The way people pay is shifting at pace. While debit and credit cards remain widespread, digital wallets such as Apple Pay, Google Pay, and Samsung Pay are steadily moving into the lead. Analysts forecast that by 2028, over 60% of online transactions will be processed through digital wallets.
For businesses, this isn’t just a consumer trend — it’s a structural change to the way revenue flows. Shoppers are choosing speed, security, and simplicity. If your payment systems can’t deliver that, they’ll go elsewhere.
The Rise of Digital Wallets
Digital wallets sit at the intersection of convenience and security. They let customers store card details safely within a mobile app and approve payments in seconds using Face ID, fingerprint, or passcode. Each transaction generates a unique token, keeping sensitive card data out of circulation.
Adoption is surging across demographics. Smartphone penetration in the UK now stands at over 92%, and the proportion of adults using a mobile wallet has doubled in the past five years. What started as a Gen Z preference is now a mainstream behaviour across all age groups.
Traditional Payments Still Have a Role
Despite this surge, traditional methods still matter:
-
Cards remain globally accepted and familiar.
-
Bank transfers are trusted for high-value transactions, especially in B2B.
-
Direct Debit continues to power recurring payments for utilities, subscriptions, and finance.
But their weaknesses are more obvious than ever: manual entry errors, higher fraud exposure, slower settlement, and friction at checkout. Against that backdrop, wallets shine brighter.
Why Digital Wallets Are Winning
-
Speed & Conversion — two taps to pay cuts abandoned baskets.
-
Security & Fraud Reduction — tokenisation plus Strong Customer Authentication (SCA) protects both merchants and consumers.
-
Customer Loyalty — wallets are built into everyday behaviour; once a customer starts using them, they’re unlikely to switch back.
-
Operational Efficiency — fewer disputes and faster reconciliation reduce admin overhead.
For a business, the payoff is simple: higher revenue, fewer losses, and happier customers.
Accessibility: Balancing Progress and Inclusion
Wallets may be surging, but not everyone has a smartphone or feels confident using one. Older demographics and lower-income households risk being excluded if wallets become the only option.
The answer isn’t to abandon innovation but to provide choice. Customers should be able to pay by card, bank, or wallet — whichever feels right for them. Businesses that offer all three build trust and capture a wider market.
How SOTpay Supports Every Channel
This is where SOTpay provides an edge. It gives you one secure platform to manage payments across every modern and traditional method:
-
Apple Pay, Google Pay, and Samsung Pay integrated seamlessly.
-
Cards and Open Banking supported in the same flow.
-
Omnichannel reach via SMS, WhatsApp, email, live chat, and social media.
-
PCI DSS compliance simplified by keeping sensitive data outside your systems.
-
Fraud protection built-in with tokenisation, SCA, and liability shift to issuers.
With subscription pricing starting from £9.99 per month and transaction fees from 10p, SOTpay makes enterprise-grade payment security affordable for businesses of every size.
Conclusion
Digital wallets aren’t just a trend; they’re becoming the default way to pay. By the end of the decade, analysts expect them to dominate both online and in-store transactions. Businesses that integrate them now will benefit from stronger customer trust, faster payments, and lower fraud costs.
With SOTpay, you don’t have to gamble on the future. You can offer wallets, cards, and Open Banking in one secure, flexible platform.
Book a free demo today and see how SOTpay helps you stay ahead of the next payment revolution.
