The “now” economy dictates these rules. Consumers are searching for real-time services, instant purchases, same-day deliveries, and tapping. Visa has come up with contactless transactions statistics that prove the assertion: Over 40% of the in-store Visa payments are made by tapping.
Research and Markets have recently spread the news about an alternative online payment solutions takeover. Following their significant findings, tap-to-go mobile wallets may override credit card payments and account for half of the ecommerce sales.
China’s mobile wallets will also expand its reach. Alipay has obtained an e-money license issued by the EU and will benefit from PSD2 access policies to provide services to the European market. This consumer-centered protocol aims to foster a quicker embracement of online payment processing solutions that will support instant transactions and have more consumer-focused features: voice, face, and movement recognition, real-time cross-border payments, AI-protected online payment software solutions, etc.
Payments in North America
In North America, the pace of progress in online payment processing solutions will slow down, as the World Payments Report 2018 by BNP Paribas assumes. This will mainly be caused by long-established technology infrastructures and habits. The market will be reliant on check payments, credit, and debit cards.
Here, card payments constitute almost half of ecommerce transactions. Even though cash remains dominant at points of sale, its use is decreasing. Growing concerns over fraud and online payment convenience are why North American consumers avoid shopping online. However, Worldpay predicts a considerable increase in the use of mobile wallets.
Payments in Latin America
Latin America has been enduring hard times. However, its economic conditions are slowly improving, giving hope that non-cash payment methods will thrive. In the ecommerce sector, installment purchases and POS cash payments prevail, while credit card accounts amount to 44.6%, according to the Worldpay research.
Meanwhile, GSMA, a platform uniting more than 750 operators, has unveiled a mobile phone penetration rate across Latin America. That rate amounted to 67% (436 million subscribers) in 2017 and is projected to reach 74% by 2025 (517 million subscribers). That said, mobile wallets use is forecast to go up, from 15% in 2018 to 18% in 2022. Here are the important Worldpay findings.
Payments in EMEA
The EMEA ecommerce payment landscape is broken evenly into mobile wallets, credit, and debit cards, with cash and card payments dominating at a point of sale. Once PSD2 comes into full force, innovative non-cash payment processing solutions will win a bigger audience.
Thus, Worldpay envisions that ewallets, debit cards, and bank transfers will predominate in this region with cash POS payments decreasing, from 47% in 2018 to 30% in 2022.
Payments in the Asia Pacific Region
Asia Pacific is one of the most promising regions in terms of digital payments and innovative payment processing solutions. Its ecommerce industry shows exponential growth. Statista’s forecast says that e-retail sales totaled $877.6 billion in 2015 and are going to exceed $2.3 trillion by the end of 2019.
Because of the tremendous increase in mobile use, the top Asia Pacific payment methods include ewallets, cards, and bank transfers. Here are the Worldpay stats.