Digital wallets are the main payment choice for people in e-commerce, and in the last year, represented 50% of global spending (> US$ 3,1 trillion) and 30% of global spending at 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 over 25 trillion dollars in globally transacted value (49%) in e-commerce and at points of sale. The information comes from the new study conducted by Worldpay, LLC ®, global leader in payment solutions, "The Global Payments Report 2024"
The report is in its 9th edition and provides a mapping of 40 markets that represent 88% of global GDP (Gross Domestic Product). Developed in 5 regions of the world, the study highlights not only the current landscape of payment methods worldwide, but also addresses projections for the next four years
"With exponential growth", digital wallets have become the preferred payment method in Asia, Europe and North America. Until 2027, this method should lead e-commerce payments in all regions of the world”, says Juan Pablo D'Antiochia, Senior Vice President of Worldpay for Latin America
- E-commerce: US$ 3,1 trillion
- Point of Sale: US$ 10,8 trillion
- Total of US$14 trillion
Growth forecast for digital wallets between 2023-2027:
- E-commerce: 15% CAGR (Compound Annual Growth Rate)
- Point of Sale: 16% CAGR (Compound Annual Growth Rate)
But what are digital wallets
Digital wallets are applications that securely store payment credentials, allowing consumers to pay for goods and services in e-commerce and physical stores simply, fast and safe. Worldpay's classification broadly includes digital wallets that facilitate card transactions, stored value wallets and mobile money wallets, and includes global brands such as Alipay, Apple Pay, Google Pay,M-Pesa and PayPal, as well as local and regional digital wallets. In 2023, digital wallets accounted for 50% of global e-commerce spending (> US$ 3,1 trillion) and 30% of global spending on POS (> US$ 10,8 trillion
Latin America – Highlights in payment methods
Argentina leads the region in e-commerce payments with digital wallets – almost double the transactions of Brazil; and cash is the most used method at points of sale. In the last year, 31% of e-commerce transactions were made through this means in Argentina. In Brazil, the number is 16%
Chile has one of the lowest rates of unbanked individuals in Latin America, with the World Bank reporting that 87% of surveyed Chilean consumers (2021) had some type of financial account. This strong financial inclusion helps to differentiate the country in the use of debit cards – today, the main online payment method (31%) and at POS (37%)
· Already in Colombia, A2A payments (Account to Account) accounted for 25% of the e-commerce value in 2023, and should grow 20% CAGR between 2023-2027
In Mexico, the growth forecast of A2A, of 19% CAGR from 2023-27, I would see the participation of this payment method increase from 6% to 8% of online spending, depending on the consumer's 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, focused on the consumer
· Em março/2023, Banxico launched DiMo (Mobile Money), an A2A service that works in SPEI, the real-time gross settlement system of Mexico. DiMo has an enhanced user experience and, although the participation of banks is not mandatory, the main banks and financial service providers in the country seem excited about the new scheme. While CoDi used QR codes, DiMo is based on phone numbers
Global – Highlights
Digital wallets lead e-commerce in Europe overall, and in five markets (Denmark, Germany, Italy, Spain and the United Kingdom. Representing 30% of the value transacted in e-commerce in 2023, should grow 17% CAGR by 2027, when they will represent about 40% of the value of e-commerce
The adoption of digital wallets is accelerating at points of sale in Europe
Debit cards are overwhelmingly preferred by Europeans at the point of sale and account for 41% of the transaction value at POS across Europe in 2023 – more than 2,7 trillion dollars (almost double the share of credit cards, 21%)
