Mobile Matters: The Consumer Shift to More Digital Experiences

When credit cards first became widely used decades ago, that transition away from cash, checks, and other physical payments seemed to be the epitome of convenient payments. And they were — for a time. That is until mobile wallets stepped into the picture. And, while mobile payments have not dethroned credit and debit cards as the most popular payment method, they are quickly gaining traction.

Today, 35% of online and 21% of in-store purchases are completed with a mobile wallet — according to How the World Does Digital, a report from PYMNTS Intelligence. PYMNTS conducted research across 11 countries and over 200,000 consumers about mobile wallet behaviors between 2022-2024. It has revealed key insights into how financial institutions can innovate to meet consumers where they are: through mobile-first strategies.

Mobile Payment Users

Mobile payment adoption isn’t tied to any single generation. Younger generations like Gen Z have the highest adoption rates across the 2-year period (23%), but the growth is cross-generational. Every generation uses mobile payments more frequently than before.

In addition, low-income (22%) and middle-income (12.3%) earners reported having increased mobile wallet payments in the 2-year period. This increase in mobile payment usage beat out growth across all other payment methods — credit card, debit card, other card type, bank transfer or variants, installments/Buy Now, Pay Later (BNPL), and cash.

Using Mobile to Gain Top of Wallet Status

Recent MX research found that 44% of consumers agree they have a “top of wallet” account that they use for the majority of their purchases and payments. Coupled with the rise in digital wallet payments, financial institutions should ensure that their efforts to gain “top of wallet” status include a strong mobile strategy. 

Today, consumers are in pursuit of better, more convenient experiences — which includes mobile. Mobile wallets. Mobile features. Mobile apps. The level that financial providers invest in creating a superior mobile experience can make or break customer engagement. In fact, 65% of consumers said they would stop using an app if the mobile experience changed for the worse, according to MX research.

High rates of mobile wallet adoption today can point to a likelihood of even more digital wallets in the future. And, financial providers must adapt. An investment in mobile and digital experiences in today’s financial market can lead to winning primacy and increasing consumer engagement.