Digital Wallets Set to Surpass Debit Cards in Physical Stores

According to a recent report by Worldpay, digital wallets are poised to revolutionize in-store payments, overtaking traditional debit cards by 2027. Already dominating e-commerce transactions, digital wallets are expected to reshape the landscape of physical retail transactions in the coming years.

Worldpay's projections indicate a significant shift in consumer behavior, with digital wallet usage forecasted to more than double by 2027, reaching 31% of point-of-sale transaction value, compared to debit cards at 23%. This trend reflects a broader global adoption of digital payment methods, driven by the convenience and security they offer.

Jason Pavona, Worldpay's General Manager, highlights the rapid growth and widespread acceptance of digital wallets, noting their increasing ubiquity in everyday transactions. This shift is further emphasized by the decline projected for credit card usage, expected to drop from 41% to 34% by 2027.

However, the report suggests that while digital wallets may surpass debit cards in physical stores, they won't replace credit and debit cards entirely. Instead, consumers are likely to integrate digital wallets alongside traditional cards, contributing to the overall rise in digital payment transactions.

Gabriel de Montessus, Head of Global Enterprise at Worldpay, emphasizes that digital wallets serve as a mechanism for transmitting payments, reflecting the broader trend away from cash towards alternative payment methods.

In e-commerce, digital wallets already outpace credit and debit cards, accounting for 37% of transaction value in 2023. By 2027, they are projected to further increase their dominance, capturing 52% of e-commerce transaction value.

Globally, digital wallets have already claimed the top spot for share of point-of-sale transaction value, with wallets projected to represent 46% of spending by 2027, surpassing credit and debit cards combined.

The report underscores the transformative impact of digital wallets on the payments landscape, signaling a fundamental shift towards digital-first payment solutions in both online and offline retail environments.