"Move over physical cards, mobile wallets continue to gain traction, upping the ante for banks to remain competitive. "With volumes of non-cash transactions expected to rise from 1,685 billion in 2024 to 3,540 billion by 2029, digital wallets and Account-to-Account (A2A) transfers are steadily replacing traditional card payments," according to Capgemini's 2026 World Payments Report. The shift is underscored by changes in how people shop, namely growth in e-commerce, mobile commerce and agentic commerce. "As digital becomes the default, both online and in-store transactions are increasingly dominated by wallets and instant payments, reshaping the payment mix and challenging legacy infrastructure," Capgemini wrote."
"Nearly two-thirds of Americans have used a mobile wallet, with about a third, 33%, saying they spend more with it than with a physical card, according to a recent LendingTree. What's more, among mobile wallet users, 43% said they like the faster checkout, 16% appreciate the increased security and 11% dislike carrying cards. Additionally, 43% believe mobile wallets are more secure than physical cards."
"What's at stake: Banks generally undervalue the influence of social media and video streaming platforms, which are influential in consumers' decisions, according to Lauren Taylor, global leader for BCG's Center for Customer Insight. Forward look: Cryptocurrency is increasingly becoming a way for consumers to engage with mobile wallets. Of course, there's still a generational divide when it comes to mobile wallet usage, but that's poised to diminish over time. Here's what banks need to know about the changing landscape for mobile payments in 2026 and beyond."
Mobile wallets and Account-to-Account transfers are steadily replacing traditional card payments as non-cash transactions surge from 1,685 billion in 2024 to a projected 3,540 billion by 2029. Growth in e-commerce, mobile commerce and agentic commerce is shifting payment behavior toward wallets and instant payments. Nearly two-thirds of Americans have used a mobile wallet; many cite faster checkout, perceived increased security and convenience. A notable share of users avoid venues that do not accept digital payments. Banks often undervalue social media and streaming platforms' influence on consumer choice. Cryptocurrency is emerging as another channel for mobile wallet engagement, increasing competitive pressure on banks.
Read at American Banker
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