Mobile proximity payments are entering the mainstream

Mobile proximity payments—those made in-store via mobile wallets—will grow as they continue building a feature ecosystem that binds payments to users’ daily commerce. Providers must also develop wallet features that marry consumers’ online and in-store purchase experiences.

• Buoyed by new feature innovation and simplified access to those features, mobile wallets are pivoting well past being mere “wallets” into helping users navigate everyday life.
• That will spur US proximity mobile payment transaction value past the $1 trillion milestone by 2027.

Per-user mobile proximity spend will grow as users adopt digital wallet features.

• By 2028, about half of US smartphone users will make proximity mobile payments at least once a month, per our forecast.
• The number of users will grow at a moderate 4.4% average annual rate from 2024 to 2028, topping out at 132.6 million.
• Proximity mobile payment transaction value will grow much faster (17.2% annually) in that period.

Key takeaway: These new features are transforming digital wallets into commerce enablers. They help users organize their commercial experience and maximize deal-seeking. Examples range from Apple Wallet’s digital order tracking and receipts to Google Pay’s loyalty program integrations.