Use of digital wallets for e-commerce purchases to rise at 12% CAGR until 2026

China leads digital payments in APAC.

Payments for e-commerce purchases using digital wallets will increase at a compound annual growth rate of 12% until 2026, increasing its share in total transactions to 54%.

In The 2023 Global Retail Development Index, Kearney noted that in Asia Pacific, China will lead the growth in the use of digital wallets, followed by developing countries.

Kearney added that the popularity of buy now, pay later (BNPL) for e-commerce spending, is led by platforms such as Alibaba, JD, and Flipkart.

ALSO READ: BNPL poised to be the most preferred payment method in Southeast Asia: report

Globally, BNPL accounted for 5% of the e-commerce transactions in 2022.

Specifically, it is the fastest-growing digital payment method in the Middle East and Africa. It is expected to rise at 43% CAGR through 2026 in the region.