The evolution of the consumer payment method is reshaping payments diversely in its wake around the world. Payment preferences are as diverse as the people that use them. With a close look, we find global trends across the universe of commerce.
In 2020, the biggest trend is the rise of digital and mobile wallets. They make shopping online easier than ever and already lead e-commerce payment preferences with 42% of spending in 2019—up from 36% since 2018.
Related: Future of mobile payments?
China continues to lead the way in digital and mobile wallet use accounting for a remarkable 71% of e-commerce spend, but adoption is increasing everywhere: 32% of e-commerce spend in India, 25% in Germany, and 24% in the US.
Digital and mobile wallets already account for 22% of global POS spend in 2019 and we project they will account for nearly a third (30%) of consumer payments within five years.
Outside of China, the most popular digital and mobile wallets are colloquially known as “The Pays.” Until recently that shortlist included Apple Pay, Google Pay, and Samsung Pay. Those incumbents are now facing competition from another “pay” – Amazon Pay.
Amazon reports growth of 59% in active merchants and 103% in overall revenue from between 2017 and 2018; all Amazon Pay markets globally are showcasing double-digit growth.
The only other online payment method we forecast to gain market share are buy now pay later – such as Affirm, Afterpay and Klarna – to satisfy consumers who enjoy the immediacy that this option provides.