Digital wallets on the rise in popularity

Digital wallets are becoming increasingly popular in the U.S., according to a recent survey by J.D. Power. The survey revealed that 48% of U.S. consumers have used digital wallets in the past 90 days, which marks a 12 percentage point increase from the previous year. Customer satisfaction with digital wallets also saw a bump, with a 4-point increase to 664 on a 1,000-point scale, with ease of use being a major contributing factor.

Among the consumers who have embraced digital wallets, 40% have used PayPal, 28% have used Apple Pay, 22% have used Venmo, and 19% have used Cash App Pay. Venmo and Cash App Pay have emerged as the top choices in terms of customer volume among monthly users, while Apple Pay takes the lead among those who use digital wallets at least five times a month. Surprisingly, only 57% of small businesses currently accept digital wallets, compared to the 94% that accept physical cards.

As digital wallets continue to gain traction among consumers, it’s clear that businesses will need to adapt to meet the changing payment preferences of their customers. With convenience and ease of use driving the popularity of digital wallets, it’s important for businesses to consider expanding their payment options to include these increasingly popular payment methods.