The rapidly expanding markets of China and India also contribute much to the mass adoption of contactless transactions. As eMarketer puts it, China tops the list of online payment solutions users. In 2019, 81.4% of Chinese people are forecast to use proximity mobile payment apps (mobile transactions made via the Near Field Communication (NFC) technology at a point of sale) with a maximum number of consumers coming through Alipay and WeChat Pay, built into the WeChat messenger.
India keeps up the pace as the quickest mobile payment adopter. eMarketer claims the number of Indian mobile users increased by 26.4% in 2018, as compared to the previous year. Together, China and India make up two-thirds of all the mobile payment app users. This is primarily because of the colossal improvements made in technologies like sound wave, NFC, QR, and RFID, as well as an enhanced internet connection.
Open banking is another huge change driver, pushing forward contactless transactions. The 2nd Payment Services Directive (PSD2) allows consumers to share access to their financial data with third parties to get loans or other services.
So, how does the payment ecosystem look from a global perspective? What types of online payment solutions are being used and what functionality has been popular with merchants and buyers? These are some of our findings.