In Finland, Danske Bank's Mobilepay app is widely used for p2p and online payments, but not so much for businesses, with the exception of tiny ones like pop-up stores. And I think they just raised their rates.
Online ID by banking app is pervasive, but doesn't require a smartphone if you bother your bank about it. If requested, Nordea gives you a Gemalto keypad and Danske Bank a small authenticator fob. I'm sure other banks have something similar, I'm just familiar with these two.
I agree that this is an important issue. Your smartphone is effectively your primary ID online now and can also be used to track you as you carry it around. And more and more commerce and official matters are now primarily handled online. Constant small steps towards a cashless society, with potential for control via CBDCs and/or social credit scores.