2024 Global Payments Report

"1. Digital #wallets are the top - and fastest growing - payment method globally:

• They represent $14 tn in consumer spending in 2023 (e-com and POS) - forecasted to grow to$25 tn by 2027

• 50% e-com global share ($3.1 trillion), to increase to 61% by 2027

• 30% POS global share ($10.8 trillion), to increase to 46% by 2027

• Catching up fast in card-dominated markets (Europe, North America)

2. #Cards are as relevant as ever:

• Have ceded share to digital wallets, but remain relevant

• In card-dominated markets, the spend lost is shifting to digital wallets like Apple Pay, Google Pay and PayPal

• If card wallets spend is included, share remains flat through 2027

3. #A2A payments are on the rise but not everywhere:

• A2A schemes have risen mainly in emerging markets (i.e. India, Brazil), due to strong government support and as a means to achieve financial inclusion and to promote digital payments

• In advanced markets, A2A grows via collaboration between banks

• A2A growth considerably slower in established card markets such as Australia, Canada, the UK and the USA

4. Buy-Now-Pay-Later (#BNPL) is here to stay:

• BNPL challenges are not due to the business model or declining consumer popularity, but a result of macro and looming regulation

• BNPL mainstream adoption by banks, Bigtechs, retailers and platforms

• BNPL global e-com transaction value is to increase by 43% from 2023 to 2027 (from $316 to$452 bn)

• The winners are increasingly those for whom BNPL is not the primary business model

5. Global #ecommerce growth outpaces POS by > 2-1:

• Global e-com growth slows, yet remains robust

• E-com as a % of all commerce continues to rise - 14.4% globally in 2023 and forecast to exceed 17% by 2027

• The global e-commerce pie expanded by 10% YoY to reach $6.1 tn in transaction value

6. Cash still relevant but in decline:

• Globally, cash fell -8% YoY from $6.7 tn in 2022 to$6.1 tn in 2023

• In 2023, cash was the leading payment method at POS in 12 of the 40 markets - by 2027 5 will remain

7. Prepaid cards remain key:

• Will exceed $1 tn in global transaction value in 2024

• Prepaid cards are thriving today because of the wide range of use cases: private-label gift cards, general purpose reloadable cards, direct deposit payroll, government benefit distribution

8. Post-pay payment methods in decline:

• The vast majority of post-pay orders are paid for in cash

• They accounted for only 0.3% of e-com transaction value globally in 2023 (however 4% in Latin Ameica)

• Significant decline over the past years (-13% CAGR between 2019-2023), due to improved financial inclusion, less cash and an increase of digital payments"

Author

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