Digital Wallets Transaction Value to Surpass $16 Trillion by 2028

The total value of digital wallet transactions will rise from $9 trillion in 2023 to surpass $16 trillion in 2028, a rise of 77%, according to Juniper Research. This trend is driven by growth across both developed and developing markets, as the increased adoption of advanced services such as BNPL (Buy Now Pay Later), microloans, and personal financial management drive end-user engagement. The study found that in a highly congested wallet landscape, diversifying their appeal to users is vital.

The report identified advanced services as a key source of revenue growth for digital wallets. Advanced services, such as BNPL or micro-loans, are allowing digital wallet providers to diversify their revenue. The popularity of BNPL, especially among younger consumers, will draw greater numbers of users, and generate additional revenue. This approach can be seen with Apple’s roll-out of numerous add-on services, including Apple Pay Later.

“Advanced services give digital wallet providers an opportunity to differentiate themselves in a congested market and generate additional revenue. Super app strategies, which many digital wallets are pursuing, will rely on the effective deployment of advanced services at scale,“ said research author Michael Greenwood.

The research found that security benefits are a key driver of digital wallet use in eCommerce in developed markets. Many consumers do not wish to enter card information online. With digital wallets, this issue is reduced, as tokenization enables card and other payment information to be used in a highly secure way. The research also identified that as digital wallets become broader, including elements of digital identity, convenience will play a greater role, enabling wallet services to act as more of an all-inclusive app for financial well-being.