EBAday 2022: Reasons Digital Payments Will Dominate This Year
April 20, 2022
Previously we have talked about the rise of digital payments brought on by the pandemic and how they are gaining traction globally; in the near future, the use of digital wallets are likely to become mainstream.
A recent 2022 Global Payments Report by FIS revealed that as of 2021,BNPL accounted for 8.5% Europe’s commerce transaction value in 2021. Far above that of North America’s share at 3.8%.
The report found that in 2021, credit cards were overtaken by digital wallets in Spain. Their use accounted for 30.3%. Debit cards, bank transfers and cash on delivery (COD) are expected to decline through to 2025, while digital wallets, credit cards and BNPL are seeing a steady increase.
The changes come with its own set of challenges. While digital platforms are making it easier for customers to create a direct bridge to their financial institutions, fintechs and payment service providers need to deal with the challenges that come with it.
2022 will bring with it the EU’s Digital Strategy, and this will give a leg up to financial institutions and fintechs to focus their services around the new regulations that will emerge.
This advice will focus on understanding the direction in which the regulations and overseeing of fragmented value chains, platform business models and mixed activity groups, such experimentation of new financial services by big tech.
New technology is becoming increasingly available, this digitalization means payment providers need to adapt and overcome the challenges that come with operating around a new operating model.
You can learn more in Finextra and the Euro Banking Association’s highly anticipated EBAday 2022, held on the 31st of May and the 1st of June in Vienna, Austria.