China and India lead the charge as digital wallets overtake cash and cards in Asia

Digital wallets are the fastest growing payment method in the world, and Asia is leading the charge, according to the latest report by payments processing firm Worldpay. 

Globally, digital wallets accounted for 50% of e-commerce purchases and 30% of in-store purchases in 2023, accounting for $14 trillion in transaction value. That figure is expected to hit $25 trillion by 2027, the report showed.

Consumers in Asia-Pacific are the biggest users of digital wallets as physical cards and cash usage continue to decline.

Last year, 70% of online payments and 50% of in-store payments in Asia-Pacific used digital wallets — the highest among all the regions.

Total spending in the region for digital wallets — which include both e-commerce purchases and point-of-sales trade (POS) — amounted to almost $10 trillion in 2023, led mostly by China.

Worldpay defines "point-of-sales" as payment in brick-and-mortar stores.

In comparison, digital wallet spending in Europe accounted for just 30% of e-commerce transactions and 13% of physical payments. While in the U.S., digital wallets usage made up for 37% of online sales and 42% of physical spending. 

"Apart from convenience, the biometric technology in a digital wallet that enables payment only with your face or thumbprint gives a larger sense of safety and security," Phil Pomford, general manager for Worldpay's e-commerce team in the Asia-Pacific region, told CNBC.

"Clearly your phone can get stolen, but nobody can use your card without facial recognition, but your physical card can be stolen and used through contactless payment," he added.

The survey was conducted in 40 markets in Asia-Pacific, Europe, Middle East and Africa, as well as North America and Latin America.

Asia-Pacific consumers' use