Are Digital Wallets Ready to Take Over Bill Pay in 2026?

Digital wallets are everywhere, from everyday purchases to peer-to-peer payments. But are they truly ready to take over bill pay?

In this episode of Experience Better: The CX Podcast by KUBRA, guest host Cali Johnston, Senior Product Marketing Manager at KUBRA, brings you key insights from KUBRA’s latest digital wallets research, featuring expert perspectives from Yara Alatshan, Market Intelligence Lead, and Ashley Czajkowski, Enterprise Payments Strategy Manager at KUBRA, who explores what these trends mean for customer awareness, trust, and adoption.

Through curated clips from our recent webinar, we explore how consumer expectations are evolving, why digital wallets are becoming a must-have in bill payments, and what’s still standing in the way of widespread adoption. If you’re responsible for customer experience, this conversation will help you prepare for what’s next in bill pay and how digital wallets fit into a better, more seamless customer experience.

Listen to the full podcast episode or read the detailed transcript below.

Episode Transcript:

The transcript has been edited for clarity and readability while maintaining the original content and intent of the speakers.

Guest Host: Cali Johnston

Welcome to Experience Better, The CX Podcast by KUBRA. I'm Cali Johnston, Senior Product Marketing Manager here at KUBRA, and I'm really glad you're joining us for our first episode of 2026.

Today, we're sharing some of the most valuable insights from our latest webinar on digital wallets. We'll explore how consumers are actually using digital wallets today, where adoption is really gaining traction for bill payments, and what's still creating friction. We'll look at how everyday wallet usage is shaping customer expectations around bill pay, why awareness and trust remain critical factors, and what organizations need to understand as we move through 2026.

Throughout the episode, you'll hear from two experts. First is Yara Alatshan, our Market Intelligence Lead, who led the research behind these insights. You'll also hear from Ashley Czajkowski, our Enterprise Payments Strategy Manager, who helps us understand what this means for adoption, awareness, and building long-term customer trust.

Let's start by taking a step back and looking at the bigger picture—how the payment landscape is evolving and why digital wallets have become essential. Here's Yara.

The Evolution of Digital Wallets in the Payments Landscape

Yara Alatshan:

The fact is, the payment space is evolving rapidly with a lot of emerging payment trends, from real-time payments, stablecoins, to buy now pay later, open banking, and even AI. For now, digital wallets are the staple, and they are the default that customers expect.

Think of it as credit cards. They became table stakes. And same for digital wallets, they are moving from nice to have to must have.

So if you don't currently offer digital wallets, if you don't plan to offer them soon, you risk falling behind on customer satisfaction and customer experiences.

I really like the statement that the only thing advancing faster than technology is consumer expectations. We no longer tell customers or ask customers to pay a certain way or to use a certain payment channel. These days, they tell us what they want, and we have to meet them where they are.

Cali:

What Yara really sets up here is an important reality for billers today. Payments aren’t just transactional anymore, they are experiential.

Customers aren’t comparing your payment experience to other utilities or service providers.
They’re comparing it to the best digital experiences they have anywhere.

And one of the clearest signals of that shift shows up in how people already use digital wallets in their everyday lives.

Everyday Digital Wallet Use vs. Bill Payment Adoption

Yara:

Our research says that digital wallets have reached maturity for everyday purchases. In 2025, 61% of consumers have used digital wallets to pay for their everyday purchases. That shows that digital wallets have gone mainstream.

But if we compare this number with the 2022 number, we see a slight decline, 65% versus 61%. Together, these numbers show that digital wallet adoption has started to level off.

We also wanted to learn how often consumers use digital wallets for everyday purchases. It turned out that 53% use digital wallets from daily to a few times a week. Another 18% use them weekly.

For example, I cannot imagine leaving my house without my phone. Of course, I need it to stay connected with my family members and friends. But if I do not have my phone, I cannot pay for any of my purchases. I use digital wallets every day. I no longer carry cash.

Cali:

Yara’s data makes it clear that digital wallets are already a big part of everyday life. They’re familiar, they’re easy to use, and personally for me they are usually the fastest way to pay.

But where does bill pay come in? Paying a bill is a different experience from grabbing a coffee or tapping your phone at checkout. Bills feel more personal. They feel higher stakes.

And that’s where things start to get interesting, because even though people are comfortable using digital wallets, adopting them for bill payments has taken a slightly different path.

Yara:

In 2025, 42% used digital wallets for bill payments. If we compare this number to 2022, we see that digital wallet adoption for bill payments grew five points in the last three years.

However, when comparing the adoption of digital wallets for bill payments with everyday purchases, we see a significant gap, 42% versus 61%. To some extent, this gap is expected.

That is because when we first started using digital wallets, it was back in 2019 when COVID first started. When we went grocery shopping during the COVID days, we wanted to limit our interaction with cash, POS terminals, or even other people. So we started using digital wallets and discovered how convenient they are, then decided to carry on with the same convenience for other payments, including bill payments.

That is why I am saying the gap is expected. But I also anticipate that this gap should start getting smaller and smaller.

We also wanted to learn, among those who use digital wallets for bill payments, how their usage has changed compared to last year. 63% said their usage has increased. Again, this shows that customers are becoming more and more comfortable using digital wallets for bill payments, and it is even becoming a habit for them.

27% stayed about the same, and 10% said their usage has reduced, indicating a very minimal drop-off.

Cali:

That is quite a gap between people who use digital wallets for every day purchase vs. bill payments. But as Yara explains it, it makes a lot of sense. Bill payments come with different expectations around trust, security, and reliability.
But as customers grow more comfortable using digital wallets across more parts of their lives, those expectations should begin to shift. But what types of bills are consumers using digital wallets for most? Yara has the data on that as well. 

Consumer Preferences and the Rise of Multi-Wallet Behavior

Yara:

What types of bills customers pay with digital wallets? It turned out that utility bills lead the way at 62%, followed by phone and Internet bills at 59%.

Customers love using digital wallets for monthly bills that they cannot afford to miss. But monthly bills are not the only bills. Another segment uses digital wallets for insurance payments, tax payments, and even parking tickets.

I want to highlight utility bills here because the number really stood out compared to 2022. Adoption increased from 25% to 62%.

The takeaway is that we need to stay ahead of digital wallet demand. If you do not currently offer digital wallets, it is time to do so very soon, because customers expect it. It is becoming the default for bill payments.

Cali:

This is an important signal for organizations that handle essential, recurring bills. People are starting to use digital wallets for payments that really matter to them, the ones they don’t want to forget or fall behind on. That tells us convenience and confidence are playing a bigger role. But just offering digital wallets isn’t the whole story. The next question is which wallets people actually want to use, and how many options really make sense.

Yara:

This puts Apple Pay and PayPal in a very close position as the leading digital wallets for bill payments. Venmo and Google Pay come next at 39%, followed by Amazon Pay at 26%. There is also a newer digital wallet called Paze, where a very small percentage use it for bill payments, and we are keeping an eye on it to see if more customers start using it.

Some of you might think that since PayPal and Apple Pay are the most preferred, it is enough to add just these wallets. Unfortunately, that is not exactly the case, because nearly 6 out of 10 consumers now use more than one digital wallet for bill payments. This is a sign that wallets have become part of our daily lives.

For example, I use Apple Pay for some of my bills and PayPal for others. The other day, I was chatting with my friend, and she told me that she uses Google Pay and PayPal. This is a small example showing that different customers use different digital wallets, and even the same customer may use more than one digital wallet.

Cali:

What Yara points out here is that there really isn’t one single wallet that works for everyone. People tend to mix and match based on what they’re used to or what feels easiest in the moment. So when only a limited set of wallet options is available, it can actually create friction, even if digital wallets are technically offered. And even when the right options are in place, there’s still another challenge that often gets overlooked. Ashley digs into that next.

The Awareness Gap Slowing Digital Wallet Adoption

Ashley Czajkowski:

In general, our data showed a major awareness gap. We will take a closer look on the next slide.

We found that more than 75% of customers are either unaware or misinformed about digital wallet availability, assuming that the merchant they are paying is offering them. You might assume that most customers would know by now that digital wallets are an option available to them. After all, they are pretty much everywhere nowadays, in retail, on your phone, even on your watches.

But when we asked, respondents told a very different story. There is a substantial gap. To take a closer look at the numbers, when we asked customers if their utility offered digital wallets as a form of payment, only about 25% said yes. Another 25% said no, but the majority, over 50%, said that they did not know.

This tells us something important. The barrier to digital wallet adoption is not solely about whether the wallet itself is available, but whether customers realize that it is. The message is straightforward. If customers do not know that a feature exists, they cannot use it. Awareness is just as important as access.

We need to educate consumers that not only do digital wallets exist as a payment option, but that they are secure and easy to use. There are two main takeaways from this section. Convenience and security are going to drive adoption. These are the messages that resonate with consumers.

Awareness and education are both critical factors because customers are not going to use what they do not understand. Education is what helps transform uncertainty into trust. Think of every bill insert, email, or mobile notification as a touchpoint to reinforce awareness and build confidence around digital wallets.

Cali:

What Ashley really highlights here is that education doesn’t have to mean overwhelming customers with technical details. It’s about reinforcing a few simple ideas. Digital wallets are easy to use, they’re secure, and they fit naturally into how people already live and pay. When those messages are clear and consistent, a lot of that uncertainty starts to fade. 

So you’ve heard a lot of data points today. But how does this show up in the real world? 

What Digital Wallets Mean for Customer Experience in 2026

Ashley:

As you hear all of this, you may be wondering what is in this for me, how this applies to me, and how this helps my organization.

From a consumer perspective, digital wallets bring real benefits. They help people make payments on time, which reduces missed payments and ultimately late fees. We have already seen this trend within our client base among those who have implemented digital wallets.

Additionally, consumers have said that their overall satisfaction would improve if they had a digital wallet offering. Consumers perceive utilities that offer digital wallets as more innovative and forward-thinking, and almost 20% say that it increases their trust and confidence. This is not just a payment feature. It is a way to improve customer relationships.

I will leave you with a few final thoughts. If there is one thing to remember, it is this: make digital wallets available and make sure customers know about them. Offer multiple wallet options like Apple Pay, Google Pay, and PayPal to meet customer preferences, and use simple, clear marketing to show how they work and how secure they are.

Adoption begins with awareness, and awareness begins with communication.

Cali:

As you heard throughout today’s episode, digital wallets are about much more than just payments. They’re about reducing friction, building confidence, and meeting customers where they already are. And as we look ahead to 2026, the organizations that really stand out will be the ones that treat payments as part of the overall customer experience, offer choice and flexibility, and make adoption easy through clear, thoughtful communication.

If you’d like to dig deeper into the research behind today’s conversation, I encourage you to check out the full webinar recording and our Digital Wallets Research that you can find in the resources section of KUBRA.com 

Thanks for listening to Experience Better, the CX Podcast by KUBRA. I’m Cali Johnston, and we’ll see you next time.