Digital Wallets have been gaining momentum over the last few years. Currently, 33% of respondents say they used a digital wallet online or in-store over the last 90 days – 15% of which (or almost half this group) used them weekly or more frequently.
There are two types of digital wallets, open loop and closed loop. Open loop wallets can be used at different merchants while closed loop wallets are generally restricted to a specific merchant.
Apple Pay (50%) and PayPal (45%) are the most used open loop digital wallets, and the top used overall. Both have built loyal followings – Apple because of easy integration with iPhones and PayPal from being one of the first leaders in online payments.
Among closed loop wallets, Starbucks (19%) holds a commanding lead. In fact, its the third most used wallet overall. Their strong following is based on a value proposition for customers consisting of integrated payments and loyalty rewards that goes beyond what an open loop wallet can currently offer.