M-Pesa and PayPal, as well as local and regional digital wallets. In 2023, digital wallets accounted for 50% of global e-com spending (> US$ trillion) and 301010000 trillion).

Latin America & Destaques in payment methods:

· Argentina leads the region in e-commerce payments with digital wallets (almost twice as many transactions as in Brazil; and physical money is the most used method in points of sale. In the last year, 31% of e-cmmerce transactions were carried out by this means in Argentina. In Brazil, the number is 16%.

· Chile has one of the lowest rates of debanking in Latin America, with the World Bank reporting that 87% of Chilean consumers surveyed (2021) who had some type of financial account. This strong financial inclusion helps differentiate the country in the use of debit cards (31%) and in POS (37%).

· In Colombia, “A2A” (Account to Account) payments accounted for 25% of e-commerce value in 2023, and are expected to grow 20% CAGR between 2023-2027.

· In Mexico, the A2A growth forecast of 19% CAGR 2023-27 would see the share of this payment method increase from 6% to 8% of online spending, depending on consumer choice in a historically very stable market.

the Central Bank of Mexico, Banxico, is trying for the second time to create a successful real-time payment system, aimed at the consumer.

In March/2023, Banxico launched DiMo (Dinero Movil), an A2A service that works on SPEI, Mexico's real-time gross settlement system.DiMo has an improved user experience, and although bank participation is not mandatory, the country's leading banks and financial service providers seem enthusiastic about the new scheme. While CoDi used QR codes, DiMo is based on phone numbers.

Global 'This

· Digital wallets lead e-commerce in Europe in general, and in five markets (Denmark, Germany, Italy, Spain and the United Kingdom). Representing 30% of the value transacted in e-commerce in 2023, they are expected to grow 17% CAGR until 2027, when they will represent about 40% of the value of e-commerce.

the adoption of digital wallets is accelerating at POSs in Europe.

· Debit cards are overwhelmingly preferred by Europeans at the POS and represent 41% of the amount transacted at POSs across Europe in 2023 2.7 trillion dollars (almost double the share of credit cards, 21%).