US In-Store Mobile Wallet Use Sees 4.3% Increase Since 2022

While U.S. consumers are rapidly embracing mobile wallets for peer-to-peer payments, their adoption for in-store transactions still lags behind many international counterparts, highlighting a dichotomy in the country’s digital payment evolution.

Data from the PYMNTS Intelligence report, “How The World Does Digital,” indicates mobile and digital wallets are becoming increasingly prevalent across various transaction types in the United States, though progress varies considerably depending on the context. For in-store purchases, the U.S. shows a comparatively low adoption rate, with only 17% of consumers using mobile payments for their last transaction.

This figure positions the U.S. behind leaders like Japan (35%) and Singapore, and is attributed, in part, to factors such as outdated terminal infrastructure, slower technological adoption and persistent consumer ties to traditional payment methods. Despite this lag, the share of in-store payments made with mobile/digital wallets in the U.S. did see an increase of 4.3% between 2022 and 2024, mirroring a broader trend away from traditional cards and cash, which saw declines of 7.7% and 8.4% respectively in the same period for in-store use.

The picture is notably different for online and peer-to-peer (P2P) transactions in the U.S. Mobile and digital wallets lead online transactions, accounting for 36.7% of the share. This method also demonstrated significant growth in the online space, increasing by 8.4% since 2022. Concurrently, credit card usage for online transactions in the U.S. declined by 6.2%, aligning with global shifts. The most striking area of mobile wallet adoption in the U.S. is in P2P transfers, where they have become the norm. The report indicates that over 70% of P2P transactions in the U.S. are now mobile-based, placing the country among the leaders in this category alongside Germany (73%) and Japan (67%). This strong preference for convenience-driven, app-based transfers has led mobile wallets to overtake bank transfers for P2P payments, with overall mobile P2P use rising from 52% in 2022 to 55% by the end of 2024.

Key data points highlighting U.S. digital engagement include:

• 70% share of consumers in the U.S. reporting the use of mobile/digital wallets for their last peer-to-peer (P2P) transaction. Mobile-based P2P is considered the norm and accounts for over two-thirds of such payments.
• 17% share of consumers in the U.S. using mobile/digital wallets for their last in-store transaction. While lagging globally, this represents a +4.3% change from 2022.
• 7% share of consumers in the U.S. using mobile/digital wallets for their last online transaction. This method leads online payments in the U.S. and saw an +8.4% change from 2022.

Beyond the U.S. focus, the report provides a broader view of the global payment shift. It highlights how digital and mobile wallets are leading online purchases globally and growing in-store, significantly driven by Gen Z and Asia-Pacific markets. Countries like Japan and Singapore lead in-store digital wallet adoption, while Germany and France show stronger reliance on cash and card methods.

The analysis also delves into demographic trends, showing Gen Z as leaders in in-store mobile adoption (+24.4% spike since 2022), and how different income groups are engaging with payment methods, including increased use of bank transfers among low- and middle-income consumers.

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