Digital payments chart double-digit growth

Digital payments grew nearly 11-fold between 2014 and 2024, while cash usage dropped like a rock. According to the 10th edition of the Worldpay Global Payments Report, digital payment options such as account-to-account transfers, buy now pay later, cryptocurrencies and digital wallets totaled $18.7 trillion last year, compared to $1.7 trillion in 2014.

During that same 10-year span, in-store cash usage dropped from 44 percent to 15 percent of purchases. The total value of digital payments is expected to exceed $33.5 trillion by 2030, according to Worldpay's report.

Much of the decline in cash usage is has been attributed to the COVID-19 pandemic, during which consumers shifted their priorities to contactless payments. The report predicts cash usage at the POS will fall at a compound annual rate of 2 percent between now and 2030.

At the same time cryptocurrency could experience a significant uptake. Worldpay reported that crypto spend will more than double, from $16 billion in 2024 to $38 billion in 2030

Changing consumer preferences

"Consumer payment preferences have changed dramatically since we launched the first edition on the Worldpay Global Payments Report in 2015," said Adam Coyle, chief strategy officer at Worldpay. "A confluence of factors – advancements in smartphone technology, the exponential growth of fintech, and supportive regulatory frameworks – combined with changing consumer expectations for ease and convenience, have fundamentally changed the way we make payments."

The annual report is a comprehensive study that provides insights into the trends that have defined the past, as well as the present and future of payments. Typically, the report offers insights on a year-over-year basis. But since was the 10th annual report, Worldpay said it chose to make 10-year comparisons, as well as some forward-looking predictions.

"To keep pace as consumers increasingly embrace innovation, merchants must adapt to the shifting payments landscape," Coyle said in a statement. "The ongoing proliferation of digital technologies will shape commerce by further merging online and in-store experiences, enhancing convenience, reliability, security and speed."

Cards rule, for now

Sixty-seven of all consumer spending (online and in-store) in 2024 came directory from credit, debit and prepaid cards. But digital wallets are gaining favor. Online spending with digital wallets grew from 15 percent to 39 percent between 2014 and 2024 in the United States, and it grew eight-fold, from 2 percent to 16 percent at the physical checkout during that same period.

This is not to say credit and debit cards are passe, as 65 percent of Americans fund their digital wallets using their debit and credit card accounts. Over $28 trillion is expected to be spent via digital wallets, online and in-store, by 2030.

Account-to-account payments are growing, too. Globally A2A transactions tied to ecommerce are projected to reach $936 by 2030, up from $152 billion in 2014. Emerging economies, like Brazil, once heavily reliant on cash, have reshaped their payment systems. With the launch of Pix, a real-time payment system in Brazil, the value of A2A ecommerce spend in that market ballooned from $3.6 billion in 2020 to $35.3 billion in 2024.

New ways to spend catching on fast

Global ecommerce spending increased nearly six-fold between 2014 (when it totaled $1.2 trillion) and 2024 (when it exceeded $6.8 trillion), according to Worldpay's data. The use of smartphones for ecommerce purchases, globally, tripled over decade, from 19 percent to 57 percent.

Here are a few additional insights of note from the Worldpay report:

• Digital wallets represented 53 percent of ecommerce spending in 2924 and 32 percent of in-store spending.

• Between 2014 and 2024 digital wallet use grew 10-fold for both online and in-store transactions, accounting for $3.6 trillion and $12 trillion, respectively.

• Buy now pay later saw rapid market acceptance, with online spending growth using this payment method growing from $2.2 billion in 2014 to a whopping $342 in 2024.

Whether you want to upgrade your POS offerings, find a payment gateway partner, bone up on fintech regs or PCI requirements, find an upcoming trade show, read about faster payments, or discover the latest innovations in merchant acquiring, The Green Sheet is the resource for you. Since 1983, we've helped empower and connect payments professionals, starting with the merchant level salespeople who bring tailored payment acceptance and digital commerce tools, along with a host of other business services to merchants across the globe. The Green Sheet Inc. is also a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals.

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