According to the 10th edition of the Worldpay global payments report, the payment landscapes are fast changing, as what was referred to as alternative payments now account for most online spending globally.
As one of the most transformative innovations in technological history, the smartphone has reshaped global consumer payments. Whether shopping in-store, on the go, or from home, smartphones are now at the center of the new era of unified commerce.
Though early models of mobile phones existed in the 1990s, the launch of the iPhone in 2007 and Android in 2008 sparked an unprecedented wave of adoption. In 2007, global smartphone sales stood at 122 million units, according to Statista. By 2014, sales had surged to over 1.2 billion.
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However, the smartphone’s role as a dominant payment tool did not materialize overnight. In the early days of mobile e-commerce, users could browse products on their phones but had to finalize purchases on desktops or laptops. Over time, improvements in technology, increased network bandwidth, and mobile-optimized shopping experiences paved the way for the widespread use of smartphones in transactions.
Between 2014 and 2024, mobile’s share of global e-commerce tripled from 19% to 57%. By 2030, mobile is projected to account for nearly two-thirds (64%) of e-commerce across the 40 markets covered in the Global Payments Report 2025.
The impact of mobile payments on in-person shopping has been even more dramatic. Digital payments including account-to-account (A2A) transfers, buy now, pay later (BNPL) options, and mobile wallets— have seen rapid adoption. Their share of total point-of-sale (POS) value increased from just 3% in 2014 to 38% in 2024. By 2030, it is projected that 53% of in-person shopping value approximately $25 trillion will be transacted via mobile devices.
As smartphone manufacturers continue to open their systems to third-party payment providers, competition in mobile payments will drive further innovation. The smartphone will remain a dominant force in the payments landscape for years to come.
The Decline of Cash in A Digital World
The rise of digital payments has an inverse effect on the steady decline of cash. While demand for cash persists, its role in the global payments ecosystem is shrinking. A decade ago, cash accounted for 44% of global POS spending, representing slightly more than $16 trillion. Usage varied by region American consumers relied on cash for just 20% of POS transactions, while in the Middle East and Africa, it made up a staggering 82%.
Despite its widespread use, cash has been on a downward trajectory. Its share of global POS transaction value dropped from 44% in 2014 to 26% in 2019. The COVID-19 pandemic accelerated this trend, driving mass adoption of contactless and digital payments. By 2024, cash usage at the POS is estimated at just 15% of transaction value a one-third decline from 2014 and a $10.5 trillion reduction in value.
Several factors contributed to cash’s decline. It is prone to loss and theft, often inconvenient for large purchases, and costly to manage. Consumers have increasingly turned to faster, safer, and more efficient payment alternatives like cards, mobile wallets, and A2A transactions.
Despite its decline, cash still has strong defenders. Some consumers prefer its privacy and tangible nature for financial management. Merchants, especially small businesses, often favor cash to reduce payment processing fees. Governments, particularly in Europe, have introduced regulations to ensure cash remains available, recognizing its role in financial inclusion.
Notably, legislation mandating cash acceptance has been enacted in Denmark, France, and parts of the U.S. Governments across the globe are also exploring innovations like central bank digital currencies (CDCs) to modernize cash. While adoption of CBCs remains limited, they could serve as digital complements to physical cash rather than full replacements-at least until they can effectively function offline.
Looking Ahead
From online transactions to in-person purchases, digital payments continue to redefine commerce worldwide. As mobile payments dominate, and cash continues its decline, the global payments ecosystem is undergoing one of the most significant transformations in history.