China tops the list with 87.3% of citizens adopting mobile wallets

China tops the list with 87.3% of citizens adopting mobile wallets

The mobile wallets market has been steadily growing until 2019 when the coronavirus pandemic has begun. As Merchant Machine reports, between 2019 and 2020 the number of users has nearly doubled.

The safety, security and convenience of digital wallets as well as the popularity of smartphones and general digitalisation of society were among the main reasons for the popularity of this method.

In terms of revenue, since 2015 the total revenue generated by mobile payment apps has nearly tripled and is expected to reach over 1639.5 trillion by the end of 2022.

Next-Gen Payment Technology Market

Year

Transaction value in billion ($)

Users in billion

Revenue ($) trillion

2015

1592.2

0.4

550

2016

2211.25

0.5

660

2017

3104.33

0.8

780

2018

4296.67

1

960

2019

6109.64

1.4

1100

2020

8961.22

2.3

1390

2021

11141.55

2.307

1476.7

2022

13979.85

2.661

1639.5

Over half (51.7%) of all transactions predicted to be cashless by 2024

Merchant Machine revealed our shifting shopping patterns have influenced the rapid adaptation of digital wallets. It comes at no surprise that in 2024 mobile wallets are predicted to be adapted by more than half of the overall population. More traditional methods such as credit or debit cards will be slowly entering the decline phase.

The physical aspect of payment methods is clearly affecting our payment preferences. Our society is opting for more convenient contactless methods and the cash participation in our transactions will be decreasing.

Besides mobile wallets, the only method of payment that will see an increase in popularity among consumers is Buy Now, Pay Later schemes such as Klarna or Clearpay. These methods are particularly popular among Millennials and Generation Z users due to the possibility of splitting the cost into monthly installments.

Global e-commerce payment methods

Payment Method

2020

2024

Digital/Mobile Wallet

44.50%

51.70%

Credit Card

22.80%

20.80%

Debit Card

12.30%

12.00%

Bank Transfer

7.70%

5.30%

Cash on Delivery

3.30%

1.70%

Charge & Deferred Debit Card

3.30%

1.60%

Buy Now Pay Later

2.10%

4.20%

Direct Debit

1.20%

1.00%

Prepaid Card

1.10%

0.50%

PostPay

0.90%

0.50%

PrePay

0.40%

0.20%

Other

0.40%

0.40%

Biggest players: WeChat & Alipay

Merchant Machine identified which digital wallets are leading in regards to the number of users worldwide. The revolutionary mobile payment platforms, WeChat and Alipay, have amassed 650 million and 550 million users respectively.

According to Focus Finance, when Alipay introduced E-Wallets, that usage began to increase substantially. ‘Alibaba was able to seamlessly integrate AliPay into their online marketplace and easily acquire new users by cross-marketing it with their current service offerings”, they explained.

Other platforms that made it to the top five include Apple Pay (507 millions), Google Pay (421 millions), and PayPal (377 millions). Their popularity in Europe and North America is down to mobile brands such as Apple and Samsung whose products are dominating the market.

Number of users of leading mobile payment platforms worldwide 2022

Digital Wallet

Users in Millions

Alipay

650

WeChat Pay

550

Apple Pay

507

Google Pay

421

PayPal

377

87.3% of Chinese citizens adopt mobile payments 

According to a study conducted by Merchant Machine, China is revealed as the country with the biggest adoption of mobile payments among its citizens. The common usage of contactless payments in China is down to society utilising tech solutions in every aspect of their life.

Technologically advanced Nordics have also made it into the top 10, with Denmark (2nd), Sweden (5th) and Norway (8th) seeing the biggest increase in people using contactless payment methods.

It was additionally found that US citizens’ adoption of mobile wallets has increased by over 14% between 2019 and 2021, which is the most significant out of all countries on the list.

Adoption of mobile contactless/tap to pay (%)

Country

2019

2021

China

81.1

87.3

Denmark

40.9

India

37.6

40.1

South Korea

36.7

45.6

Sweden

36.2

United States

29.0

43.2

Canada

26.0

29.1

Norway

25.8

Japan

25.3

34.9

Switzerland

22.3