How Consumers Are Expanding Digital Wallet Use

Consumers are increasingly leveraging digital wallets for a variety of functions beyond payments, with Generation Z at the forefront of this trend. The PYMNTS Intelligence report “Digital Wallets Beyond Financial Transactions,” created with Google Wallet, reveals that only 48% of Gen Z always carry a physical wallet, compared to nearly two-thirds of the overall population. Additionally, 27% of Gen Z have stored access and payment credentials in digital wallets over the past year.

While transactions are still the most common use, with 41% of consumers likely to use digital wallets for financial transactions next year, other functions are gaining popularity. Age or identity verification (29%), storing rewards or coupons (28%), and accessing event tickets (25%) are among the emerging uses.

Convenience plays a significant role, with one in three consumers stating that having a digital wallet always available boosts their likelihood of using its features. Moreover, 30% appreciate the low or no cost of these features, and a similar percentage value the high security offered.

Despite these benefits, nearly half of skeptical consumers remain unconvinced about adopting digital wallets. Nonetheless, the future looks promising as digital wallets evolve, driven by convenience, security, and multifunctionality, reshaping everyday interactions beyond payments.

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