The digital payments space has undergone extraordinary change over the past year. Bain has called the Covid-19 pandemic the tipping point for digital payments. While Accenture predicts the shift in consumer spending from cash to digital payments to reach US$7 trillion by 2023.
Touchless to become the new normal
Consumers want the ability to shop at their convenience, while minimizing personal contact with point of sale devices. This has made contactless payments an essential solution in our socially distanced realities. In fact, by 2027, 36% of all payments will be contactless. In addition, the value of contactless payments is expected to surpass $4.60 trillion by 2027. If you haven’t already, jump onto this burgeoning trend today for a quicker and simpler payments experience.
Increased demand for frictionless digital payments
Shoppers want payments to feel like a natural part of the customer experience. Frictionless payment solutions make it easier to complete transactions in whichever way you find most convenient. This is driving demand for frictionless payment experiences that are fast, convenient and instant.
QR codes make a comeback
QR codes, a technology from the 1990s, are making a comeback in the Covid era. It’s ability to connect the digital world to the physical has made it an essential payment method among brick and mortar retailers. Customers can simply pay for something by pointing their smartphone at the black, barcode-like squares. In addition, QR codes are not only a brilliant contactless way to pay, they are extremely secure. Each code generated is unique to each customer, ensuring personal information is protected. As such, the number of QR code payment users is expected to increase by 240% in the US in the next 5 years.
Flexible digital payment methods become the new norm
More consumers than ever are adopting alternative payment solutions like buy now pay later (BNPL). Budget-conscious consumers, particularly millennials and Gen-Z, want flexible, interest-free payment options that don’t push them into unnecessary debt. Therefore, for those seeking a fast, safe and convenient way to pay, part payment platforms like Payflex, empower the shopper by providing them a more transparent, flexible and convenient way to pay.
Just the tip of the iceberg
The global digital payments industry will reach $6.6trn in value in 2021. This represents a 40% increase in just two years. Therefore, it is clear that the Covid-led shift to digital payments is just the tip of the iceberg, especially as consumers get used to their convenience, transparency and agility.