Has the Age of Digital Wallets Arrived?
Zelle is on fire. The easy-to-use digital wallet (consumers just need an email address or U.S. mobile number to send money to friends and family) just posted a record-breaking $1 trillion in transactions for 2024. The payments platform also said its user base increased 12 percent for the year to 151 million accounts, while total dollars sent on the app rose 27 percent year-over-year.
Apparently the age of digital wallets is here as consumers shift from cash, checks and other payment methods.
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Michael Hershfield, chief executive officer and founder of payments and loyalty platform Accrue, said Zelle’s milestone is just the tip of the iceberg. Hershfield described Zelle’s surpassing $1 trillion in payments as “a game-changer and highlights just how quickly consumer payment preferences are shifting.”
“Digital wallets are undeniably leading the charge, with consumers now expecting lightning-fast, frictionless payments at every touch point — whether shopping online or swiping at checkout in-store,” the CEO added.
Hershfield is bullish on his outlook for the growth of this form of payment and said by 2027, “I’m confident digital wallets will surpass 5.3 billion users and capture over 50 percent of global commerce. The U.S. is already seeing significant uptake in alternative payment methods like Zelle and Affirm, signaling that consumers are ready to embrace new ways of paying — especially when these solutions offer more convenience, security or innovation.”
The CEO said evolving consumer preferences are helping to drive digital wallet adoption — even beyond younger generations. Hershfield said while Millennials and Generation Z have long been early adopters, “we’re now seeing Gen X emerge as the next major cohort embracing digital wallets. Initially driven by grocery shopping, Gen X is expanding their usage into new areas.”
Hershfield said in 2024, Gen X led all generations in mobile wallet usage for storing event tickets and boarding passes. “This signals a broader behavioral shift, proving that convenience and security are universal drivers for adoption,” he said.
Meanwhile, as more businesses jump on the digital wallet bandwagon, Hershfield said the incentives for consumers to use them will skyrocket. “The days of fumbling for cash or cards will soon feel like a distant memory, with digital wallets becoming the go-to, everyday method of managing money,” he said, adding that looking ahead, “I believe we’ll see a surge in wallet features that make transactions even smoother — not just for peer-to-peer payments but across all retail experiences, making digital wallets the backbone of global commerce.”
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