Digital wallets are omnipresent today. You’re probably wondering what drives their annual double-digit growth. Well, they’re convenient, secure, and simple to use. Yet, that’s not all the reasons. Social commerce stands out among numerous other factors, catalysing digital wallet adoption in a discrete yet powerful way.
Digital Wallets Explained
What’s a digital wallet, anyway? Whether it’s Zelle, Apple Pay, or MetaMask, all digital wallets perform the same function – storing your financial information and linked assets, just like your physical wallet stores cash, cards and coins.
However, digital wallets are much more multifunctional than a wallet you have in your pocket. They allow you to make payments and money transfers with a single tap, manage cryptocurrencies, access certain events and facilities with virtual cards or entry passes, and authorise online transactions.
Depending on their type, digital wallets may be linked directly to a user’s bank account or crypto exchange account, or store information about one’s credit and debit cards. Some of them are created by fintech companies, while others are developed by banking institutions.
Most Popular Digital Wallets
Among the most widely used digital wallets worldwide are:
Alipay
- User Base: 1.6 billion
- Transaction Volume: $18 trillion in 2023
WeChat Pay
- Active Users: 1.3 billion
- Transaction Volume: About 1 billion transactions daily
Apple Pay
- Active Users: 640 million globally (+26% YoY)
- Transactions: 1.8 billion processed in 2024 (40% YoY growth)
PayPal
- Active Accounts: 434 million (+2.1% YoY)
- Total Payment Volume: $1.68 trillion in FY 2024 (10% YoY)
Google Pay
- Global Users: 150 million
- Transaction Volume: about 66 billion transactions in 2024, primarily through UPI in India
Cash App
- Monthly Active Users: 57 million
- Annual Inflows: $283 billion in 2024
Revolut
- Customers: 52.5 million
- Transaction Volume: £1 trillion in 2024 (52% YoY growth)
MetaMask
- Monthly Active Users: 30 million
- Swap Revenue: $325 million cumulative from MetaMask Swaps
Global Adoption
The number of digital wallet users worldwide stood at 3.4 billion, which is over 40% of the global population, in 2022. With projections of rapid growth, their number today is approximately 4,75 billion people – almost 60% of the global citizens.
While the number of users is important, the money volumes digital wallets handle are even more impressive. By rough estimations, the digital wallet market may surpass $10 trillion in transaction value already this year.
APAC
The countries of Asia-Pacific region boast some of the most widespread digital wallet adoption levels globally. In particular, in China, digital wallet payments are deeply integrated into daily life. Both Alipay and WeChatPay have over 1 billion active users and jointly account for over 90% of mobile payment transactions in China. In India, 90.8% of consumers used digital wallets in 2023. Integrated with the national real-time A2A payment system UPI, PhonePe is the largest digital wallet in India in terms of transaction volume. Indonesia boosted its digital wallet usage recently as well, with the introduction of Quick Response Code Indonesian Standard (QRIS), that unifies QR payments across all electronic money apps, e-wallets, and mobile banking services.
Africa & LatAm
In the emerging markets of Africa and Latin America, digital wallets drive financial inclusion in regions where traditional bank services are limited. As an illustration, M-Pesa, which has established itself as a leading mobile money service across Africa, serves over 65 million customers. Its ecosystem includes more than 950,000 merchants and 5 million businesses as well. Other mobile money services are also widespread across emerging African economies. In 2024, over a half of 2.1 billion registered mobile money accounts globally belonged to the citizens of Sub-Saharan Africa. In Latin America, about one-third of both online and offline retail purchases are made via digital wallets.
Europe and North America
In the West, the digital wallet adoption is much lower, but still mainstream. In the United States, Canada and the UK, for instance, digital wallets are used by about half of the population. In Europe and North America, QR-code payments which drive the mobile wallet growth in Asia are not as widespread. Therefore, credit cards and cash still remain top choices for local consumers.
What Drives Digital Wallet Growth
There are several key factors that influence the rapid growth of digital wallets across the globe.
Payment technology
QR codes are not the only facilitators for digital wallet use. Technically, all the contactless POS systems contribute to their growth. NFC technology enables simple tap-to-pay transactions, making digital wallets a convenient replacement for physical ones.
Digital wallets are also increasingly being connected to wearable devices like smartwatches and fitness trackers, as well as other Internet of Things (IoT) gadgets, allowing people to make payments easily while on the move, not just with their smartphones.
Enhanced Security
While physical wallets and cards are easily stolen and possibly used, digital wallets offer another level of security, laden with biometrics (fingerprint, facial recognition) and tokenization. These protection methods help customers gain better control over their money and feel confident about using the novel payment means. The security measures are constantly updating as well. For instance, in 2025, Google Wallet started mandating user verification not only for transactions but also when opening the app after a period of inactivity. The wallet also integrated Zero Knowledge Proof technology, so that users can now verify their specific sensitive details, like age or ID, without revealing a full personal profile.
Use Cases Expansion
Digital wallets today serve a wide range of purposes besides e-commerce. Peer-to-peer (P2P) payment platforms like Venmo, PayPal or remittance-focused wallets enable money transfers between friends and family, while other digital wallet services help users to easily pay for utilities, rent, mobile recharges, subscriptions, mobility, public transport, bike rentals, ride-sharing services, telehealth services, medical bills, and other regular expenses. Governments in many countries are also integrating digital wallets for public payments like taxes, permit fees, and even social benefits.
One of the popular features of digital wallets is storage of virtual cards that are generated for a single use (like a one-time online purchase) or are time-limited. Besides, digital wallets are a key payment method for gaming platforms and mobile apps, as well as social e-commerce, where users can browse, shop, and pay for products directly within the social media app. Some wallets even introduce gamification elements or rewards themselves, like spending milestones or referral bonuses, to encourage frequent use. Moreover, digital wallet solutions can store not only payment cards, but also access passes and loyalty cards, allowing automatic point tracking after each purchase.
The Role of Social Commerce in Digital Wallet Popularity
Social commerce is basically e-commerce occurring via social media networks. Most such platforms (like Instagram, Facebook, and TikTok) have long transformed from purely entertaining resources facilitating communication among peers to commercial marketplaces. Influencers get most of their income from brand integrations rather than views or likes. Therefore, social media platforms are directly integrating digital wallet options (e.g., Apple Pay, Google Pay, Meta Pay) into their checkout processes, so that people find in-app purchases as simple and engaging as product discovery through creators’ content.
Social Approval Makes Digital Wallets Trendy
What makes social media so popular – peer influence, viral trends, and a feeling of social approval – also helps digital wallets grow. When your friends or followers see that you make purchases online via, let’s say, TikTok, they’re likely to try that out too. At that stage, they’ll discover the convenience of the default payment method and an embedded digital wallet solution will get one more potential user. People tend to stick to what’s familiar, so if they have already tested paying with, for instance, Meta Pay, and it all went smoothly, they will trust the wallet for future purchases.
End-to-End One-Tap Shopping Experience
When it comes to paying with digital wallets on social networks, it will most likely go smoothly for all the parties involved. The wallets are easily integrated into the platforms, they enable instant, one-tap payments with saved credentials directly within social media apps, and, most importantly, bring instant gratification of purchasing right away after seeing a product you like in a shoppable feed. Besides, users can stay right in the app and pay without having to re-enter their details, making the whole process smoother and cutting down on abandoned carts.
Step Away From One-Size-Fits-All Approach
Next to the smooth checkout, social commerce offers users exactly what they need and like through personalised product recommendations. They can discover products that align with their values and lifestyles, advertised by people they admire and share interests with. The feed is highly-customised, leveraging the platform’s data-driven algorithms, user engagement history, and recommendations of their media ‘friends’.
Moreover, shopping in media circumstances gets much easier. You don’t have to go to a separate website, and can purchase products featured in videos and live streams you already watch through embedded shoppable links. Live shopping events that are very popular today and interactive polls allow users to engage directly with sellers, ask questions, and even vote on products they want to see in real-time. Users can see real-time pricing and availability in social media storefronts. Besides, many social commerce platforms like Pinterest Shopping and Facebook Shops change storefronts dynamically, adapting their product displays based on what you’ve interacted with.
Digital wallets or social e-commerce platforms they’re embedded within can also offer personalised deals and promotions based on individual purchase histories and locations. This way, frequent shoppers at a certain store or establishment can enjoy special discounts there.
For instance, Google Pay has offers and rewards features available in India and Singapore. There, users can earn cashback, discounts, and other promotional rewards directly within the digital wallet app. Meanwhile, WeChat Pay uses location data to deliver limited-time discounts or coupons exclusive to a specific retail outlet near to the given user.
Promotions may be also based on purchase or browsing behaviour. Thus, users who have regularly bought particular brand products or items from a certain category (e.g. makeup) can get special discounts for that very product type.
Bottom Line
Digital wallets are everywhere these days. In the Asia-Pacific region, countries China and India, see enormous digital wallet adoption. Apps like Alipay and WeChat Pay handle billions of transactions daily. In India, over 90% of consumers use digital wallets as well, largely thanks to UPI integration. Meanwhile, in Africa, digital wallets like M-Pesa are driving financial inclusion for millions who previously had limited access to traditional banking.
However, their rapid growth isn’t just about convenience, inclusion and security. Social commerce is playing a massive role in turning them into must-haves. Platforms like Instagram, Facebook, and TikTok are blurring the lines between browsing and buying. You can spot a product in a live stream or an influencer’s story, tap it, and purchase it — all without leaving the app. This smooth, one-tap experience is powered by digital wallets, which handle payments instantly and securely. No extra logins, no card details, just a quick confirmation, and your shopping urge is satisfied right away.
But it’s not just about convenience — personalization is key to social commerce-driven digital wallet payments. Social media platforms analyze your likes, shopping habits, and location to suggest products and exclusive deals. For example, Google Pay users in India and Singapore get cashback and local discounts, while WeChat Pay offers location-based promotions. This way, digital wallets become more than just a payment method in social commerce settings. They’re the backbone of a seamless, interactive shopping experience users increasingly seek in social media.
