Boku, a global network for localized payment solutions, has
collaborated with Juniper Research to release the ‘2024 Global Ecommerce
Report: The Changing World of Payments’. The report offers an examination of
consumer payment preferences and behaviors across the globe, highlighting a
notable trend towards local payment methods in ecommerce transactions.
Based on a survey of 10,500 consumers and data analysis from
37 major markets, the report indicates a decline in the market share of
traditional card payments alongside an increase in the use of local payment
methods for online purchases globally. Key findings include the rapid growth of
Account to Account (A2A) payments, such as PIX in Brazil, UPI in India, and
iDEAL in the Netherlands, emerging as the fastest-growing payment method within
ecommerce.
Source: 2024 Global Ecommerce Report – Boku & Juniper Research
According to the report’s global findings, traditional card
payments are expected to decrease to 19% of transaction value by 2028, down
from 31% in 2023. Conversely, local payment methods are projected to constitute
58% of ecommerce transaction values by 2028, up from 47% in 2023, marking the
first time they surpass traditional card payments in transaction value.
Additionally, it is estimated that 37% of individuals globally will actively
utilize local payment methods by 2028.
Instant A2A Payments and Wallets to Dominate by 2028
Instant A2A and non-card-linked wallets are forecasted to
account for over 50% of ecommerce transaction value globally by 2028, with
instant A2A payments anticipated to more than double, constituting 18% of all
ecommerce transactions by volume by 2028, up from 8% in 2023.
Stuart Neal, CEO of Boku
Stuart Neal, the CEO of Boku said: “Our research shows the
way the world transacts online is changing fast, and that change is being
driven in the main by a consumer preference for convenient, seamless payment
methods like digital wallets, direct carrier billing and Account to Account transfers.
Merchants now realise that the key to their future global growth and success
lies in their ability to offer consumers more payment choice.”
“At Boku, we’re excited to provide the world’s largest
merchants with access to our global network of localised payment solutions so
their customers can more easily pay for the things they love, the way they want
– no matter where they are in the world.”
Nick Maynard, VP of Fintech Market Research, at Juniper Research, Source: LinkedIn
The report emphasizes the significance of payment choice for
consumers worldwide, particularly among mobile-first generations, who
prioritize the convenience and seamlessness of digital wallets, direct carrier
billing, and instant A2A payments. This shift in consumer behavior is shaping
the present and potentially paving the way for adoption by older demographics.
From Mobile Money to A2A Payments, Insights from Africa
to Asia
Regionally, the report provides insights into specific
markets. In Africa & Middle East, local payments and mobile money services
like M-PESA and MoMo have seen success, necessitating highly localized payment
strategies. Similarly, in Asia Pacific, while card payments remain significant,
local payment methods are rapidly gaining traction.
Source: 2024 Global Ecommerce Report – Boku & Juniper Research
Europe anticipates a decline in card payments with
substantial growth in A2A payments, while the Far East & China continue to
prefer mobile wallets. LATAM and North America also exhibit shifting payment
preferences, while the Indian Subcontinent sees a significant shift towards
local payment methods, particularly A2A payments, driven by successful
initiatives like UPI in India.
Nick Maynard, the VP of Fintech Market Research, at Juniper
Research said: “Our research for this report from Boku highlights that against
a backdrop of continued strong growth in ecommerce, the global card schemes
(credit, debit and card-linked wallets) continue to lose share to regional and
local payment methods. This is a trend seen at an aggregate global level but
also repeated in every region across the world.”
Boku, a global network for localized payment solutions, has
collaborated with Juniper Research to release the ‘2024 Global Ecommerce
Report: The Changing World of Payments’. The report offers an examination of
consumer payment preferences and behaviors across the globe, highlighting a
notable trend towards local payment methods in ecommerce transactions.
Based on a survey of 10,500 consumers and data analysis from
37 major markets, the report indicates a decline in the market share of
traditional card payments alongside an increase in the use of local payment
methods for online purchases globally. Key findings include the rapid growth of
Account to Account (A2A) payments, such as PIX in Brazil, UPI in India, and
iDEAL in the Netherlands, emerging as the fastest-growing payment method within
ecommerce.
Source: 2024 Global Ecommerce Report – Boku & Juniper Research
According to the report’s global findings, traditional card
payments are expected to decrease to 19% of transaction value by 2028, down
from 31% in 2023. Conversely, local payment methods are projected to constitute
58% of ecommerce transaction values by 2028, up from 47% in 2023, marking the
first time they surpass traditional card payments in transaction value.
Additionally, it is estimated that 37% of individuals globally will actively
utilize local payment methods by 2028.
Instant A2A Payments and Wallets to Dominate by 2028
Instant A2A and non-card-linked wallets are forecasted to
account for over 50% of ecommerce transaction value globally by 2028, with
instant A2A payments anticipated to more than double, constituting 18% of all
ecommerce transactions by volume by 2028, up from 8% in 2023.
Stuart Neal, CEO of Boku
Stuart Neal, the CEO of Boku said: “Our research shows the
way the world transacts online is changing fast, and that change is being
driven in the main by a consumer preference for convenient, seamless payment
methods like digital wallets, direct carrier billing and Account to Account transfers.
Merchants now realise that the key to their future global growth and success
lies in their ability to offer consumers more payment choice.”
“At Boku, we’re excited to provide the world’s largest
merchants with access to our global network of localised payment solutions so
their customers can more easily pay for the things they love, the way they want
– no matter where they are in the world.”
Nick Maynard, VP of Fintech Market Research, at Juniper Research, Source: LinkedIn
The report emphasizes the significance of payment choice for
consumers worldwide, particularly among mobile-first generations, who
prioritize the convenience and seamlessness of digital wallets, direct carrier
billing, and instant A2A payments. This shift in consumer behavior is shaping
the present and potentially paving the way for adoption by older demographics.
From Mobile Money to A2A Payments, Insights from Africa
to Asia
Regionally, the report provides insights into specific
markets. In Africa & Middle East, local payments and mobile money services
like M-PESA and MoMo have seen success, necessitating highly localized payment
strategies. Similarly, in Asia Pacific, while card payments remain significant,
local payment methods are rapidly gaining traction.
Source: 2024 Global Ecommerce Report – Boku & Juniper Research
Europe anticipates a decline in card payments with
substantial growth in A2A payments, while the Far East & China continue to
prefer mobile wallets. LATAM and North America also exhibit shifting payment
preferences, while the Indian Subcontinent sees a significant shift towards
local payment methods, particularly A2A payments, driven by successful
initiatives like UPI in India.
Nick Maynard, the VP of Fintech Market Research, at Juniper
Research said: “Our research for this report from Boku highlights that against
a backdrop of continued strong growth in ecommerce, the global card schemes
(credit, debit and card-linked wallets) continue to lose share to regional and
local payment methods. This is a trend seen at an aggregate global level but
also repeated in every region across the world.”
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- Source: https://www.financemagnates.com//fintech/payments/card-payments-no-longer-the-default-choice-predicts-19-plummet-in-4-years/
