Card payments no longer the default choice for consumers - new research from Boku reveals
27 Março 2024 - 8:00AM
Business Wire
- A new global study of 10,500 consumers across 37 markets
reveals a mainstream shift in the way people around the world pay
online
- Findings show the continued worldwide decline of card payments’
market share for ecommerce transactions as consumers turn instead
to local payment methods such as digital wallets
- By value, card payments will account for just 20% of ecommerce
transactions in 2028, down from 30% in 2023, while localised
payment methods will represent 58% of global ecommerce transactions
by 2028
Boku, the global network for localised payment solutions, has
released a global research report entitled ‘2024 Global Ecommerce
Report: The Changing World of Payments’ - an in-depth analysis of
payment preferences and purchasing behaviours of consumers across
the globe. The report reveals a continued decline in the market
share of traditional card payments and a significant increase in
the use of local payment methods for ecommerce purchases across the
globe.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240325133414/en/
Boku Global Ecommerce Report 2024 - The
Changing World of Payments (Photo: Business Wire)
Produced in collaboration with Juniper Research, the report
surveyed 10,500 consumers and analysed data from 37 major markets
across the globe to identify global, regional and country specific
trends. The findings highlight significant and rapid consumer
shifts in ecommerce payments away from the traditional card
networks (and in emerging economies cash on delivery) towards local
payment methods such as digital wallets. Account to Account (A2A)
payments (instant payments and bank transfers) such as PIX in
Brazil, UPI in India, or iDEAL in the Netherlands are revealed as
the fastest growing payment method within ecommerce.
Key global findings include:
- Card values will decline to 19% of transaction value by 2028
(down from 31% in 2023). By volume, card payments will account for
just 30% of ecommerce transactions in 2028 ( down from 41% in
2023)
- By 2028, local payment methods will account for 58% of
ecommerce transaction values (up from 47% in 2023), accounting for
a majority of transaction value online for the first time
- By 2028, 37% of all individuals globally will actively use
local payment methods
- Instant A2A & non-card-linked wallets to account for over
50% of ecommerce transaction value globally by 2028
- Instant A2A payments are forecast to more than double and
become the fastest growing local payment method within ecommerce,
accounting for 18% of all ecommerce transactions by volume by 2028
globally (up from 8% in 2023)
Payment choice is key for consumers around the world. Today’s
mobile-first generations - with whom access to and affinity with
card networks is low - prioritise the convenience and seamless
nature of paying with digital wallets, direct carrier billing and
Instant A2A payments. As with the adoption of many new
technologies, the adoption of localised payment solutions by
younger generations and populations is paving the way for adoption
by older consumers.
Nick Maynard, 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."
Stuart Neal, 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.” said Stuart
Neal, CEO, Boku.
Regional takeaways include:
- Africa & Middle East is in many ways already a local
payments and mobile money success story, with the region’s services
such as M-PESA and MoMo seeing strong adoption. As such, merchants
require highly localised payments strategies in these markets to
ensure continued results.
- Asia Pacific payment requirements are changing quickly.
While card payments will continue to account for a significant
amount of payments - around a third of ecommerce payments by volume
by 2028 - local payment methods are fast gaining traction, winning
market share from card payments.
- Europe in particular will see a dramatic shift away from
cards, with the proportion of ecommerce transaction volume
featuring cards dropping from 53% in 2023 to just 30% in
2028. A2A payments will experience massive growth from 16%
volume of transactions in 2023 to 25% in 2028, due to the ability
it provides in moving money without additional intermediaries.
- Far East & China is a mobile wallet dominated
market, with great emphasis on “superapps” such as WeChat and
Alipay. Ecommerce payment methods are anticipated to stay somewhat
consistent with this over the forecast period with little shift in
the payment methods used, due to how well-established the market
already is.
- LATAM is a market in motion – ecommerce payment methods
are changing rapidly, which means merchants must alter their
acceptance strategies, or they will fail to take advantage of
ecommerce growth. PIX is the obvious early success story, but CoDi
in Mexico, as well as PSE in Colombia are also winners.
- North America is a heavily-developed market in regards
to ecommerce, with the majority of consumers having access to bank
accounts and plastic cards. One of the greatest concerns for
ecommerce consumers across North America is the ability to checkout
seamlessly, as well as having the ability to pay in installments
resulting in growth of lower friction payment methods such as; Buy
Now Pay Later (BNPL), A2A payments and non-card-linked
wallets.
- The Indian Subcontinent is seeing an increasing shift
towards local payment methods, with A2A payments in particular
gathering momentum. Local payment methods are anticipated to have a
sizable share of payment methods by 2028, equating to 72% of
ecommerce transactions by value, an increase from 58% in 2023.
India is the largest driver of both volume and value within Indian
Subcontinent, therefore it is unsurprising that the highly
successful UPI scheme is driving local payments forward, providing
a template for future growth.
Download the full research report:
http://www.boku.com/boku-knows/2024-boku-global-ecommerce-report
Notes to editors
About the research methodology
Juniper Research conducted the research using a combination of
online surveys and data forecasting across 37 countries.
Juniper Research surveyed 10,500 ecommerce payments users (750
per country) across Brazil, China, Colombia, India, Indonesia,
Japan, Malaysia, Nigeria, Philippines, Saudi Arabia, South Korea,
Taiwan, Thailand and Vietnam. The fieldwork being completed in
October 2023.
The forecasts use data gathered from a number of Juniper
Research’s Fintech & Payment research suites. The forecasts and
datasets are updated on a quarterly basis.
ecommerce transaction volume is defined as the number of
transactions performed via each payment method, while transaction
value is the equivalent dollar value of transactions made via each
payment method.
About Boku Inc.:
Boku helps people pay the way they want to by building a global
network of localised payment solutions including digital wallets,
direct carrier billing, and account to account / real-time payments
schemes. Boku’s global payments network now includes over 300 local
payment methods worldwide, reaching over 7.5 billion consumer
payment accounts in more than 90 countries. Boku works with the
world’s largest merchants including Amazon, Google, Spotify, Meta,
Microsoft, Netflix, Spotify, Tencent and Sky, helping them to grow
their businesses in every corner of the globe.
Boku Inc. was incorporated in 2008 and is headquartered in
London, UK, with offices in the US, India, Brazil, China, Estonia,
France, Germany, Indonesia, Japan, Singapore, Spain, Taiwan and
Vietnam.
To learn more about Boku, please visit our website at
www.boku.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240325133414/en/
Press enquiries: Cat Lenheim ThoughtLDR
cat@thoughtldr.com +44 7511 117587
Boku (LSE:BOKU)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Boku (LSE:BOKU)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024