Mobile Payments Statistics: Analyzing the Latest Insights

Mobile payments altered how we pay for various items and services. With the increase in smartphone usage, consumers now lean towards mobile payment methods instead of standard cash and card payments.

Now, about 3.37 billion users utilize mobile payments for their online purchases, physical stores in different areas, money transfers from one bank to another, and payments for bills or leisure.

To learn more about the widespread use of mobile payments and the convenience it offers, here are the latest mobile payment statistics.

How Popular Are Mobile Payments?

29% of online merchants accepted mobile wallets in 2018, an increase from 24% in 2015. The popularity of digital payments varies by region and country; however, it is a growing trend globally.

More individuals are also expected to turn to mobile payments as the technology becomes widely available and accepted.

Several reasons drive the popularity of mobile payments, which include:

• Convenience and speed of completing payments
• Implementation of security measures
• Availability of mobile payment methods

The following section will allow people to understand the influence of mobile payments, their statistics, and information to consider if a business wants to switch its payment options to mobile payment systems.

Mobile Payment Industry Statistics

In today’s world, people no longer bring their wallets or purses. They use their smartphones to pay for the items they purchase or services they avail.

The mobile wallet market has grown steadily in the past few years, with the global size expected to achieve 36.2% by 2023 to 2030 as businesses across the globe are making their payment method mobile-compatible.

With the rise of contactless payments and online shopping, the mobile payment industry channels trillions of dollars annually.

Let’s explore the world of mobile payment statistics!

1. There will be 6.8 billion smartphone users worldwide in 2023.

(Statista)

There are 6.8 billion individuals who use smartphones as of this year, and it concentrates on the global adaptation of technologies. Consumers depend on it for contact, pastime, learning, and business, so it has become an indispensable part of daily life.

Due to the rising supply of low-cost smartphones and internet connections, more people have access to their digital world. It shows new possibilities for businesses and consumers to interact, collaborate, and innovate, which helps shape the future of the digital aspect.

2. The global digital payment sector was worth $1.97 trillion in 2021.

(GlobeNewswire)

This innovative sector was valued at around $1.97 trillion in 2020. However, it’s forecasted to earn between $4.86 to $12.47 trillion by 2026. Its unprecedented acceleration occurred when the payment method shifted to contactless payment during the global pandemic.

As technology keeps on evolving, so do consumer preferences. It is presumed that the sector will continuously grow and adjust to meet the ever-changing needs and demands of the fast-paced digital world.

3. The top 10 mobile payment apps have a combined number of 3.37 billion users.

(Merchant Machine)

As per the report, the top 10 payment apps in 2021 have a user base of 3.37 billion combined. The most popular payment app is WeChat Pay, with over 1.2 billion users. They were followed by:

• Alipay has 1.3 billion users around the world
• PayPal currently has 435 million users as of 2022
• Cash App has 30 million active users, while 7 million used a Cash Card
• Venmo users counted at 15.3 million in September 2022

Mobile apps' convenience and ease are the reason for the trend regarding digital smartphone payments.

Statistics on Mobile Payment Usage

Current statistics reveal that almost 30% of all transactions use a mobile device to make an online payment, which is expected to grow — and we know that digits don’t lie. 

Experts forecast that by 2024, mobile payments will account for over half of all e-commerce transactions worldwide, making it a more accessible and efficient payment option. 

These are the latest statistics for mobile payment usage.

4. Payment users in the US will surpass 100 million this year.

(eMarketer)

In 2021, the number of US consumers using mobile payment was estimated to exceed 100 million. This figure defined the development of 29% of the 77.9 million users documented in 2019. The increase is due to several factors:

• Increasing popularity of smartphones
• Convenience of mobile payments
• The COVID-19 pandemic

In 2021, it was also forecasted that 38.5 million users aged 55 and above would utilize mobile payments, defining a 23.6% increase from 2019. The numbers are anticipated to grow due to client demands and the increasing chances of availability of other mobile payment methods.

Cash isn’t the only thing moving over to mobiles. E-commerce on mobile phones, called m-commerce, is expected to reach $3.5 trillion in 2023.

5. Mobile transactions in China totaled $63.23 trillion last 2020.

(Statista)

These digits illustrate an impressive 18.7% gain in China’s economy from the prior year, which showed the continued dominance of mobile payments. Mobile transactions have become a favored mode, leading consumers to use it in many parts of the country.

Another factor in the growth is the country’s enormous and operational e-commerce sector. An increasing number of people are shopping online, making their mobile banking app an easy way to complete their purchases.

6. The UK accounted for 32% of all transactions in 2021.

(UK Finance)

Mobile payment has been on the rise in recent years, and it accounted for 32% of all transactions last 2021 in the UK, up from just 7% in 2015 to 22% in 2020.

UK consumers aged 18-34 use Apple Pay, Google Pay, and Samsung Pay to complete transactions with a tap or scan when shopping or banking and even for other activities.

Demographics of Mobile Payment Users

Mobile payment users tended to be younger, most in the 18-34 age range. However, it varies depending on the country or region a user is in. These individuals are more likely to live in metropolitan areas and have higher educational attainment and income levels.

In some nations, there’s a gendered aspect to mobile payment usage. Men are more likely to use technology than women, considering factors such as cultural perspectives toward cash payment and the availability of alternative payment methods.

These are insights and statistics about mobile payment’s demographics section.

7. 72% of mobile payment users are Millennials or Generation Xers.

(Pew Charitable Trust)

72% of mobile payment users in the US are Millennials or Generation Xers. It was a collated response from over a thousand consumers who have used mobile payments in the past year. Almost half were Millennials, 47%, and 25% were from the Generation X age group.

The outcome highlights the trend of younger generations embracing mobile payment technology more quickly than older users.

8. Nearly 7 in 10 adults in the US own a smartphone.

(Pew Charitable Trust)

85% of US consumers own a smartphone, a substantial increase from 35% in 2011, with 97% of smartphone owners using their devices for this purpose. The device is also the most popular technology for internet connection access.

The same survey discovered that mobile phone privilege is highest among younger adults, with 98% of ages 18 to 29. Also, 85% of phone owners cited that they use it to keep up with the news, current events, or trends, while 84% use it to reach communications with family and friends.

Mobile Payment Trends Statistics

Mobile payment developments and trends occur due to several factors, such as the expanded adoption of smartphones, the amenity of mobile payments, and the expansion of payment platforms. The number of people using mobile payment is predicted to surpass $1.3 billion by 2023.

These statistics illustrate the quick evolution of mobile payment usage and emphasize the essence of mobile payment resolutions in the global economy. Let’s see how current numbers illustrate the mobile payment trend as it accelerates in the coming years.

9. Apple Pay became the most widespread mobile payment service in the US.

(Business of Apps, Moneytransfers.com)

With over a billion users in the Apple ecosystem worldwide, Apple Pay became a hit primarily because it allows easy, secure, and private transactions nearly anywhere in the US.

Apple Pay, a mobile payment service proposed by Apple Inc. using their iOS devices, is the most popular payment service in the US, with a market share of 43.9% in 2020.

70% of US retailers also accept Apple Pay as of 2021. In 2023, this rose to 85%.  This result shows the versatility of being able to use it at a variety of establishments. Furthermore, Apple Pay uses tokenization to ensure sensitive card details are not transmitted to the retailers, which makes it less vulnerable to data infringements.

With the rise of e-commerce, Apple Pay has also innovated its payment scheme to cater to the spending habits of its clientele. In March 2023, they introduced Apple Pay Later.

10. China channeled $5.15 trillion through QR code payments in 2020.

(Statista)

QR code payments increased dramatically in recent years, mainly during the COVID-19 pandemic. QR code payments in China amounted to 356.62 trillion yuan, around $55.12 trillion in 2020.

An 18.7% increase from the previous year was discovered — third-party platforms accounted for 81.2% of the total transaction value for QR code payments.

The Chinese government has accepted it to elevate monetary inclusion and lessen the usage of cash payments. They also enforced a policy to promote electronic payments and supported third-party platforms using QR code payments.

China accounts for 87% of all mobile payment transactions worldwide. One of their leading mobile apps, WeChat, allows users to buy goods or pay for almost any service using WeChat Pay. They can use it to pay toilet fees and even donate to street performers!

Conclusion

Mobile payments have gained popularity over the years as consumers seek more practical and protected payment methods. The evolution of the output has earned broader approval among people due to the ease of use and the added security it supplies.

Mobile payments are here to stay. Businesses will constantly use this as their payment choice to evade the danger of falling behind in today’s age.