Digital Wallets: Tomorrow's Transaction Norm

Published Date : 11/11/2025 

Digital wallets have become an integral part of daily life, with a projected 6 billion users by 2030. Discover how these innovative payment methods are reshaping the financial landscape and driving financial inclusivity. 

After the rise of Commodores, IBMs, and Macs; Segas and Nintendos; mp3s and streaming services; smartphones and tablets and apps; biometrics and more, it has become easier to identify when a technology is poised to become an everyday essential. Digital wallets have reached that point. Mobile driver’s licenses (mDL) are still emerging, but physical event tickets and plastic credit cards are on their way out, driven by the pandemic's push for touchless payments.

A new report from Juniper Research, titled 'Digital Wallets: Empowering Financial Inclusivity,' reveals that the number of transactions completed via digital wallets has grown by 110 percent between 2020 and 2025. The report projects that the number of digital wallet users worldwide will increase by 35 percent over the next five years, reaching 6 billion global users by 2030.

Juniper Research highlights that the digital wallets leading the race are those that offer value-added features such as Buy Now, Pay Later (BNPL), virtual cards, and digital identity. Integrated flexibility in wallet types, including stored value, staged, and cryptocurrency, along with diverse payment methods like cards and account-to-account payments, are key differentiators. Loyalty and reward schemes are also significant factors in adoption.

Thomas Wilson, an analyst at Juniper Research, notes, 'Changing user behavior, such as card usage, especially when it is long-established, means providing incentives. As the digital wallets space becomes increasingly saturated, differentiation using rewards and other capabilities, such as gamification or superapp features, will be vital to success.'

The path to widespread market penetration has not been without challenges. Fragmented regulations and increasing cyberattacks are significant hurdles. For digital wallet and infrastructure providers, navigating the regulatory requirements of each region and adjusting strategies accordingly can be complex. It is no surprise that older generations are more inclined to trust traditional banking methods, while Gen Z increasingly prefers digital ones, with over 80 percent of this demographic adopting mobile wallets.

Regionally, markets like the UK, Sweden, and the Netherlands already have well-established wallet ecosystems. 'Countries with robust technological ecosystems and innovative payment regulations, such as China and the UK, see higher uptake of digital wallets,' the report states. More remote areas or those with older demographics tend to exhibit slower adoption. The U.S. market is slower to trust digital wallets, but state mDL initiatives will drive adoption. Regional disparities, according to Juniper, 'are shaped by a blend of infrastructure, policy, generational preference, and cultural readiness for change.'

One intriguing section of the report highlights the success of QR codes. 'QR codes have become a pivotal component of digital wallets in 2025, offering a versatile, contactless, and low-cost payment solution, particularly favored in regions such as Asia Pacific and increasingly gaining traction in Europe and the UK,' the report notes. The journey of the QR code from its invention in 1994 for labeling auto parts to its widespread use in menus, billboards, and wallets is a fascinating study in adoption. Juniper Research believes that QR codes will continue to evolve through integration with augmented reality (AR), blockchain-based transparency solutions, and voice-activated payment capabilities.

Juniper's market forecasting is perhaps the most remarkable part of the report. The firm projects that the number of digital wallet users will increase from 4.5 billion in 2025 to 6 billion in 2030, representing more than three-quarters of the global population. 'While rewards will help wallets in established markets compete, digital wallet platforms should also prioritize deploying solutions that target the underbanked in emerging markets,' the report advises. 'As mobile money services aim to offer banking-like services, digital wallet platforms must evolve to provide more advanced capabilities, or they will lose market share to more mainstream banking platforms.' 

Frequently Asked Questions (FAQS): 

Q: What is a digital wallet?

A: A digital wallet is a software application that stores payment information and passwords for numerous payment methods and websites. It allows users to complete purchases easily and quickly with mobile devices.

Q: How have digital wallets grown in popularity?

A: Digital wallets have grown in popularity due to their convenience, security, and the increasing demand for touchless payments, especially during the pandemic. Juniper Research projects a 110% increase in transactions and a 35% increase in users over the next five years.

Q: What are some key features of leading digital wallets?

A: Leading digital wallets offer value-added features such as Buy Now, Pay Later (BNPL), virtual cards, digital identity, and loyalty and reward schemes. They also provide flexibility in wallet types and payment methods.

Q: What challenges do digital wallets face?

A: Digital wallets face challenges such as fragmented regulations, increasing cyberattacks, and slower adoption in regions with older demographics or less robust technological infrastructure.

Q: How are QR codes used in digital wallets?

A: QR codes have become a pivotal component of digital wallets, offering a versatile, contactless, and low-cost payment solution. They are particularly favored in regions like Asia Pacific and are gaining traction in Europe and the UK. 

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