In 2020, e-commerce store spending grew at the fastest rate in five years, while in-store cash usage plummeted, triggered by the widespread adoption in 2020 of systems like Apple Wallet and other alternative systems. payment.
According to Juniper Research, Apple Pay is way ahead of Google Pay and Samsung Pay and is likely to retain that lead. The report estimates that Apple Pay had nearly 2020 million users in 227, up from 140 million users in 2018. In contrast, Google Pay users hit 100 million in 2020 while in 2018 it had 39 million users. Samsung, which had 51 million users in 2018, hit 100 million in 2020.
Worldpay's annual Global Payments Report conducted by FIS examines current and future trends in 41 countries. Findings from the 2021 report show that lockdowns and personal security measures taken during the health crisis have accelerated the shift to digital payment methods in all areas of user consumption.
In-store payment trends
The FIS report ensures:
• Globally, the use of digital wallets on mobile phones has surpassed the use of cash for payments in brick-and-mortar stores for the first time. Cash utilization fell 10% in 2020, resulting in only a fifth of all face-to-face payments in the world.
• The use of cash in brick-and-mortar stores has halved in Canada, the UK, France, Norway, Sweden and Australia.
• Cash payments in the United States were $ 2020 trillion in 2019, while in 1,4 they were $ XNUMX trillion (in the United States the trillion is one million million).
• In the Asia-Pacific region, mobile payment continues to be the leading payment method, with 40% of payments in physical stores made via contactless systems. However, the use of digital wallets accelerated across all regions in 2020 and now accounts for 10% of payment methods in North America, 8% in Middle East-Africa, 7% in Europe and 6% in Latin America.
• The report predicts that physical money will account for less than 2024% of in-store payments in the United States in 10 and only 13% of payments worldwide. Over the same time frame, they estimate that payments via digital wallets such as Apple Pay will account for more than a third of all in-store payments.
Trends in e-commerce
Ecommerce exploded during the 2020 pandemic. According to the FIS report:
• Total e-commerce spend globally grew 19% last year to $ 4,6 trillion. That growth was the highest in five years and represents an acceleration equivalent to two or three years in just one year. Analysts indicate that e-commerce could reach 7,3 trillion in 2024 (in the United States, one trillion equals one million million).
• Globally, the use of digital wallets to pay in 2020 increased by 7%. By 2024, digital wallets could account for more than half of all e-commerce payments globally, according to the report.
• The report shows that “buy now, pay later” adoption continues to grow rapidly in Europe and North America and is expected to double by 2024.
• Conversely, the use of traditional payment methods such as cards and cash on delivery are rapidly losing market share and are projected to have less than 2024% of e-commerce transactions by 40.
"Research shows that the world is entering a new phase of adopting digital payment methods," said Jim Johnson, Director of Business Solutions at FIS, in a statement. “The global pandemic has made a future without physical money closer than ever. The implications for traders are profound. They need to create technology-centric strategies to cater to the diverse preferences of consumers and their rapid changes in shopping habits, so as to enable the inclusion of the world's less favored communities. For those companies that are far-sighted enough to embrace the most advanced ways of paying and investing in them, the growth opportunities will be huge and potentially revolutionary. "
To download the complete copy of the report, including methodologies, visit https://worldpay.globalpaymentsreport.com/
