The study found that 53% of participants used digital wallets more than cash or debit/credit card swipes. Moreover, customers under the age of 30 are most affected. Youth are twice as likely as older users to utilize digital wallet apps to make purchases. A digital wallet and a global E-Wallet have become popular as a convenient alternative to cash or credit cards for paying for products and services. Although online payment methods are convenient, some buyers may need to spend more and prefer traditional payment methods.

Digital Wallet App Usage and Popularity in 2024

PayPal is the most popular global E-Wallet, and 69% of people use it in the USA only. According to expert analysis, the next most popular types of wallets are:

• Google Pay (56%)
• Apple Pay (53%
• Samsung Pay (52%)
• Venmo (49%)

Digital wallets are primarily used on smartphones and smartwatches and to maintain data on numerous bank accounts. However, many payment methods do you hold in your digital wallet. 43% have two banks owed money, and 33% have debit or credit score cards. Earners between $60,001 and $90,000 are more likely to have or have more related financial institution accounts (48%) and debit/credit playing cards than those earning much less than $30,000.

Who is Using Digital Wallets?

The survey matches economic digitalization trends. Digital wallets are becoming more popular among customers, as 64% stated they use them as often as traditional payment methods. People were also questioned about whether they would use digital wallets mostly. A huge 72% of respondents said they would use digital wallet data and payments for shopping and 58% for vacation. Some age groups were more receptive than others.

Generation Z (1826 years old) is most likely to use digital wallets for shopping (91%) and travel (86%). 78% of Gen Zers would stop shopping at a global E-Wallet merchant. It is not just digital natives who follow this trend. Digital wallets are also preferred by millennials and Gen Xers, with 59% and 50% of respondents between 27 and 42 and 43 and 58 utilizing them more than traditional means.

According to World Bank data, the worldwide pandemic certainly enhanced the usage of digital financial tools. Many consumers employed digital payment methods for the first time during the pandemic because contactless payment minimizes friction. Customers and businesses are coming to regard nontraditional types of wallets and payment methods as equal to or better than traditional ones due to fewer interactions and speedier checkouts.

Benefits of Digital Wallets

Consumers like digital payment options since they're simple. Convenience (41%), followed by rewards and loyalty programs (22%), was the main reason respondents used digital wallets to buy. If virtual payments had not been supported, customers would have changed their behaviors. At 51%, more youthful consumers are most likely to quit shopping at a merchant that doesn't take delivery of virtual wallets. A survey determined that seventy percent of Gen Zers, 55% of millennials, and fifty percent of Gen Xers have quit shopping at traditional organizations.

These data reveal more people view global E-Wallet payment choices as a need rather than a desire. This is especially true for wealthy people. Participants with a household income between $90,001 and $120,000 were most likely to discontinue buying at a merchant that didn't allow digital wallet data and payments (55%).

Another intriguing finding is that 35% of respondents utilize a digital wallet for both minor and major purchases. This means people prefer digital payment options for coffee and sofas. Digital wallets are most often used to buy from these businesses:

• Pharmacies (53%).
• Department shops (50%)
• Online retailers (50%)
• Events (49%).
• Bars and restaurants (47%).

Digital Wallet Usage Issues

Digital wallets are handy, but they can also cause clients to lose track of their spending and damage their budgets. A survey observed that 47% of Americans spend more using digital wallets than other types of wallets with cards or cash. Younger generations overspend digitally. With digital wallets, 60% of Gen Xers and 51% of millennials spend more, followed by 41% of Gen Xers and 28% of baby boomers.

Digital payments increase high-earners' spending. The survey found that 61% of respondents with household incomes over $150,000 spent more money owing to virtual wallets, in comparison to 30% of those beneath $30,000. Middle-earnings individuals ($60,001 to $90,000) additionally spent greater, with 44% saying they did. Additionally, convenience was the top reason high-income workers (between $90,001 and $120,000) used digital wallets while tracking purchases was the top reason respondents under $30,000 used them. Low-income earners may be more prone to check their expenditures with digital payment methods.

Digital global E-Wallet users often lose track of their spending. 67% of Americans believe they always or sometimes lose track of digital wallet data and spending. This includes 41% of Gen Zers who always lose track of their digital wallet spending. Gen Xers (54%) and millennials (46%) told us they sometimes lose track of their spending.

Digital Wallet Spending Management Tips

A survey indicates that customers like digital wallets but acknowledge that they may lose track of their spending. This makes it hard for digital wallet users to budget and makes it easy to overspend.

Here are some tips for managing your digital wallet spending.

• Plan your spending. Use your digital wallet data like you would your monthly expenses. If you use it often, track your coffee and takeout expenses.
• Set reminders and alerts for budget overruns. After setting a budget, set reminders and notifications to avoid overspending. This will always track your spending. Some digital wallets feature spending limits. Instead, find a bank that accepts digital wallet data and payments and lets you establish limitations.
• Review your transactions on regular money dates. In addition to budgeting, evaluate your transactions. Verifying your transactions against your purchases might help you budget and prevent fraud.
• Use a budgeting tool to track spending. If you still need to do so, review your expenses with Mint or YNAB. Many types of wallets sync to multiple accounts, making transaction categorization easy.