Digital wallets have enjoyed growing popularity as a payment method in recent years. With restrictions imposed by the COVID-19 pandemic, as well as a broader goal of financial inclusion by eliminating cash from daily financial transactions adopted by many governments worldwide, digital wallets have found themselves to be at the forefront of a new payments ecosystem.

A new study from Juniper Research has found that the total number of digital wallet users will exceed 5.2 billion globally in 2026, up from 3.4 billion in 2022; representing strong growth of over 53%. The research predicts that the presence of ‘superapps’ will drive digital wallet use in developing countries that are currently considered cash heavy.

Superapps are multipurpose apps able to integrate digital payments alongside other services, including wealth management and eCommerce.

Google was the first company that launched its mobile wallet solution in 2011, while Apple launched its Passbook in 2012, which did not involve payment capabilities, but was rather only as a document storage for boarding passes, tickets, and coupons. Its solution with payment capabilities, Apple Pay, was subsequently launched in the US in October 2014. It was then launched in the UK and China. Apple Pay utilises NFC (Near-field Communication) technology and customers could not only pay, but also earn loyalty points and redeem coupons. It later introduced P2P services through Apple Cash as a functionality within Apple Pay.

In 2015, Android launched Samsung Pay, developed following the acquisition of LoopPay by the company. Launched in the UK in May 2017, Samsung Pay is an app that enables users to turn their Samsung Galaxy smartphones or watches to digital wallets. It also supports digital card solutions for non-compatible banks and building societies through Samsung Pay+ app, which allows users to merge every card from any bank into one digital card.

However, this is only part of the digital wallets story as the solutions in the developed markets followed the footsteps of previous developments in emerging markets. Japan’s Rakuten Pay emerged as a product of the country’s largest eCommerce platform, Rakuten Ichiba. It was introduced in 2012 as a solution for SMEs (Small-to-Medium-sized Enterprises), which did not have POS systems to accept in-store payments; evolving into a fully fledged digital wallet solution in 2016.

Similarly, in China, Alipay emerged as a spin-off of the Alibaba eCommerce platform Taobao, which was launched as early as 2004. WeChat Pay, on the other hand, is incorporated within the WeChat superapp, launched by Tencent in 2013. Both solutions have been extremely innovative in the Chinese market and pioneering for other digital wallets across the globe.

Key Players: PayPal, Rakuten Pay, Alipay, Amazon Pay

Domestic P2P Payments Path: Digital wallets that originated from the domestic P2P payments path tend to be found mostly in developing economies, with such wallets partnering with MNOs and FIs. Usually viewed as a tool to boost financial inclusion, these wallets were initially developed from the idea of simplifying mobile money transfers between users who otherwise have no to very limited access to banking services. The World Bank’s Global Financial Index study found that, although 1.7 billion adults remain unbanked, two-thirds of these adults own a mobile phone that could help them access financial services. P2P wallets, therefore, have stepped up from providing solely P2P payments to more sophisticated financial services over time, partly thanks to the proliferation of smartphones. These services include international remittances, and merchant/bill payments, as well as microloans and microinsurance services encompassing mobile money transfer.

Key Players: M-PESA, MTN Mobile Pay, Airtel digital wallets

POS Payments Path: These wallets were developed out of the need to facilitate in-store payments and, as such, they gravitate towards employing specific DIGITAL WALLETS ~ ACCELERATING TO A CASHLESS SOCIETY 3
FINTECH & PAYMENTS technologies such as NFC, QR codes, Bluetooth, and MST (Magnetic Secure Transmission) employed by Samsung, which is an advanced technology generating a magnetic signal, similar to that of a magnetic stripe encompassed in traditional payment cards, that powers the app. The technology then transmits the signal
from the mobile device to POS readers. Contactless payments are the norm for POS digital wallets, increasingly utilised in various transactions, such as transport payments (ie, for Transport for London payments).

Key Players: Apple Pay, Samsung Pay, Google Pay digital wallets

Social Payments Path: Numerous digital wallets have emerged from social messaging and media platforms, initially based upon the premise of domestic P2P payments. Prolific in China and the Asia Pacific countries, these wallets shape users’ lifestyles in the form of superapps combining eCommerce, communications, and transport payments. In other countries, this development path for digital wallets is less apparent. WhatsApp Pay, owned by Meta, is an example of these wallets in developed markets. PayPal’s Venmo, acquired from Braintree in 2013, is a key social payments digital wallet in the US market, supporting P2P payments.

Key Players: WeChat Pay, Venmo, LINE Pay, WhatsApp Pay

Outlook for Wallet Development: Despite differences in their development pathways for market entry and characteristics of the markets they are operating in, digital wallets are progressively adopting similar capabilities to achieve universal acceptance. These characteristics include support for eCommerce, P2P, and in-store payments. Moreover, different wallets are embracing a superapp approach in terms of business models, with merchants having to choose between many options and supporting wallet-friendly technologies. Another question which will affect the
adoption trajectory is the stance to be taken by the payments companies that can pave the way for greater use of digital wallets. The same holds true for FIs and regulatory agents to encourage their use to move towards cashless and more financially inclusive societies, ie, by strengthening identity authentication measures and customer data protection rules.

Asia Pacific Countries to Experience Rapid Growth digital wallets

The study identified three countries in Asia Pacific primed for rapid growth over the next four years:

1.    Philippines
2.    Thailand
3.    Vietnam

It predicts that the adoption of digital wallets will near 75% of the population in each of these countries by 2digital wallet026. It cited the rising access to online and mobile commerce services as driving forces behind the use of digital wallets, notably through superapps.

Research co-author Damla Sat explained: “These rapidly growing markets represent a significant opportunity for digital wallet vendors, but they must work intelligently to maximise their position. A highly competitive wallets’ landscape means that vendors must differentiate themselves by integrating machine learning to provide spending insights and introduce new services such as wealth management to add value.”

Innovation Needed for Future QR Payments Growth

Additionally, the research identified QR code payments as the most popular digital wallet transaction type in 2026; reaching 380 billion transactions globally, and accounting for over 40% of all transactions by volume. However, as usage within markets including China and India reaches its apex, vendors must innovate to remain competitive entering new geographic markets. Therefore, the research recommends that QR code payment vendors integrate loyalty features and personalised marketing capabilities to incentivise merchant acceptance, which will be critical to driving adoption.

Increasing merchant acceptance of digital wallets methods at eCommerce checkouts has been a driving force behind enabling further digital wallet use. APIs (Application Programming Interfaces) that connect financial institutions to local retailers would be key to the international growth of digital wallets usage for large, cross-border eCommerce merchants.