Consumers have more payment options than ever before, and it is the choices they make that drive the payment landscape.
Comerica Merchant Services can access the research from Worldpay Global Payments Report to provide insights into payment trends for its customers.
While used by multinational corporations to predict payment trends in major markets the world over, the Worldpay Global Payments Report, now in its ninth year, can also shed valuable light on consumer shopping patterns and preferences, both in-store and online, which can help guide you to adopt the fintech tools to capture more customer visits and more sales.
1. Digital wallets are the people’s payment choice.
Digital wallets are dominating the payment landscape as consumers around the world are choosing them above all other payment methods, online and at the POS. And with total global transaction value predicted to exceed $25 trillion by 2027, you may be disappointing your customers, and missing out on sales, if you’re not accepting digital wallet payments. Make the most of this trend by including a digital wallet solution in your portfolio of business banking solutions.
2. Credit and debit cards continue to be strong inside and outside digital wallets.
Consumers are still heavily using their credit and debit cards; they’re just using them differently. Today, cards are powering the payments behind “pass-through” digital wallets like Apple Pay® and PayPal®, so if you don’t accept payment from these types of apps, you may be left behind. At the same time, card transaction value continues to rise even in highly penetrated card markets like the U.S., so be sure you’re offering technology that accepts contactless payment and chip cards to make checkout safer, faster, and more convenient for your customers.
3. Global e-com growth outpaces POS by more than 2 to 1.
It’s hardly a secret that people like to shop online, but the rate of growth continues to be surprising. In 2023, e-commerce reached 14.4% globally as a percentage of all commerce, and it’s predicted to continue growing, with e-commerce forecasted to rise 7% in North America in the years ahead.
Your business needs the latest “Cart” technology to process online orders quickly and securely from their websites. You also need guidance as you think beyond your website, exploring global online marketplaces like Etsy or social media sites that can help increase your online footprint, drive awareness, and generate additional sales and profits for your business.
4. Prepaid cards will surpass $1 trillion in 2024.
Prepaid cards may sound like old tech, especially given the popularity of digital wallets, but they are still widely in use as gift cards, general purpose reloadable cards, and payroll or government-benefit distribution methods. Ensure you get a piece of these transactions, forecasted to be worth $1 trillion in global transaction value this year.
5. Cash remains relevant amid economic uncertainty.
Cash may not be “king” anymore, but it is still in high use, especially among unbanked and lower income consumers, but also among consumers at all income levels who are using cash as a budgeting tool amid high inflation. As your customers continue to pay with cash, be sure to have a payments solution that can track cash payments, right alongside digital, card, and other payments, so you have all your financial data in one place for more complete and insightful business reporting.
Contact us today to learn more about the modern payment options you should consider for your business. Visit a banking center location near you to get started.
Source: 2022 FIS Future of Payments
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Merchant Services are offered through Comerica Bank. Ancillary services are offered through Worldpay, LLC or other service providers and may require a separate agreement with those providers.
