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Card payments no longer the default choice for consumers – local payments are the new hero
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Global Banking & Finance Review®
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A new global study of 10,500 consumers across 37 markets reveals a mainstream shift in the way people around the world pay online
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.
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:
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:
Download the full research report: http://www.boku.com/boku-knows/2024-boku-global-ecommerce-report
Ecommerce refers to buying and selling goods or services using the internet. It includes various transactions such as online shopping, electronic payments, and digital marketing.
Local payment methods are payment solutions that are tailored to specific regions or countries, often preferred by consumers for their convenience and familiarity.
Payment choice is crucial as it allows consumers to select their preferred payment methods, enhancing convenience and satisfaction in their purchasing experiences.
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