Digital wallets are revolutionizing the way we pay for goods and services. After a steep spike in use throughout Covid-19, mobile payments, or ‘m-payments’ are now officially the most common payment method in the US, overtaking cash, bank transfers, and even physical credit and debit cards. Here are some of the latest and most compelling mobile payment statistics to prove the point.
The popularity of m-pay is a no-brainer. By storing payment information and allowing consumers to leave their wallets at home, mobile payments are far more convenient than traditional methods. With most mobile POS systems coming with in-built card readers, cashing in on digital payments couldn’t be easier for businesses, either.
From m-payment usage figures to security data, we’ve rounded up the top mobile payment statistics to help businesses understand their impact on the payment landscape. We also look at the future of mobile payments, and why it’s becoming increasingly necessary for businesses to embrace the technology.
Key Mobile Payment Statistics
- Mobile payment market size is expected to grow at a CAGR of 36.2% between 2023 to 2030 (Grand View Research)
- More than half (53%) of Americans claim they use digital wallets more often than traditional payment methods like cash or physical cards. (Forbes Advisor)
- Chinese-based AliPay is the largest mobile payments platform in the world, serving 1.3 billion global users in 2022 and making up 40% of total m-payments globally. (Merchant Machine)
- In 2023, 66% of restaurants in the US and Canada accept mobile payments, compared to 63% that accept credit cards and 38% that accept debit cards. (TouchBistro)
Mobile Payments Explained
Mobile payments are a type of digital transaction that take place through smartphones, or other mobile devices.
Commonly abbreviated to ‘m-payments’, mobile payments are typically completed using digital wallets like Google Pay and Apple Pay. These wallets store payment information electronically, allowing users to pay for goods and services in a tap, without using physical cards.
Mobile payments are widely regarded as faster, more convenient, and more secure than alternative payment types, justifying the method’s wild success in recent years. The barrier to entry for accepting mobile payments is low too – all businesses need is a standard POS set-up or a simple contactless payment reader.
Mobile Payment App Usage Statistics
Here are some statistics around mobile payment usage trends, both in the US and globally.
1. Mobile payments will only rise in coming years
Mobile payments are predicted to make up 79% of all digital transactions by 2025, compared to 71% of digital transactions in 2021. (Juniper Research)
2. Big numbers worldwide
In 2024, over 2.7 billion people used mobile payments around the world, with the total transaction volume reaching $8.1 trillion. (Business of Apps)
3. Dominant in peer-to-peer payments
70% of consumers in the US use mobile/digital wallets for their last peer-to-peer transaction, making it the preferred method. (PYMNTS)
4. Payment method of choice in the US
More than half (53%) of Americans claim they use digital wallets more often than traditional payment methods like cash or physical cards. (Forbes Advisor)
5. More popular among younger users
Mobile payments are more popular with younger consumers, with 62% of Gen Zers and 53% of millennials using mobile wallets, compared to 21% of baby boomers. (Morning Consult)
6. M-payments are more popular among males
Women are 15% less likely than men to use mobile internet in 2024 globally. As a result, mobile payments are slightly more popular among males than females, especially in countries with larger smartphone gender gaps. (FinDev Gateway)
7. Digital wallet use increasing
The use of digital wallets has risen for in-store purchases, from 19% in 2019 to 28% in 2024. (McKinsey)
8. Mobile payments overtake cash withdrawals
New research has found that in 2024 mobile payments have overtaken cash withdrawals for the first time ever in Australia. (Australian Baking Association)
Mobile Payment Market Statistics
The digital payment market is booming, and the m-payment sector is no exception. Here are some figures detailing its wild growth.
9. M-payment market is growing by 36.2%
The mobile payment market is currently worth $67.5 billion in 2023, and is projected to reach $587.52 billion by 2030 at a CAGR rate of 36.2%. (Grand View Research)
10. US transaction value will exceed $1 trillion in 2027
Mobile payments will account for over $1 trillion in US point of sale (POS) transactions in 2027, according to projections. (E Marketer)
11. Apple Pay dominates US market
Outside of China, Apple Pay has the largest transaction volume of any mobile payment service, with 55.8 million consumers expected to use the platform in 2023. (Oberlo)
12. AliPay is global top-dog
Chinese-based AliPay is the largest mobile payments platform in the world, serving 1.3 billion global users in 2022 and making up 40% of total m-payments globally. (Merchant Machine)
13. Transaction size slows in China
Despite China boasting the largest mobile payment market globally by far, the total transaction value of mobile payments decreased to 500 trillion yuan in 2022. (Statista)
Digital Payments Security Statistics
Despite the popularity of digital payments, many doubts remain about their security. Here are some digital payments security statistics to be aware of.
14. Digital payment users have doubts
Security is a high concern among digital payment users, with 69% fearing that it may not be as secure as other payment methods. (Visual Objects)
15. Mistrust among consumers
US consumers were more likely to believe mobile payments were “poorly protected” (38%) compared to credit (9%) and or debit cards (22%). (CardConnect)
16. Security is a barrier to adoption
Around 35% of consumers who don’t use mobile wallets say security is the main reason. (PYMNTS)
17. Being breached is a top concern
Among digital payment users who doubt the method’s security, being breached by cyber criminals is their primary concern (41%), followed by fraud at 16% and theft at 12%.
Mobile Payments Methods for Hospitality Businesses
More restaurants, bars, and cafes are offering mobile payment options than ever before, but not necessarily at an even rate. Here are some stats about m-payments in the hospitality industry.
18. M-payments popular among restaurants
In 2023, 66% of restaurants in the US and Canada accept mobile payments, compared to 63% that accept credit cards and 38% that accept debit cards. (TouchBistro)
19. Card and contactless are king in hospitality
9 in 10 (89%) of consumers use cards of contactless payment methods over cash when they visit a bar or restaurant. (Zonal, CGA)
20. Mobile payment use lags behind physical cards
Almost a quarter (24%) of consumers claim to frequently use mobile wallets like Apple and Google Pay in hospitality businesses, compared to 13% that regularly use smartwatches. (Zonal, CGA)
21. Guest expectations are digital
74% of travelers view digital wallets as essential. (PYMNTS)
Accepting Mobile Payments is a Must in the Digital Age
There’s no denying it, mobile payments open up lucrative opportunities for hospitality and retail businesses by making the payment experience far more convenient for the consumer.
With most US businesses already embracing m-payments, and a growing percentage of consumers leaving their physical wallets at the door, failing to make payments more accessible will only limit sales performance, and hinder the bottom lines of businesses in the digital age.
Aside from unlocking core revenue streams, accepting digital payments through mobiles and other devices also makes transactions more tracible and trackable. This can save precious time for businesses by streamlining cashflow processes, and reducing the headaches that come with managing payments manually.
Fortunately, making the change couldn’t be easier. Most retail and restaurant POS systems will come with a chip and pin or contactless card readers that facilitate mobile payments. These will accept all major digital wallets – from Apple to Samsung Pay – as well as payments from physical bank cards.
Hospitality businesses can also create custom QR codes that customers can scan, allowing them to make mobile payments without the support of servers.
The Future of Mobile Payments
The stats speak for themselves. With mobile payments expected to make up 79% of all digital transactions by 2025, and 66% of hospitality businesses already accepting the technology, m-payments are set to be an indisputable part of the payment landscape going forward.
However, it’s also true that security concerns around the payment type remain. So to overcome cybersecurity pitfalls, we’d recommend using a POS system with a credible security profile, ensuring your operating system is always up to date, and only linking your system up to a trusted Wi-Fi source.
However, many experts believe mobile payments are still more vulnerable to security risks like fraud and phishing attempts than traditional methods.