UPay’s 2025 Global Digital Payments Report provides a concise summary of virtual card and digital wallet use. It also offers a prescription for future growth.
Digital wallet spending growth over the past decade is essentially tenfold, growing from $1.6 trillion in 2014 to $15.7 trillion in 2024. It will nearly double again by 2030, when it’s projected to exceed $28 trillion, more than America’s 2023 GDP.
The related use of virtual cards currently sits at $5.4 trillion; it will nearly triple to $14.3 trillion by 2030. Credit smartphones, fintech innovation and real-time payment system growth for the gains. They’ve helped push digital payments to two-thirds of global e-commerce value in 2024.
“A significant observation is the symbiotic relationship between digital wallets and traditional card networks; a majority of digital wallets globally are funded by cards, indicating that wallets often serve as an enhanced interface for existing card infrastructure rather than a complete displacement,” the UPay report states.
Virtual cards are gaining popularity with businesses and consumers, thanks to better security features and expense management.
Digital payments’ share of global e-commerce value essentially doubled from 34% in 2014 to 66% in 2024. That growth is projected to reach 79% by 2030. In 2014, 3% of global in-person shopping was conducted via digital payments. Upay found that it grew to 32% in 2024 and will reach 45$ by 2030.
Cards will remain a key commerce feature for the time being. Around 56% of digital wallets worldwide are funded by cards.
“This substantial reliance on cards indicates that digital wallets, rather than entirely displacing traditional card networks, often function as a sophisticated interface or ‘wrapper’ for card-based transactions,” UPay states. “They enhance the convenience and security for existing card users by leveraging tokenization and other digital features, thereby driving card usage through a new, more advanced channel.”
“This dynamic underscores a symbiotic relationship where digital wallets transform how cards are used, ensuring the continued relevance of card networks in the evolving payment landscape.”
Key growth drivers for virtual cards include increased online transactions, B2B automation and expense management, and superior fraud protection.
The latter is achieved by a system generating unique, often single-use card numbers with defined spending limits and expiration dates. It’s further enhanced through dynamic CVV/CVC technology that changes security codes regularly.
Advantages of virtual cards over traditional physical cards include enhanced security, improved control and oversight, streamlined expense management, instant issuance, and subscription management. Limitations include issues with in-person transactions and processing returns, and limited cross-border acceptance networks.
Institutions and issuers should prioritize digital-first issuance, invest in ecosystem strategies, diversify wallet funding operations, and leverage data for personalization. Merchants and businesses should optimize for digital wallet acceptance, adopt virtual cards for expense management, and prioritize security. Consumers should embrace digital wallets and utilize virtual cards for online security.