While we more often cover the wealthtech and digital assets sector, we feel it’s still important to keep a pulse on what is happening in payments, too. We though the following post from OnBuy.com was quite interesting as it analyzes recent research on current payment methods with an infographic on US trends. I know I am using eWallets more and more, and I am CERTAIN the readers of FintekNews are as well.
“Digital payment methods are evolving the way we exchange money, offering seamless convenience; in combination with the growing intense popularity of online shopping which is naturally demanding ease and security. Mobile applications are increasingly integrating payments into our daily lifestyle and routines, allowing all transactions to be speedy and effortless.
The rapid proliferation of smart phones paired with new mobile-banking services has enabled digital payments to really take off. With the likes of Uber making mundane tasks such as ordering a taxi simple, fast and efficient – all at the click of a button.
While the predictions of a cashless future won’t come true anytime soon, the use of cash is very much on the decline globally. It is predicted that by 2026 the use of cash will drop to 21%, with the use of eWallets growing globally at a compound annual growth rate of just over 30%.
Online marketplace OnBuy.com sought to identify the UK’s preferred payment methods, establishing just how tech and money savvy UK consumers are when faced with the prospect of a changing world. OnBuy analysed the findings from Worldpay, within their report ‘Global Payments Report’.
Interestingly, the report predicts that the use of eWallet payment methods will increase from around 36% in 2018 to almost HALF of all ecommerce transactions globally by 2022 (47%).
OnBuy.com can reveal that Credit Cards is still the preferred payment method of Americans, representing 32% of all ecommerce payments and 40% of all instore transactions. Which is much higher than the global figures of 23% online and 20% instore.
Thereafter, the US currently favours the following payment methods when purchasing products or services online:
Debit Card (20%), eWallet (20%), Charge & Deferred Debit Card (13%), Bank Transfer (6%), Cash on Delivery (4%) and Pre-paid Card at 3%.
Surprisingly, Americans’ preferred payment method changes when making in person purchases. However, it must be noted that using a Credit Card is still the most prevalent payment method at 40%.
Thereafter, Debit Card is the second most dominant at 35%, followed by Cash (16%), eWallet (3%) and finally Pre-paid Card at a mere 2%.”