Digital Wallets and Crypto: Driving the Next Generation of Global Payments

In the rapidly evolving world of financial technology, digital payment methods and the adoption of digital wallets are a revolutionary force, transforming how financial transactions are conducted. By offering unparalleled convenience, speed of execution and innovative features, they are improving consumer experience and driving significant changes in the e-commerce landscape. The inclusion of cryptocurrency as a payment method is further reshaping consumer behavior, redefining financial transactions, and setting new standards for global commerce.

The Surge of Digital Wallets in Global Payments

Digital wallets, or e-wallets - applications that store payment information on smartphones or other digital devices - enable users to make transactions without cash or physical cards. E-wallets have evolved to offer more than just payments or P2P transfers; they provide a variety of functionalities, including loyalty programs, ticketing services, and even investment management. Their quick adoption can be attributed to 3 key factors:

1. Convenience: Digital wallets enable users to store multiple cards and complete transactions on their mobile devices, erasing the hassle of going through their purses or pockets looking for cards or cash. The seamless and streamlined payment experience minimizes wait times and reduces physical contact in in-store, accelerating the checkout process and enhancing consumer experience.
2. Security: E-wallets combine advanced security methods to offer a secure and easy way to manage funds. Unlike traditional wallets, which pose an inherent risk of getting stolen or lost, digital wallets leverage advanced encryption technologies, such as tokenization, biometric authentication, and encryption, which are integral to digital wallets.
3. Integration: Digital wallets are increasingly integrated with advanced financial technologies, creating a more cohesive and agile financial ecosystem. For example, some e-wallets incorporate blockchain technology to provide a decentralized and secure transaction capability. Moreover, blockchain’s smart contracts functionality and immutable ledger increase transparency and security.

In 2024, global digital wallets represented approximately USD 10 trillion in transaction volume, 53% of e-commerce payments globally (Figure 2), and it is expected to exceed 65% by 2030. This is reflected in the gradual decrease in use of cash and cards, which together constituted 66% in 2014 and by 2024 decreased to 34%.

In the United States, 64% of consumers used digital wallets more frequently than traditional payment methods in 2023, according to CapitalOne Shopping Research (2025). Moreover, 53% of American digital wallet users preferred Apple Pay. Apple Wallet is automatically installed on every iPhone enabling users to pay with any of the cards in their Apple Wallet, either online or by holding their phone near a near-field communication (NFC) terminal. To ensure users’ privacy, Apple Pay uses tokenization, so that the system passes only the users’ token, rather than the user’s financial data.

In 2021, consumers made USD 91.7 billion in Apple Pay purchases, up 96% from USD 46.9 billion in 2019. In 2024, 6 out of 10 Americans used Apple Pay in stores and nearly 4 out of 10 used it online (Figure 3).

Another global leader in the e-wallet space is Alipay, launched 20 years ago by Alibaba Group, is China's largest mobile and online payment platform. It allows users to make secure payments, transfer funds, and manage their finances via a mobile app. Originally designed to support Alibaba's eCommerce platforms, Alipay quickly expanded to include a wide range of services, such as utility bill payments, in-store purchases, and money transfers. Over the years, Alipay has grown to support international transactions and various currencies, making it a global payment solution widely used by Chinese nationals and international travelers alike.

As of 2025, Alipay's global monthly active users reached 1.4 billion worldwide, and the platform processed around USD 20.1 trillion in total volume. Its success is rooted in its ability to offer a complete digital ecosystem, including financial services, mini-programs for businesses, and a QR code-based payment system that has become the standard in China. The platform's escrow service further boosts user trust by holding funds until a transaction is confirmed, a feature that has been pivotal in its rise as a leading digital payment solution.

While digital wallets have transformed the consumer payments market, their adoption for B2B payments is set for greater expansion, only 35% of U.S. financial institutions and 44% of U.K. financial institutions currently support wallet-based B2B payments, indicating vast untapped opportunities for growth. Traditionally, B2B payments have relied on outdated systems like paper checks, ACH payments, and wire transfers, which incur fees and time inefficiencies. E-wallets have been shown to improve payments in terms of speed, efficiency, and cost reduction.

The most compelling reason for B2B organizations to adopt digital wallets is the need to meet the evolving preferences of their clients. Billtrust (2025) reveals that 42% of Gen Z professionals prefer to use digital wallets in B2B transactions, indicating a generational preference pressuring companies to adapt their payment infrastructure.

Cryptocurrency in E-Commerce: Shaping the Next Wave of Payment

While digital wallets optimize existing payment infrastructure, cryptocurrency introduces a new challenge to the e-commerce ecosystem. More and more users are requesting retail platforms that support payments in digital currencies like Bitcoin, Ethereum, and others. This wave of change brings a host of implications for online merchants, consumers, and the very infrastructure of online trade.

Built on blockchain technology, cryptocurrencies offer distinct advantages that are slowly, but steadily, gaining traction in the e-commerce world:

• Global Reach and Accessibility: Cryptocurrency transactions are effectively borderless and not confined by geographical boundaries, allowing businesses to access a worldwide customer base. For cross-border payments, cryptocurrencies prevent the hassle of currency exchange and associated fees.
• Lower Transaction Fees: Crypto payments often have lower transaction fees than typical online payment processing systems like credit cards and apps. Traditional payment processors typically charge 1.5% to 3% or more per transaction. Crypto fees, particularly for direct crypto-to-crypto payments, can be substantially lower, sometimes even below 1%. This cost-saving potential can be significant for businesses, especially those with high transaction volumes.
• Enhanced Security and Fraud Prevention: The decentralized nature of blockchain technology offers a high degree of security and fraud prevention. Each transaction is recorded on a public, distributed ledger, making it extremely difficult to alter or tamper with. This inherent transparency reduces the risk of chargebacks and provides a more secure environment for both buyers and sellers. While traditional fraud still exists in the broader crypto ecosystem, the transactional security of the blockchain itself is a significant advantage.

Despite these advantages, the adoption of cryptocurrencies in e-commerce faces some challenges. Price volatility remains a huge concern, since the value of digital currencies can fluctuate widely over short periods. Merchants and consumers alike must navigate the uncertainties that come with such price changes. To address this, stablecoins are emerging as a vital solution. Stablecoins are cryptocurrencies designed to minimize price volatility by being pegged to a stable asset, most commonly a fiat currency like the U.S. dollar, Euro, or offshore Chinese Yuan. Popular fiat-backed stablecoins include Tether (USDT), USD Coin (USDC) and Euro Coin (EURC). By maintaining a steady value, stablecoins combine the core benefits of crypto, such as global reach and low fees with the stability of traditional money, making them a more practical tool for everyday e-commerce and international transactions.

Large payment processors like PayPal and Block, Inc. (Cash App) are increasingly incorporating crypto payment options in their offerings. Merchants like Shopify offer the ability to accept crypto payments, integrating digital wallets with cryptocurrency payments to facilitate transactions on its e-commerce platform. While cryptocurrency currently accounts for less than 1% of global e-commerce transactions, consumer sentiment suggests a transformation is on the horizon, with 44% of consumers expecting cryptocurrency to become a mainstream payment option for online shopping in the coming years.

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