A Brief Look At 2023 Global Payments Report

April 5, 2023

According to the recently published Global Payments Report 2023, account-to-account (A2A) payments saw steady growth in the global market in 2022. Boosted by safer, faster and more convenient payments for consumers with the expansion of real-time payment (RTP) systems.

The report looked at the payment habits of consumers in both online and brick-and-mortar stores across 40 markets around the globe.

In 2022, there were as many as 70 new schemes for RTP which provided A2A payments with “speed rails”.

(RTP) helped drive A2A payments to account for $525 billion in global e-commerce transaction value, up 13% from $463 billion in 2021.

A2A helps drive down the acceptance costs incurred by merchants, which is why according to President of Worldpay Merchant Solutions, Jim Johnson, A2As are gaining momentum, as it is not only more convenient for consumers, but also provides numerous benefits to merchants. These and many other reasons are driving some merchants to offer incentives when consumers make use of the A2A method.

A2A payments can reduce the cost of payment acceptance in comparison to cards, while offering the instant settlement of funds and boosting their cash flow. Some merchants are even offering customers incentives to pay with A2A, which is certainly helping it gain traction.

In the US market in 2022, the momentum and growth of A2A accounted for 9% of all e-commerce transaction value. This number is expected to grow to 11% by 2026, the reasons for this projected growth is the launch of FedNow, a new (RTP), joining the existing Zelle and The Clearing House.

In the global market, the global e-commerce transaction value grew from 10% from 2021 to 2022, reaching almost $6 trillion around the world.

Credit card transactions are still going strong, with “credit card transaction value growing 6% in e-commerce and 12% at the point of sale (POS) from 2021-2022.”

BNPL accounted for 5% of global e-commerce transaction value in 2022, and is projected to rise to 6% by 2026. POS financing – including BNPL, retailer financing and bank financing – represented 2% of POS transaction value in 2022, a share it is projected to maintain through 2026

Digital wallets are still the leading payment method, and it is projected it will remain so for a while, projections show that in 2026, e-commerce will see a usage of digital wallets at 54% and POS at 43%.

Cash continues to see a decline in usage, from 26% of POS transaction value in 2019 to 16% in 2022. It is expected to fall below 10% by 2026.

According to Jim, inflation and global economic slowdown has not put a damper in e-commerce, as it continues to grow across all regions and markets.

Innovation in payment solutions is running at a hot pace right now, greatly improving the experience for customers, reducing headaches for merchants, and unlocking new avenues for growth. Meeting consumer demand for advanced payments features now can help businesses thrive through economic troubles, while potentially gaining market share from competitors

Want to learn more? Check out Payments Cards and Mobile’s full write-up here.

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