The Next Generation of Payments In-Store & Online.
Insights from Arthur Bedel.
The world of Payments keeps evolving. The Next-Gen payment methods are here 👇
Traditional payments methods still dominate the consumer payments landscape, survey from Accenture i.e cash, debit and credit cards. However, next-generation offerings are rapidly gaining shares such as:
🔸Digital wallets
🔸Account-to-account (#A2A)
🔸Buy now, pay later (#BNPL) are rapidly
🔸Biometrics with Amazon One
🔸Soon, machine-to-machine and metaverse payments.
👉 In APAC, digital wallets like Alipay and WeChat Pay and UPI by National Payments Corporation Of India (NPCI) are the leading payment type over cash and cards.
👉 In LATAM, cash is still queen followed by cards, and local payment methods (PIX, OXXOPay...)
👉 In North America, debit cards take the crown followed by credit & wallets.
👉 In Europe, cash also dominates followed by cards and local payment methods (GIE Cartes Bancaires, PayPal...)
👉 In Africa, cash is leveraged heavily with e wallets & local payment methods, i.e. M-PESA Africa, growing rapidly.
This diversity of consumer preferences when it comes to payments is only beginning with Bank Transfers (UK 🇬🇧 - Faster Payments Scheme Limited, US 🇺🇸 - Pay By Bank with Nacha) A2A apps, BNPL and many other payment methods gaining strong momentum in various regions.
In order for merchants to connect with their consumers, accepting cash and cards is simply not enough anymore, especially in APAC 😉
In-store, 69% of consumers still prefer to use credit cards as forms of payment. Every payment method has its perks, and consumers start to understand more and more the ones they would rather use:
🔸Methods that reduce Interest - Debit Cards, Cash, BNPL and Prepaid Cards
🔸Methods that reduce interest and offer convenience and control - A2A Payments & Bank Transfer.
🔸Methods that offer convenience and control - Banking App, Digital Wallets, Check & Crypto.
Each one of those has a different appeal to different consumers. Delivering choice is more important than ever.
Next-gen payments are widely used across most regions for small #online purchases, especially in Europe and Asia- Pacific, where digital wallets account for 16% and 22% respectively.
In order to thoroughly understand consumer preferences and really provide a customized checkout experience, you need to take into consideration:
👉 Ticket Size
👉 Business Model
👉 Geography
👉 Demographics
👉 Reason for usage
👉 Financial Infrastructure
The world of payments is only getting more and more complex. A few companies are beginning to use payments more & more as a revenue driver and value generator and not only as a cost-reduction solution. Let's make that a majority soon 🚀
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#alternativepaymentmethods #apms #globalpayments #payments #technology
