Digital Wallets Overtake Cash and Card Payments in 2025

More than half of the world’s population were using digital wallets in 2025 with the number expected to reach six billion by the end of the decade, according to a recent study by Juniper Research.

While talk of a cashless society is nothing new, the world is undeniably closer than ever to that reality. In many markets, that trend has already been visible for quite some time, whether in the form of commuters tapping a phone at a subway turnstile or friends splitting a restaurant bill through Venmo. In several emerging markets across Asia and Africa, where a large percentage of the population remains unbanked, mobile wallets have even leapfrogged traditional bank accounts entirely.

However, the rapid proliferation of wallets—particularly in countries like India or Indonesia—there’s already an oversaturation of the market, with consumers being able to choose from dozens of digital wallet apps. This poses a significant challenge to merchants, such as confusion over which platforms to accept. Things are becoming increasingly complex for consumers too who, being inundated with so many choices end up with balances fragmented across multiple accounts. For instance, they might use one app for handling multiple currencies and cross-border payments, another for small loans, and yet another for virtual payment cards.

“Changing user behaviour such as card usage, particularly when it is long-established, means providing incentives,” Thomas Wilson, an analyst at Juniper Research, said in a release. “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.”

For the fintech industry, there’s clearly a growing need for consolidation and diversification at a time when the digital wallet wars are making it harder than ever to keep up. Fortunately, there’s already been significant movement in place, with traditional financial services institutions acquiring successful payments and transactions fintechs to expand their services. Some of the biggest fintechs, such as the UK’s Revolut, are also turning into all-in-one ‘super apps,' such as Buy Now, Pay Later (BNPL) and small loans. Interoperability is also gradually improving, as national banks link their payment networks.

Underpinning the trend is the growth and standardization of instant payment infrastructure, which is vital for continued success and regulatory enforcement. For instance, in the US, the Federal Reserve launched its FedNow service in mid-2023, which quickly grew to over 1,500 participating banks and credit unions across the country by late 2025.

Recently, they also increased the transaction limit for business payments to $10 million, which means that US companies—in addition to consumers—can now send money 24/7 almost instantaneously. While awareness and adoption continues to grow, the payments industry is already well on its way towards a total shift from physical to digital and batch to instant, heralding a new golden age for fintech.