Digital wallets account for 50% of global e-commerce revenue
Digital wallet is a term used to describe mobile apps or online programmes that store a user’s banking information digitally so that payments can be made quickly and efficiently
17 August 2023
Analysis from digital identity security specialists, ID Crypt Global, reveals that 50% of global e-commerce payments are now made via digital wallets.
With digital wallets already identified as ‘the leading payment method globally’, ID Crypt has analysed e-commerce revenue across 40 countries in 2022 to reveal how much is now coming from digital wallets.
Digital wallet is a term used to describe mobile apps or online programmes that store a user’s banking information digitally so that payments can be made quickly and efficiently. Popular examples include Apple Pay, Google Pay, PayPal. They are most-frequently used for online payments, but also let us use our phones for contactless payment in shops.
In 2022, the global e-commerce market generated revenue of £4.9 trillion. Digital wallets accounted for 49% of this, which is £2.4 trillion.
The Asia-Pacific (APAC) region is the global digital wallet leader, with 69% of e-commerce payments, equivalent to £1.7 trillion, making use of the technology.
In North America, 32% of payments came through digital wallets, followed by Europe (29%), Latin America (21%), and the Middle East and Africa (20%).
On a national level, the APAC region dominates.
China has the largest e-commerce market in the world, generating revenue of £1.85 trillion in 2022. It’s also the global leader for digital wallet usage which accounts for 81% of this total revenue, equivalent to £1.5 trillion.
In India, 50% of e-commerce revenue came from a digital wallet, and in Indonesia, the figure is 39%.
The UK has the highest proportion of digital wallet revenue outside of the APAC region. The nation’s e-commerce market generated £259 billion in 2022, and £90.6 billion of this, or 35%, came via a digital wallet.
The UK is followed by Italy (35%), the Philippines (33%), and USA (32%).
Meanwhile, the lowest use of digital wallets is recorded in Turkey (9%), the Netherlands (9%), and Nigeria (10%).
CEO and Founder of ID Crypt Global, Lauren Wilson-Smith, said: “The significance of digital wallets is huge. They’re playing a central role in all of our lives, whether we’re paying for goods online or getting on tubes, trains, and buses. And we’re still only at the very beginning of the journey.”