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”.
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.
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.”
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.