BOSTON–Digital wallets are increasingly changing not only how consumers pay at checkout, but also where the money used for those purchases comes from, according to research from PYMNTS Intelligence.
A PYMNTS Intelligence report, “Apple Pay @11: Usage Is Up, but Competitors Are Gaining Ground,” found mobile wallet use is increasing both in stores and online, while a growing share of consumers are funding purchases with balances held directly within digital platforms.
The report is based on a survey of 3,339 U.S. consumers.
According to PYMNTS Intelligence, more than 3 in 10 consumers used a mobile wallet in a store during the previous week, more than double the share reported in 2024. The research also found competitors to Apple Pay are attracting more users as the overall digital wallet market expands.
The Findings
Among the key findings:
- 11.8% of consumers used a digital wallet for their most recent in-store purchase in 2025, up sharply from just 0.9% in 2022.
- 12.1% used cash for their most recent in-store purchase, down from 17.6% three years earlier. That leaves digital wallets just 0.3 percentage points behind cash.
- 3.7% paid for their latest in-store wallet purchase using a stored wallet balance, up from 1% in 2023, representing a 270% increase.
PYMNTS Intelligence said the growing use of stored balances is expanding the role digital wallets play in the payments process. Instead of functioning primarily as a digital repository for traditional credit and debit cards, wallets can increasingly operate more like accounts themselves, holding funds that consumers can use directly for purchases.
‘Seamless Checkout Experience’
That evolution could allow wallet providers to create a more seamless checkout experience while giving consumers another option for managing funds and making purchases.
Traditional payment cards, however, remain a central part of the digital wallet ecosystem.
Debit cards were the largest underlying funding source for consumers’ most recent in-store wallet transactions, accounting for 4.1%, according to the report. Stored wallet balances were close behind at 3.7%, while credit cards accounted for 2.5%. Bank transfers and other funding methods each remained below 1%.
The broader payment data also indicates digital wallets are expanding alongside traditional payment methods rather than simply replacing them.
What the Data Show
For consumers’ most recent in-store transactions in 2025:
- Debit cards accounted for 46.3%.
- Credit cards represented 31.7%.
- Cash or stored balances accounted for 15.9%.
The findings suggest digital wallets can continue gaining share at checkout even as banks and card issuers remain closely connected to the transactions through the debit and credit cards consumers load into their wallets, according to PYMNTS Intelligence.
