The payment news articles we curated for this week discuss the payment trends we’ve been following over the past year.
Mobile Wallet Industry Experiencing Explosive Growth
Payments Dive shares insights from a Finaria report that estimates the mobile wallet industry will grow to $2.4 trillion in 2021, a 24% increase from last year.
While cash, credit cards, and debit cards are still the go-to payment methods for Americans, the U.S. mobile payments market is the second-largest in the world and is expected to grow by 49% in 2023.
The slow adoption of mobile wallets can be attributed to a slow rollout in retail stores; however, retailers’ adoption accelerated once the demand for contactless payments increased during the pandemic.
ISVs can stay on top of the contactless trend through our payment integrations. Learn more.
Biometric Payment Cards Are Slowly Becoming Reality
According to Business Insider, Mastercard and Samsung will be joining forces to offer a biometric payment card in South Korea later this year. Cardholders will be able to authenticate transactions with their fingerprint.
This news comes on the heels of Visa piloting biometric solutions in the U.S. and Europe. Insider notes that biometric payment cards will become more popular due to increased demand for contactless payments and lower production costs thanks to innovations in the space.
The benefits of biometric payment cards include reducing fraud and making multi-factor authentication more seamless.
Three Payment Technologies That Achieve Agility
A Capital One thought leadership piece on Forbes discussed how companies are looking to promote contactless payments, improve mobile and digital experiences, and implement real-time payments within their business processes to stay agile and drive growth.
The article rightfully points out that as businesses focus on their mobile and digital experience, they should consider the entire customer journey and how online and offline interactions are starting to blend.
ISVs can approach this idea of embedded commerce by driving payments through enhanced customer engagement, streamlined payment experiences, and communication tools to provide a frictionless experience.
“Buy Now, Pay Later” Continues To Rise In 2021
An opinion piece on AdAge shared the latest insights into the buy now, pay later trend. When retailers offer installment payment options, they have better chances of reducing abandoned carts and increasing the amount spent per transaction. Additionally, Gen Z shoppers are fueling this rapid growth, as they are less likely to want credit card debt.
While buy now, pay later is usually discussed in the retail space, use cases can extend to other verticals with high ticket prices such as medical and automotive. Head over to our blog post on alternative financing to learn why it’s essential for ISVs to offer this payment option.
Digital and P2P Payments Growth Spurred By Third Round of Stimulus Payments
Business Insider recently discussed the positive effects the third round of coronavirus stimulus payments will have on the ACH network and peer-to-peer (P2P) payment platforms.
As referenced in our last roundup, ACH transactions surged in 2020 because of the CARES Act. In addition to aiding the U.S. government with getting payments to consumers quickly, the ACH network will also be powering the distribution by P2P providers such as Square’s Cash App and PayPal’s Venmo.
Conclusion
It’s exciting to see the payment trends we foresaw last year get news coverage throughout the first quarter of 2021! Stay informed on the payments front by subscribing to our email newsletter.
Michelle Mondonedo
Brand Marketing Manager
