Diversify payment methods says global report

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Diversify payment methods says global report Buy
Now, Pay Later is projected to grow faster than
any other method of payment in New Zealand over
the next four years, according to a new report
released today from financial technology leader
FIS (NYSE FIS). The annual Global Payments
Report by Worldpay from FIS, which examines
current and future payments trends across 41
countries, found that global trends in digital
commerce accelerated under the pandemic, pushing
many nations much closer to becoming
predominantly cashless markets.
eCommerce Trends
With New Zealands eCommerce market continuing to
grow amid the pandemic, the FIS report
found Analysis in the report forecasts rapid
growth of BNPL transactions over the next four
years, as new players enter the market.
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The explosion of BNPL could have significant
consequences for eCommerce credit card
transactions, projected to decrease from 37.6
percent in 2019 to 22.8 percent in 2024.
eCommerce is projected to grow from 5bn in 2020
to 7bn in 2024, an increase of 40 percent. By
2024, eCommerce sales via mobile phones are
projected to grow to 61 percent compared to 47
percent in 2020. In-Store Payment Trends The FIS
report found Credit cards remain the most
popular payment method for in-store purchases,
accounting for almost 37 percent of transactions
in 2020. Digital wallets are the fastest growing
payment method in-store and data in the report
projects adoption will grow at 25 percent
annually for the next four years. With the
rapid response to COVID-19 in New Zealand, cash
payments have remained stable at point of sale
(POS). Over the next five years, the cash economy
is projected to decrease just 0.7 percentage
points to account for 12 percent of in-store
transactions in 2024. Technology Entrepreneur
Magazines marked contrast to their Australian
neighbors, where the findings suggest that cash
will account for just 2 percent of payments by
2024. Despite Kiwis bucking the global trend
towards a cashless payments market, with the
growth of Buy Now Pay Later New Zealand consumers
are ushering in a new dawn in digital commerce,
said Phil Pomford, General Manager APAC, Worldpay
Merchant Solutions at FIS. Beyond BNPL, new
technologies will continue to change how we pay,
and businesses need to accommodate by
diversifying payment methods. The shop floor is
now in the palm of our hands and consumers expect
the same hassle free and convenient shopping
experience whether they are purchasing in app,
through their social feeds or in the real world.
To be successful it is vital merchants put
customer experience at the heart of the checkout
process. Those who increase their digital
payments capabilities will be well-positioned to
capture the next wave of growth in retail and
eCommerce.
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About The Global Payments Report
Figures quoted are taken from data published in
The 2021 Global Payments Report by Worldpay from
FIS unless otherwise stated or referenced. This
data was collected using consumer surveys, B2B
surveys and input from local research teams.
46,000 consumers were surveyed globally. For
research methodology, please refer to page 135
of the report. Digital wallets are mobile wallets
such as Apple Pay, Google Pay and Samsung Pay
that work only within a specific mobile operating
system as well as digital wallets such as
Alipay, WeChat Pay, Paytm and Amazon Pay that are
operating system- agnostic.