Mobile wallet usage is surging, but a new report reveals that Apple Pay‘s dominance in the space is being challenged by its competitors. According to the PYMNTS Intelligence report titled “Apple Pay @11: Usage Is Up, but Competitors Are Gaining Ground”, while overall mobile wallet use has grown significantly, Apple Pay’s market share is expanding at a much slower rate than expected, allowing rivals to narrow the gap.
The report, based on a survey of 3,339 U.S. consumers conducted between mid-August and late September 2025, highlights a strong year-over-year rise in mobile wallet use, with weekly in-store mobile wallet transactions more than doubling. Despite this, Apple Pay’s share of eligible in-store transactions rose only modestly to 10.2% from 8.9% the previous year, while its annual in-store sales volume increased to $450 billion from $268 billion in 2024.
However, these increases are part of a broader trend in the digital wallet space rather than a breakthrough solely for Apple Pay. Competitors such as Google Pay, PayPal, and Cash App have seen similar growth, with their user bases nearly doubling, further eroding Apple Pay’s once-dominant position.
Key findings from the report include:
- Mobile wallet adoption surged to 31% of consumers, up from 14% a year earlier. Millennials led the growth, with nearly half using mobile wallets weekly, a 112% increase. Baby boomers, though the smallest user group at 7.9%, saw their usage grow by 147%.
- Despite 85% of merchants accepting Apple Pay and nearly 60% of consumers owning an iPhone, Apple Pay accounted for only 10.2% of eligible in-store purchases, indicating that growth remains slow but steady.
- Competitors like Google Pay, PayPal, and Cash App saw faster growth in user adoption, with Google Pay usage more than doubling. Although Apple Pay still leads in overall adoption, it is losing ground as more consumers experiment with other wallets.
- Ease of use was the primary factor driving adoption, particularly for Gen Z, who value speed at checkout. Older consumers prioritized security, while high-income users were more likely to try mobile wallets for the technology’s novelty.
An interesting trend noted in the report is the increasing use of stored digital cash balances for mobile wallet transactions, which grew from 1.0% to 3.7% of in-store transactions from 2023 to 2025. Debit and credit cards remain dominant, but this shift towards digital balances indicates that wallet ecosystems are developing their own payment forms, rather than simply routing traditional card transactions.
As mobile wallet usage continues to rise, the picture emerging is one of a competitive market where no single player is dominating. Apple Pay is still growing, but so are its competitors, and the momentum in the market is becoming more widely shared.
