Worldpay predicted that in the upcoming years, the adoption of digital wallets by consumers would soar on a global scale in its 2024 Global Payments Report.

According to its analysis, which examines the state of payments in 40 countries, millions of people are embracing digital wallets, ushering in a golden age of payments.

According to Worldpay, the UK is setting the standard for digital wallets supported by credit cards throughout Europe. By 2027, these wallets are expected to handle £203.5 billion (US$256 billion) in e-commerce transactions in the country.

Indeed, Worldpay believes digital wallet transactions will treble between now and 2027 at UK point-of-sale (POS) terminals, rising from 14% of all POS transactions now to 29%.

Digital wallets: The payments of the future

According to Worldpay's analysis, with the predicted sharp increase in digital wallet use in the UK, digital wallets will account for £493 billion (US$620 billion) of all transaction value by 2027.

Worldpay's paper highlights the profound changes in consumer payment behavior that are currently occurring, using the UK as a case study for the adoption of digital wallets.

According to Worldpay, the COVID-19 pandemic marked a turning point in this trend, as contactless payment systems and digital purchases gained widespread acceptance among customers globally.

More and more customers are becoming confident in new payment methods as technology advances.

Furthermore, the quick development of digital wallets is helping the e-commerce industry in addition to marking a change in customer behavior.

According to Worldpay, the use of digital wallets in the UK alone is expected to expand at a compound annual growth rate (CAGR) of 7% until 2027.

"Consumers are not just embracing digital wallets; they are driving a revolution in the payments landscape," says Pete Wickes, General Manager, EMEA at Worldpay.

The pandemic's combined effects, with digital wallet technology maturing and being implemented in new ways in recent years, have resulted in a massive increase in use in the UK and around the world.

"Whether purchasing in-store or online, digital wallets offer a level of convenience and ease of use that is difficult to dispute. Based on this, businesses now have a great chance to expand the range of payment options they offer in order to better serve their clientele."