Digital wallets to make up $11bn of online spending by 2026

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Digital wallets are estimated to account for $11 billion of online spend by 2026, according to figures from emerchantpay.

The study, which has been published to examine consumer behaviour post pandemic shows that there will be stark differences in attitudes towards payments between generations.

The report also shed light on the potential economic contribution of trends such as subscriptions and cryptocurrency payments.

Over a quarter of respondents (29 per cent) of the survey said that they took out more subscriptions in 2020 than they did the previous year, post pandemic.

The average spend totalling to around £304 per year.

Subscriptions could be worth up to $20.39 billion per year for all British consumers.

Payment provider PayPal was the UK’s preferred method of online payment, chosen by 34 per cent of respondents, a figure which rose to 46 per cent among Gen X participants.

READ MORE: Card payments hit near 2-year high this bank holiday in “a sign of more positive times to come”

Almost 15 per cent of Gen Z respondents and 11 per cent of Millenials believe that digital wallets will be their go-to method of conducting transactions.

As a consequence, this means that by 2026, digital wallets will account for more than £11 billion in online spending.

Buy now pay later (BNPL) schemes was also another payment method that saw an increase during the pandemic.

Over 36 per cent of respondents said BNPL schemes encouraged them to spend while 19 per cent were discouraged by services.

Londoners were most encouraged to use BNPL schemes and made up 45 per cent of respondents.

“These findings paint a clear picture of a future generation of consumers, much more acquainted with new payment methods than their parents and grandparents,” emerchantpay’s Angus Burrell said 

“Today’s commerce environment is evolving faster than ever and businesses must keep up.

“With so much competition online and, as we’ve seen from previous report chapters, speed and efficiency playing such an important role in encouraging people to buy, the payment methods that merchants offer can mean the difference between sale or fail.”

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