Our latest payment news roundup takes a look at payment trends such as how rapidly payment methods are evolving, the projected increase in buy now pay later (BNPL) spending, eCommerce consumers’ perspectives on fraud, and more.
Accelerating B2B Payment Optimization Plans
Pymnts.com recently released The Treasurer’s Guide To AR Payment Optimization, which analyzed current B2B payment processes. The report noted that, with the shift to remote work over the past year, many businesses took their accounts payable (AP) and accounts receivable (AR) processes digital, though there is still space for more traditional B2B payment methods such as paper checks.
Other interesting statistics from the report include:
- 66% of firms are now receiving B2B payments from clients digitally.
- 59% of companies that still use manual AR processes plan to take them digital.
- Paper checks are expected to account for 45% of all B2B payments by the end of this year.
- 60% of companies are in the process of moving from manual payments toward electronic ones instead.
BNPL spending to swell to $995B globally by 2026, study finds
Alternative financing methods such as buy now pay later (BNPL) have recently seen an increase in popularity, with research from the Motley Fool noting that 55% of Americans have used the BNPL option as of March 2021, compared to 37% in July 2020.
That exponential growth is expected to continue over the next five years, with Juniper Research predicting that money spent through the BNPL payments market will nearly quadruple - a 274% increase - between 2021 and 2026.
Juniper Research also notes that by 2026, $995 billion is expected to be spent through BNPL payment options, up from an estimated $226 billion in 2021.
PYMNTS Data Brief: 67 Percent Of Middle-Income Earners Ice eCommerce Sites Over A Single Fraud Incident
With an increase in the number of consumers conducting their purchases via eCommerce, some are starting to have concerns about the security of their transactions.
A Securing eCommerce Study released by Pymnts.com surveyed nearly 2,400 U.S. consumers about the effects the pandemic has had on their eCommerce use, particularly as it relates to their concerns around fraud and data theft.
The survey found that 65% of respondents said experiencing a single incident of data theft or fraud would cause them to no longer use that eCommerce merchant.
Fraud is clearly a concern across the board with consumers who make online payments, even those who don’t make them frequently. The survey also noted that “even consumers who are purchasing less or exactly as much online as they did before the pandemic began report feeling more worried about their personal data being stolen than they were before it started.”
A Rapid Evolution of Payment Methods in the New Normal
PaymentsJournal took a look at how quickly payments evolved over the past year, noting “the events of 2020 reinforced trends that were already in play, but they accelerated them by several years within a period of mere months.”
Here are a few of their observations:
- In 2020, 78% of global consumers changed the way they pay, and 70% used a new payment method for the first time.
- In the spring of 2020, 41% of global consumers who said their cash usage was high tried a contactless card payment.
- In the US, eCommerce sales grew by a staggering 44% in 2020 - the highest year-to-year growth in over 20 years.
- Only 16% of consumers worldwide say they are likely to revert to their old payment methods post-pandemic.
For a deeper dive into contactless payments and other top payments trends of 2021, download our eBook.
Mobile Wallets Closing In On Credit Cards Among Highly Connected Consumers
How Consumers Live in the Connected Economy, a newly-issued report from Pymnts.com, shows that among the roughly 30% consumers the study identified as "highly connected" (defined as “those who use digital tools on a regular basis to perform a substantial portion of their daily activities”), mobile wallets have seen an increase in popularity.
Highly connected consumers haven’t given up on physical credit cards, however - those are still in the top spot of their favored payment methods, with 80% preferring them. Mobile wallets and debit cards tie for second place, with 65% of consumers preferring them.
Global Payments Integrated can help ISVs stay current in the ever-evolving landscape of the payment industry by helping them implement new payment technology and more. Contact us today for your integrated payments needs, and subscribe to our blog for more of the latest payments industry news.