In the U.S., digital wallets have become popular for everyday transactions, yet their full potential remains largely untapped. While smartphones are everywhere, and digital wallets are growing in accessibility, American consumers are still hesitant to embrace the broader capabilities of these tools.
According to a PYMNTS Intelligence report, “Digital Wallets Beyond Financial Transactions: U.S. Edition,” created in collaboration with Google Wallet, U.S. consumers are mostly using digital wallets for payments, but the range of non-financial functions, such as storing keys, event tickets or even verifying identity, has not gained traction.
Current Use: A Focus on Payments
Digital wallets in the U.S. are commonly used for transactions. According to the report, 48% of consumers use their digital wallets for online shopping, while 39% use them in-store. While these numbers reflect a steady trend, they also highlight a gap in usage, especially in comparison to other regions like the U.K., where a significant portion of the population embraces digital wallets for non-transactional uses. Consider 23% of U.K. consumers use their digital wallets to store travel or identity-related credentials, a feature that remains underutilized in the U.S.
While payment functions dominate, some digital wallet platforms are showing slight variation. For example, Apple Wallet users are more likely to make in-store purchases (72%) than online transactions (62%), which contrasts with the general preference for online shopping across other wallet users. This suggests that while in-store usage of digital wallets is not the norm, certain platforms are seeing higher engagement.
Limited Adoption of Non-Transactional Features
Despite the versatility of digital wallets, many U.S. consumers are unfamiliar with their non-transactional uses. Only 4.1% use digital wallets for travel-related services such as boarding passes or hotel keys, a functionality that has been widely embraced in other countries. In comparison, 21% of consumers in the U.K. use their digital wallets for similar purposes.
Even fewer consumers (3.4%) use digital wallets for event tickets, and less than 3% take advantage of rewards programs stored in their wallets. These figures suggest that while digital wallets could be used for a much wider range of activities, they remain largely limited to financial transactions.
The limited usage contrasts sharply with the high satisfaction levels among those who have explored digital wallets’ broader features. Notably, 77% of users who have accessed non-transactional capabilities reported being highly satisfied, underscoring the growth potential if these features were more widely available.
The Future: Digital Wallets as an Identity Verification Tool
Digital wallets have significant potential for identity verification, though only a few U.S. states currently allow digital storage of driver’s licenses or other ID forms. The report noted that 79% of U.S. consumers needed to verify their identity last year, primarily for banking transactions, and 41% expect to use their wallets for this purpose in the next few years. This presents an opportunity for wallet platforms to integrate ID verification with services like government and alcohol purchases.
As consumers become more familiar with digital wallets, there’s an opportunity to expand their use beyond payments to include everyday activities like travel and identity verification. With growing interest and high satisfaction among early adopters, digital wallets are set for broader adoption.
