In the ever-evolving landscape of global commerce, online payments continue to shape the way we conduct transactions. Despite the resurgence of in-person shopping, the digital realm remains a powerhouse, with credit cards maintaining their dominance, as stated in the latest yStats.com report, Global Online Payment Methods 2023.
Drawing on this new data, let's delve into the trends and projections that define the current state of online payments and explore the preferences of shoppers worldwide.
The Dominance of Credit Cards
Credit cards lead online payments, with over a quarter of adults globally expressing a preference for this method. The usage of contactless cards is soaring, expected to nearly double in transaction value by 2027. The global B2C e-commerce payment value is anticipated to sustain double-digit growth through 2027, and credit cards continue to be the go-to choice for online shoppers.
Rise of Digital Wallets
While credit cards rank first, digital wallets are steadily climbing the ranks as the second most preferred online payment method. Projections indicate that digital wallet transactions will almost double, reaching over EUR 12 trillion by 2028. The seamless and secure nature of digital wallets positions them as formidable contenders in the online payment landscape.
Alternative Payment Options and the Future
The forecast paints a dynamic picture of the future, with virtual card transactions and Buy Now, Pay Later (BNPL) B2C E-Commerce sales set to quadruple between 2022 and 2027. Asia-Pacific leads in the adoption of digital payment methods, while Latin America sees credit cards dominating but with a rising interest in digital wallets and BNPL options. This signals potential growth in regions with slower adoption of alternative payment methods.
Real-Time Payments: A Global Phenomenon
Real-time payments are gaining global traction, positioned as a digital cash replacement. Latin America is expected to witness a quadruple increase in real-time payment transactions by 2027, reflecting a growing preference for this online payment type. The UAE and Egypt stand out with significant growth projections, while more developed markets like Asia-Pacific show a steady, albeit slower, adoption of real-time payments.
Global Digital Payments Market Outlook
In 2023, the global digital payments market, valued at trillions, is poised for substantial growth by 2030. Governments worldwide endorse digital payments for transparency, economic progress, and reduced cash reliance. Challenges such as internet gaps and security concerns persist, but the potential for enhanced transparency and economic growth highlights the positive trajectory of this evolving landscape.
5 Key Highlights and Projections
1. Global B2C e-commerce surge:
- Projected value exceeding EUR 7 trillion by 2027.
2. Contactless card transactions:
- Rapid ascent globally, expected to exceed EUR 9 trillion by 2027.
3. Digital wallet transactions:
- Set to nearly double, reaching more than EUR 12 trillion by 2028.
4. BNPL growth:
- B2C E-Commerce sales forecasted to reach approximately EUR 400 billion by 2027.
- Global BNPL users expected to surpass 900 million by 2027.
5. Security and transparency:
- Evolving consumer sentiments regarding the security of digital payment methods.
Conclusion
As we navigate the dynamic landscape of global online payments, it's evident that the future is digital. With credit cards reigning supreme, digital wallets on the rise, and real-time payments gaining momentum, the online payment ecosystem is set for remarkable growth.
About yStats.com
Recognized as the go-to primary destination for ecommerce and payments market data, yStats.com is a leading secondary market research and business intelligence firm specializing in global B2B and B2C E-commerce, payments, and fintech trends. Established in 2005 by Yücel Yelken, the firm provides comprehensive market reports and analyses. yStats.com offers indispensable insights, forecasts, and statistical data, primarily through comprehensive market reports. Trusted by multinational enterprises including Fortune 500 corporations, investors, and organizations, its reports have been featured by Forbes, The Wall Street Journal, and the World Economic Forum.
