Generation Mobile: Even Boomers Are Shifting Away From Plastic Cards

Forget your plastic cards for a moment. A quiet revolution is happening in how we pay for everything from dinner to electronics, and it’s being led by the smartphone in your pocket.

A forthcoming report from PYMNTS Intelligence, “How the World Does Digital,” the latest installment in the series, reveals that mobile wallets, like Apple Pay, PayPal and Google Pay, are rapidly shifting consumers from traditional plastic to mobile interfaces for both online and in-store transactions.

But this change isn’t necessarily about ditching your trusted credit or debit card; instead, it’s about accessing them in a faster, more secure way. Mobile wallets, which live on your smartphone or connected device, essentially store and “tokenize” your existing credit, debit and bank account credentials by replacing their sensitive financial and personal information with unique symbols (“tokens”) accessible only by the card owner. Presto: A card’s essential information and data is preserved, and its security is enhanced.

The funding sources — credit or debit cards or bank accounts — remain the same, but the interaction has changed. Think of tapping your smartphone or using it to scan a QR code instead of whipping out the plastic in your wallet.

Across 11 countries surveyed by PYMNTS Intelligence that represent half of global GDP, mobile wallets powered 35% of online transactions and 21% of in-store transactions last year. That marks major growth since 2022, with in-store usage rising by 10.9% and online usage by 5.2%.

While not yet the dominant payment method, the momentum of mobile wallets signals that embracing mobile-first behaviors is now essential for businesses.

Why the change? Consumers increasingly value mobile wallets for their faster checkout experiences, biometric security and embedded rewards.

But the picture isn’t uniform globally. Adoption patterns remain highly local. Markets like Japan and Singapore are leading the charge, accelerated by factors like real-time payment systems and widespread QR code integration. Japan, for instance, saw a 20 percentage point increase in in-store usage since 2022, largely thanks to QR codes and super apps. Singapore’s strong digital trust and early mobile banking adoption also played a role.

In contrast, countries like France and the United States show lower wallet usage due partly to entrenched plastic card habits. In the U.S., large retailers like Amazon and Walmart prioritizing their wallets also depresses broader digital wallet adoption.

Brazil presents another unique case, where the shift isn’t solely wallet-driven but also includes explosive growth in account-to-account solutions like Pix, showing the power of real-time, low-cost payment alternatives.

It’s also not just about geography; generational shifts are also at play, though perhaps not in the way you might think. While Gen Z leads the mobile wallet trend, showing a 23% increase in in-store wallet usage since 2022, mobile-first payments are gaining traction across millennials, Gen X and even baby boomers.

Interestingly, the report finds that income and geographic location (urban vs. rural) are less relevant than previously believed in driving mobile wallet adoption. Surprisingly, low-income consumers have increased their in-store mobile wallet usage more than higher-income groups, suggesting that the wallets are becoming essential, low-cost tools for everyday spending for everyone, everywhere.

These are among the many insights in the report, which introduces a persona analysis that segments global consumers by their payment behaviors and motivations.

Key Takeaways:

• Mobile wallets are allowing consumers to access familiar credit and debit cards more quickly and securely via smartphones, rather than making plastic obsolete.
• Local behaviors, existing habits, and delivered consumer value (like rewards or simplicity) are bigger drivers of mobile wallet adoption than just technology or infrastructure. Winning requires tailoring strategies to regional preferences and focusing on user personas rather than just demographics.
• Mobile wallet adoption is expanding across all generations, not just Gen Z, and is proving to be less dependent on income or geographic location than previously thought, becoming a broadly accessible tool for everyday spending.

Read more:

Report Shows 70% of US P2P Payments Are Mobile

US In-Store Mobile Wallet Use Sees 4.3% Increase Since 2022

How The World Does Digital: A Global Benchmark Of Consumer Digital Transformation

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