Once they used to last several years. Then maybe six months; several months; now, if a trend lasts a month, it’s almost considered an eternity.
When it comes to global payments, one always needs to keep the proverbial ‘eye on the ball,’ as not only is it beneficial to one’s business to be always up-to-date with what’s going on, it could also mean a big difference between your business staying in the thick of things, or lagging quickly behind. And in this day and age, it’s something few companies can afford.
So....what are the trends to watch in the world of global payments?
Global Payments will continue to move away from cash to other forms of payments:
As electronic, or wireless payment methods become more popular, the use of actual cash will shrink. In fact, recent studies showed that Global cash transactions dropped from 89% to %77 over a five-year period.
Digital wallets and mobile payments are becoming mainstream
According to financial services leaders FIS, by 2023 half the global eCommerce sales will be via digital wallets and is estimated to reach about $5.9 trillion at that time. And smartphones will be the payment method of choice for consumers, helped in no small part by Apple Pay, the company’s own digital wallet & mobile payment solution. With so manyiPhones users out there, the list of merchants accepting this method continues to grow. On the Android side, users have Google Pay. These options give users a convenient, simplified payment solution, practically atthe touch of a button – and without forcing them to type their credit card info onto a website.
According to Business Insider, mCommerce is expected to take a 45% share of the entire eCommerce market by 2020. And with millennials being accustomed to paying with their phones, the number could only get higher.
The rise of BNPL (Buy Now, Pay Later) services
BNPL gives consumers the option of delaying the payment of goods or services, for a period of 14 days, 30 days, or even up to 12 months. Another option is to divide the payment into small installments over several months. What makes this option even more attractive to buyers is that many retailers/services won’t charge interest in the ‘later’ period. Of course,one must keep track of the payment schedule so as not to start lagging behind and fall into late fee penalties. ‘Thanks’ in part to Covid-19, the popularity of BNPL has risen.
Did you know you can buy a car with Bitcoin? Or order Domino’s Pizza? Without getting too deep into the crypto subject, Bitcoin has also made its name as a popular secure global payment transfer solution, as well as the local payment method at car dealerships, stores, airlines, gas stations, banks (the irony), and more. Like most cryptocurrencies, Bitcoin requires its own digital wallet. Like other crypto coins, the advantage of using Bitcoin when transferring money is no bank account or balance fees, noextra charges, or other payments.
These are the top four trends in the world of global payments. As mentioned at the start, what’s hot today could be cold next week,so come back to our blog to be updated on the next big thing(s) in the world of global payments.