Why digital wallets are winning over consumers in 2025

Australia’s digital wallet adoption has surged in recent years, with digital wallets becoming a frontrunner in payment solutions worldwide in recent years thanks to their convenience, security, and speed.

Airwallex’s recent Cross-border eCommerce report shows just how big this trend has become: 37% of Aussies, 33% of Brits, and 27% of Americans now prefer using digital wallets like Apple Pay, Google Pay, and PayPal. 

The shift is even more impressive in China, where nearly half the population (48%) opts for digital wallets, including local favourites like Alipay and WeChat Pay. 

Cards are being added to mobile wallets in unprecedented numbers in Australia, including transport passes and Medicare cards, and the volume and value of transactions powered by digital wallets have increased dramatically in recent years.

According to the Australian Banking Association, between 2018 and 2022:

• Cards registered to mobile wallets rose from just over two million to 15.3 million – a 760% increase. 

• The value of mobile wallet transactions jumped from $746 million to $93 billion – a 12,400% increase.

• The number of mobile wallet transactions rose from 29.2 million to 2.4 billion – an 8,200% increase.

This growing preference underscores how strongly Australian consumers are embracing ease, security, and efficiency in payments. From online purchases to tap-and-go at a café, digital wallets are fast becoming the standard across the country.

Types of digital wallets used in Australia

Digital wallets generally fall into three categories:

• Device-integrated wallets like Apple Pay and Google Pay, linked to smartphones or smartwatches

• App-based wallets such as PayPal or Afterpay, offering standalone payment ecosystems

• Bank-operated wallets, including Commbank Tap & Pay and ANZ Tap & Pay

Each type appeals to different users based on their habits, platforms, and spending styles.

Which are the top digital wallet providers?

In a recent Statista survey, respondents were given a list of contactless payment brands and asked which they had used in the past 12 months to pay in stores, restaurants or other points of sale with their mobile device. The top 10 brands cited were:

1. Apple Pay - 52%

2. Afterpay - 32%

3. PayPal - 31%

4. Google Pay -26%

5. Commbank Tap and Pay - 21%

6. ANZ Tap and Pay - 15%

7. ZipPay - 15%

8. Alipay - 9%

9. Bank Australia Tap and Pay - 9%

10. Samsung Pay - 8%

To put these figures in perspective, Apple Pay leads by a significant margin, likely due to its seamless integration with iOS devices and widespread merchant support. Afterpay and PayPal also rank highly, reflecting Australia's appetite for buy-now-pay-later options and trusted online payment platforms. This variety highlights how digital wallets cater to different user preferences—from tap-and-go simplicity to instalment flexibility and trusted brand familiarity.

While the uptake of digital wallets was accelerated by Covid, making people reluctant to handle cash or cards, the adoption rates highlight a deeper, more lasting preference for the ease and convenience digital wallets offer. 

Most importantly, the numbers reveal how mobile devices have evolved into all-in-one "life management tools," effortlessly managing banking, and payments, along with a wide array of our other personal tasks and obligations.

The crucial role of digital wallets for eCommerce success

Digital wallet payment options have now become crucial for eCommerce businesses. According to the Reserve Bank of Australia's February 2025 data, Australians made 520 million mobile wallet transactions in a single month, totalling $24.3 billion.

Retailers are responding quickly. Over 70% of Australian businesses now accept at least one form of digital wallet payment, aligning with customer expectations for faster, more secure checkout experiences. By integrating a digital wallet for business into their point-of-sale systems, eCommerce operators can better connect with tech-savvy millennials and Gen Z shoppers who increasingly favour seamless digital payment methods.

Ultimate convenience and enhanced shopping experience

Digital wallets offer the ultimate convenience, allowing customers to make purchases with just a few taps on their mobile devices. This ease of use can significantly enhance the shopping experience, leading to higher customer satisfaction and increased conversion rates.

Streamlined checkout process

What’s more, digital wallets streamline the checkout process, reducing cart abandonment rates. The quicker and more seamless the transaction, the less likely customers are to abandon their carts during a slow or stressful checkout experience. This efficiency not only improves customer satisfaction but also boosts the overall sales and revenue for the business.

Advanced security features

Security is a major driver of digital wallet adoption. Features like biometric authentication, two-step verification, encryption, and tokenisation work together to protect sensitive customer data and limit fraud risks. For eCommerce businesses, offering secure payment methods is now a standard expectation from customers who prioritise secure, hassle-free checkouts for building trust and encouraging repeat purchases.

Reflecting a shift in consumer behaviour

Digital wallets aren’t just a trend – they reflect a broader shift in consumer behaviour, and their widespread use speaks to the pace of Australia’s digital wallet adoption in recent years. With a significant portion of consumers globally preferring to transact using a digital wallet, businesses that don’t offer these options risk losing out on a growing segment of the market.

Boosting revenue through increased spending

If those reasons aren’t sufficient evidence of the power of digital payments, it’s also been found that consumers spend over 30% more on retail and grocery products when using digital wallets, making them an important source of revenue-building for retailers.

Positioning for success

Ultimately, eCommerce businesses that embrace digital wallets position themselves for success and tap into the momentum of Australia’s digital wallet adoption, which continues to shape how consumers pay and engage online in a rapidly evolving market. By prioritising convenience, security, and customer satisfaction, they can attract and retain more customers, ultimately driving growth and profitability.

Accept payments effortlessly with Airwallex

Creating a global, multi-currency account with Airwallex allows you to easily and seamlessly accept payments for your business from customers worldwide via their preferred payment methods, with no coding required. 

The benefits of using Airwallex as your payment processing provider:

• Easily integrate with popular eCommerce platforms (like Shopify and WooCommerce) or create shareable Payment Links in just minutes.

• Increase conversions with local payment methods by allowing customers to pay using their preferred payment method, from global cards to popular local non-card options.

• Get competitive interbank rates and minimise unnecessary FX fees so you can improve your profit margins and free up funds to grow your business.

• Streamline your financial operations through integrations with Xero and other leading accounting software.

• Provide customers with a secure and reliable way to pay. With over 60 security licenses and permits globally, we meet the highest international security measures and local requirements.

Airwallex supports global payments and finances for over 100,000 businesses just like these, allowing them to manage global finances and grow without limits.

Digital wallet adoption in Australia: Frequently asked questions

What is a digital wallet?

A digital wallet is a virtual payment system that stores payment information and allows consumers to make purchases using smartphones, computers or wearable devices.

What are the types of digital wallets used in Australia?

Digital wallets used in Australia generally fall into three categories:

• Device-based wallets (e.g., Apple Pay, Google Pay) that are built into smartphones and smartwatches.

• App-based wallets (e.g., PayPal, Afterpay) which function as standalone mobile apps.

• Bank-linked wallets (e.g., Commbank Tap & Pay, ANZ Tap & Pay) offered by traditional banks.

Each type plays a unique role in the broader context of Australia’s digital wallet adoption, catering to different user habits and transaction preferences.

What is the most used digital wallet in Australia?

Apple Pay leads in usage, with 52% of respondents citing it as their go-to option, followed by Afterpay and PayPal.

How are Australians using digital wallets in 2025?

According to the Reserve Bank of Australia, Australians made 520 million mobile wallet transactions totalling $24.3 billion in a single month, showing widespread integration across everyday purchases.

Which digital wallets are best for business?

Apple Pay and Google Pay offer strong customer reach and security, while PayPal and Afterpay provide more robust eCommerce integrations.

Disclaimer: This information doesn’t take into account your objectives, financial situation, or needs. If you are a customer of Airwallex Pty Ltd (AFSL No. 487221) it is important for you to read the Product Disclosure Statement (PDS) for the Direct Services, which is available here.