North America Digital Wallet Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Device (PC/Laptops, Smartphones), By Application (Money Transfer, Recharge, Movie Booking, Food Ordering, Others), And By Country - Forecasts From 2023 To 2028

The transaction value of the North American digital wallet industry is projected to witness a compound annual growth rate of 16.20% to grow to US$416.703 billion by 2028, from US$145.688 billion in 2021.

Payment systems have adapted swiftly to how consumers pay for products and services ever since the start of the COVID-19 outbreak. There was a dramatic change in how purchases were made physically, online, and through other means. The following figure represents the trend of e-commerce sales in the United States from 2019. Moreover, the global e-commerce industry is still expanding at an exponential rate. According to our estimates, this industry will surpass $14.5 trillion in 2028 and will witness a CAGR of more than 11% from 2020 to 2028.  Consequently, internet shopping is merging itself into a conventional store-based business.

Digital transactions have become fairly prevalent as a result of growing digitization. According to the World Bank, internet consumption has surged in North American countries. For instance, internet consumption reached 72% of Mexico’s entire population in 2020, rising from 44% in 2014. As a result, increased internet penetration, in addition to the rising acceptance of numerous digital payments via wallets by various e-commerce enterprises, has fueled market growth.  Moreover, digital wallets allow users to make payments, save funds, track payments, pay bills, and perform a variety of other things using smartphones or computers/laptops. This has led to several major developments in the region.

 The North America digital wallet market is driven by shifting customer preferences in favour of digital payments.

Digital wallets are enabling quicker, safer methods of handling and transferring money as cash continues to be replaced by electronic means of payment. This gives users greater flexibility and choice when it pertains to sending money to relatives and friends, making purchases, or receiving payments from consumers. Consequently, market players like Paypal are witnessing increased revenue growth. The enhanced infrastructure for internet access, coupled with the development of new digital wallet platforms, shows the potential for market growth during the projection period. The new digital payment standard has arrived owing to the COVID-19 outbreak. It encompasses the continuing rise of the use of digital and contactless payment methods as well as transactions made through e-commerce.

Payments Canada reports that contactless and electronic payments remain very common in Canada. 45% of Canadians who use their mobile wallet for in-store purchases indicate that they do so more frequently now than they did before the outbreak. Furthermore, 22% of Canadians would be at ease utilizing a QR code to pay on a retailer's website if it was provided. QR codes have made it more convenient for people to use digital wallets for their day-to-day transactions, from buying groceries to paying for rides on public transport. These wallets have also become easier to use over time, with several now offering simple and intuitive interfaces that make it easy for users to navigate and use them. This has helped to increase the adoption of digital wallets among less tech-savvy users, who may have been hesitant to use them in the past.

Key Developments.

• In January 2023, Grupo Coppel, which owns one of the biggest chains of department stores and financial systems in Mexico, announced the launch of Coppel Access, a multipurpose digital wallet application.
• Meta released its wallet service in June 2022 as a generic form of payment that could be used in both the real world and the metaverse's virtual reality. The wallet service, Meta Pay, is a modification of Facebook Pay. According to the company, utilizing Meta Pay may provide the consumer access to a wider range of digital items that come with certificates of ownership.
• AMC theaters announced the acceptance of digital wallets such as Apple Pay to facilitate contactless payments at theatres from August 2021.

Based on application, the North America digital wallet market is expected to witness positive growth in movie booking segment.

The emergence of third-party and theatre-owned online movie ticket booking applications such as movietickets.com and Atom Tickets on the android play store and apple store is promoting the adoption of digital wallets for movie booking purposes in the region. One of the prime reasons driving the segment expansion is the increased utilization of movie ticket booking applications across North American countries. The revenue generated by AMC Theatre online application amounted to US$62.5 million in 2022 while the Fandango application reported revenue of US$80.3 million in 2022.

The pandemic restricted the development of the movie booking sector in the North American digital wallet system. However, the reopening of movie theatres post the lockdown is encouraging the recovery of movie spending and expenditure in North American countries which offers an opportunity for the development of digital wallet use for movie booking purposes. Motion Pictures Report further stated that approximately 940 films started their production in the year 2021. The rise in movie production activities by entertainment and production companies further encourage the consumption of movies which serves as another driver to expand the movie booking sector’s share in the North American digital wallet industry.

United States accounted for a major share of the North America digital wallet market, based on country.

Increased access to smartphones and faster technologies like 5G has been a significant driver of the growing demand for digital wallet systems in the United States. For instance, according to the Center for Strategic and International Studies (CSIS), some part of 5G is available in more than 2,000 American cities and has over 200 million potential customers. As more people in the country have access to smartphones, the adoption of digital wallets has become more widespread, particularly among younger generations who are more tech-savvy. Smartphones have also made it easier for digital wallet providers to reach consumers through mobile apps, which can be downloaded and used with minimal effort.

North America Digital Wallet Market Scope:

Key Market Segments

• BY DEVICE
  • PC/Laptops
  • Smartphones
• BY APPLICATION
  • Money Transfer
  • Recharge
  • Movie Booking
  • Food Ordering
  • Others
• BY COUNTRY
  • USA
  • Canada
  • Mexico