The transaction value of mobile payments continues to grow

Mobile payments are growing in popularity, with more money being transferred through them each year as consumers embrace their convenience. This technology is transforming how people shop and pay, making mobile payments the preferred payment method worldwide.

As consumer spending habits shift, both online and brick-and-mortar businesses are adapting to meet this demand. But just how dominant have mobile payments become?

Mobile payments will account for over $1 trillion in U.S. transactions by 2028. 

Mobile payments are transactions conducted using a mobile device, such as a smartphone, tablet, or wearable device, instead of cash, check or traditional card-based payments.

In 2024, point of sale mobile transactions in the U.S. reached $670.51 billion, marking a significant 21.4% increase from 2023. This rapid growth highlights the increasing dominance of mobile payments among consumers. As a result, the market is expected to continue expanding, surpassing $1 trillion in transactions by 2028.

The rising adoption of mobile payments is undeniable, with more consumers embracing this convenient payment method. Experts predict this trend will persist, with the industry projected to grow at a Compound Annual Growth Rate (CAGR) of 36.2% between 2023 and 2030. 

Globally, mobile payments have become the leading point of sale payment method, currently holding a 30% market share, which is expected to increase to 45% by 2027.

Mobile payment usage is growing amongst U.S. consumers. 

With mobile payments holding a significant share of the global payment market, consumer adoption continues to grow rapidly. In 2024, 39.3% of U.S. consumers used proximity mobile payments, making up 49% of smartphone users—a 22.2% increase from 2020.

These sharp jumps over just a few years highlight the accelerating shift toward mobile payments. As a result, 16% of consumers now rely on mobile payments for everyday purchases. In the U.S. alone, 53% of Americans used digital wallets more frequently than traditional payment methods like credit or debit cards in 2024.

Businesses that integrate mobile payment options into their point of sale systems stand to gain significantly. In 2024, U.S. consumers spent an average of $3,693 via mobile payments, an 87% increase since 2020. 

As mobile payments become the preferred choice for more consumers, investing in a future-ready POS system that supports them is now essential.

While mobile payments are often associated with smartphone transactions at physical stores, e-commerce is following a similar trajectory. By 2025, mobile payments will account for 79% of all digital transactions, an 8% increase from 2021, further solidifying their dominance in online shopping.

Young U.S. consumers are powering the mobile payment revolution. 

Mobile payment systems are most popular among younger consumers. In the U.S. 65% of Gen Z, and 53% of Millennials use mobile wallets, compared to just 21% of Baby Boomers.

Is this due to younger generations' greater adaptability, or simply because they have grown up with modern technology and are more comfortable adopting new innovations? 93% of consumers aged 25 or under say they are likely to use mobile payment apps, while only 50% of those 65 and older feel the same.

Interestingly, research shows that willingness to adopt mobile payments also increases with higher education levels and income. Additionally, credit scores have been linked to the likelihood of using mobile payment technology. 

However, regardless of these factors, younger generations remain the most eager to embrace mobile payments and the convenience they offer.

The power of mobile payments in economic growth.

Ultimately, the rapid growth in consumer willingness to spend more via mobile payments, the rising transactional volume, and the increasing global market value highlight the industry's undeniable power. 

Businesses choosing to adopt mobile payment solutions in their stores will no doubt benefit from the ongoing increases.

While the market may appear segmented by demographics, the mobile payment industry is undeniably expanding. It not only simplifies transactions but also fuels economic growth in major markets worldwide.

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