Survey: One-third of consumers spend more when using digital wallets
Led by younger demographics, digital wallet usage is becoming more common among American consumers.
Almost two-thirds (63%) of Americans have used a mobile wallet to make a purchase, according to a new survey from LendingTree. This rises to 84% of Gen Zers (ages 18 to 28) and 81% of millennials (ages 29 to 44), compared versus 60% of Gen Xers (ages 45 to 60) and just 30% of baby boomers (ages 61 to 79).
Nearly four-in-10 (37%) mobile wallet users say they have stopped shopping somewhere because they didn’t accept digital payments. Additionally, one-third (33%) of mobile wallet users say they spend more when using mobile wallets, including 44% of parents with kids younger than 18, and 39% of millennials. Just 17% say they spend less when paying with mobile wallets.
When asked about the appeal of digital wallets over physical cards, 43% said they could check out more quickly, which was the top answer among every demographic. Other reasons include increased security (16%) and not liking carrying cards around (11%).
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Overall, most mobile wallet users don’t see them as significantly more secure than physical cards, according to the survey, as 43% believe they are more secure, but 50% say they are similarly secure to physical cards. Only 8% say digital wallets are less secure.
Roughly three-quarters (74%) of those surveyed say they use a physical debit or credit card most often when shopping in person, while only 13% prefer to use a mobile wallet. However, more people prefer mobile wallets over cash, which is the preferred payment method for 12% of Americans.
Among Gen Z digital wallet users, a quarter (25%) say they use a mobile device most often when shopping in person, while just 19% say a credit card is their top choice. The most popular option, a physical debit card, is preferred by 40% of Gen Zers.
LendingTree noted that 12% of people earning less than $30,000 prefer a mobile wallet, while just 10% say physical credit cards are the payment tool they prefer when shopping in person. Physical debit cards are the top choice for this income group, with more than half (52%) preferring them.
Looking ahead, nearly two-thirds (64%) of those surveyed said they still expect to carry a physical wallet or card in five years, while just 18% don’t and another 18% aren’t sure. Gen Z consumers are the most pessimistic about the future of physical cards and wallets, with 25% saying they don’t expect to carry them five years from now.
LendingTree commissioned QuestionPro to conduct an online survey of 2,015 U.S. consumers ages 18 to 79 from Nov. 5 - 10, 2025. The full results can be found here.
