The digital wallet wave: Why lenders can’t afford to miss it

Digital wallets have been around for about a decade, and they’ve come a long way from their humble beginnings. At first, people did not use them because they were unfamiliar and had security concerns. But guess what? Those days are behind us! Today, digital wallets are trusted by consumers and merchants alike, and their adoption is skyrocketing.

You might be thinking, “That’s great, but what does it have to do with me as a lender?” Well, here are a few compelling reasons why you should consider offering digital wallet solutions for bill payments:

• Consumer convenience: Digital wallets make payments quick and easy. With just a few taps on their mobile devices, your customers can pay their bills without the hassle of entering card details. It’s all about making their lives easier and more convenient.
• Enhanced customer experience: A seamless payments experience can significantly boost customer satisfaction. Digital wallets offer real-time notifications, personalized barcodes, and biometric protections, making bill payments a breeze.
• Faster payments: Offering digital wallet payment options can lead to faster payments, which means recognized revenue more quickly and lower delinquency rates. It’s a win-win for both you and your customers.
• Security: Digital wallets come with advanced security features like encryption and tokenization, reducing the risk of fraud and protecting sensitive financial information.
• Appeal to younger generations: Millennials and Gen Z love digital wallets for their convenience. Catering to tech-savvy customers enhances interactions and streamlines payments. In our latest ACI Speedpay Pulse Report, Gen Z and Millennials display the strongest year-on-year growth in preference for mobile.

In a world where consumer preferences are rapidly evolving, staying ahead of the curve is crucial. One of the most impactful ways billers can maintain a competitive edge is by adopting digital wallet payment options. These modern, efficient methods are no longer just a convenience, they’re a consumer expectation.

According to Datos Insights’ 2025 Global Digital Payments Market Report,¹ digital wallets now account for 83% of global digital payments volume, making them the most widely used digital payment method worldwide. This shift is not just a trend, it’s a transformation in how consumers interact with businesses.

In the U.S., digital wallets represent 33% of total digital spending, which continues to grow as more consumers prioritize speed, security, and convenience.¹ Globally, digital wallet spending reached $41 trillion in 2024, with significant growth continuing into 2025.²

Digital wallets are not just a convenience. They’re a powerful tool for expanding access to financial services, especially for underbanked populations. In 2025, approximately 1.4 billion adults worldwide remain unbanked, lacking access to traditional financial institutions.³ However, the rise of mobile wallets is helping bridge this gap.

Digital wallets also promote financial inclusion by providing payment options for unbanked consumers. Many unbanked individuals use mobile wallets to make bill payments, helping you reach a broader customer base.

Digital wallets cut expenses by replacing paper billing and manual payments with digital delivery, saving postage and administrative costs. Here are additional cost-saving benefits:

• Reduced postage costs: No need to mail paper bills or statements
• Lower administrative overhead: Automates billing and payment processes, reducing manual labor
• Fewer printing expenses: Eliminates the need for paper, ink, and printing equipment
• Decreased payment processing fees: Digital transactions can be more cost-effective than traditional methods
• Minimized late payment penalties: Automated reminders help users pay on time
• Reduced customer service costs: Fewer billing inquiries due to real-time access to payment history
• Lower storage and filing costs: Digital records reduce the need for physical storage space
• Improved cash flow management: Faster payments mean better liquidity and less reliance on credit

Digital wallets are not just a passing trend; they’re the future of payments. By offering digital wallet solutions for bill payments, you can enhance the customer experience, improve payments efficiency, reduce costs, and gain a competitive edge in the market. In short, digital wallets are no longer optional, they’re essential for staying competitive in today’s fast-paced, digitally driven marketplace.