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Over two-thirds of the world to own digital wallets by 2029, research shows

By Gloria Methri

January 16, 2025

  • Africa
  • Alipay
  • Apple Pay
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Contactless Payments, Digital wallets, Open Banking, FinTechThe era of digital payments is rapidly expanding, and according to a recent Juniper Research study, the future is overwhelmingly mobile. By 2029, more than two-thirds of the global population—a staggering 5.4 billion people—will own a digital wallet, marking a dramatic rise from 52.6% in 2024. This 15.3% growth underscores the increasing dominance of digital wallets in the global financial landscape.

At the heart of this transformation is the ease of acceptance. Unlike traditional card payments that require hardware setups, digital wallets simplify the payment process for merchants through technologies like QR codes and NFC-enabled mobile devices. The concept of mPOS (mobile point of sale) is redefining payment infrastructure, enabling even small merchants to participate in the digital economy.

Apple’s decision to unlock its devices’ NFC capabilities for third-party wallets is expected to intensify competition. For example, wallets like Vipps in Norway can now compete directly with Apple Pay, offering consumers more options and fostering innovation in the sector.

Bridging the Financial Inclusion Gap

The study highlights the pivotal role of digital wallets in expanding financial inclusion, particularly in emerging markets. By offering micro-loans and basic insurance products, wallets can cater to underserved communities. M-PESA’s remarkable success in Kenya is cited as a model for wallets looking to innovate in this space.

Michael Greenwood, the report’s author, emphasised the importance of leveraging mobile financial service licenses. “These basic financial services allow wallet providers to diversify revenue streams. These providers must take advantage of mobile financial service licenses, where available, as they are often associated with a lower regulatory burden than full banking licences. This lower burden gives wallets more room to innovate,” he explained.

Digital Wallets Set to Dominate eCommerce

The rise of digital wallets is already reshaping the eCommerce landscape, with predictions suggesting they will account for 53% of all online transactions by 2025. According to Alexander Berrai, Deputy CEO at emerchantpay, this growth is driven by the convenience of one-click payments, the ability to store multiple cards and currencies, and the seamless integration of rewards programs. Travel, a major vertical for digital wallet adoption, is also expected to benefit as wallets simplify instant reservations and eliminate repetitive payment entries.

Berrai also pointed to the evolution of super wallets, platforms that integrate payments, shopping, social interactions, and more—pioneered by China’s WeChat and Alipay. While regions like Africa and Latin America are primed for rapid adoption due to less developed financial infrastructure, Europe and North America face slower growth, hampered by entrenched card usage and stringent regulations. “For widespread adoption to occur, it will be essential to build consumer trust, streamline regulatory processes, and demonstrate clear value through integrated services,” Berrai noted.

Despite the optimism, challenges remain. Expanding the adoption of super apps in regions with established financial systems will require overcoming consumer hesitation and regulatory hurdles. Moreover, as wallets diversify into microloans and insurance, providers must innovate responsibly, ensuring sustainable growth while addressing region-specific needs.

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