A new PYMNTS Intelligence report, “Apple Pay @11: Usage Is Up, but Competitors Are Gaining Ground,” reveals that while mobile wallet use is rising, it’s benefiting rivals more than it is consolidating Apple Pay’s dominance. Although Apple Pay continues to grow, its overall penetration remains modest compared to its competitors.
The survey, which included responses from 3,339 U.S. consumers between mid-August and late September 2025, shows a significant increase in mobile wallet use—weekly in-store usage more than doubled year over year. However, Apple Pay’s share of eligible in-store transactions only rose slightly, from 8.9% to 10.2%. Its annual in-store sales volume grew to an estimated $450 billion, up from $268 billion in 2024.
This expansion, while notable, reflects a broader trend across digital wallets, not a unique acceleration for Apple Pay. Competitors such as Google Pay, PayPal, and Cash App also saw dramatic increases in user adoption, with their user counts nearly doubling and narrowing the adoption gap.
Key Findings:
- Mobile Wallet Usage Surge: 31% of consumers are now using mobile wallets in stores, up from 14% a year ago. The greatest growth was seen among Millennials, with nearly 50% using a mobile wallet in the past week, a 112% increase year over year. Baby boomers remain the smallest user group, at 7.9%, though their adoption grew 147%.
- Apple Pay Usage: Despite 85% merchant acceptance and nearly 60% of consumers owning an iPhone, Apple Pay accounts for just 10.2% of eligible in-store transactions. While Apple Pay still leads in the number of people who have tried it, the gap is closing as consumers experiment with multiple wallets.
- Competition Grows: Google Pay more than doubled in usage, and PayPal and Cash App nearly doubled as well. The lead Apple Pay once had in terms of first-time users is shrinking as consumers sample more wallets.
- Mobile Wallet Motivation: Ease of use is the top reason for Gen Z consumers, while security is the key motivator for older users. High-income consumers tend to experiment with mobile wallets out of interest in new technology.
- Shift Toward Digital Balances: More users are making payments through stored digital cash balances, which have risen from 1.0% to 3.7% of in-store transactions between 2023 and 2025. While debit and credit cards still dominate, mobile wallets are starting to create their own payment ecosystem rather than simply routing card payments.
- Cash to Card Shift: Debit and credit card usage has remained steady, suggesting that mobile wallets are gaining market share from cash rather than from card payments.
As mobile wallet adoption continues to climb, it’s clear that the market is increasingly crowded, with multiple players vying for dominance. Apple Pay is growing, but so are its competitors, and the momentum is shared rather than monopolized.