Banking, commerce and payments are all continually shifting landscapes where acceleration in digital adoption and advances in technology are driving significant change in how consumers transact. Digital-first is a common theme in payments, as businesses shift more to online and digital platforms to meet consumer expectations and drive business efficiencies.
Here are five top trends shaking up the payments space in 2023.
1» Digital / mobile wallets
Mobile wallets are growing in use because they meet consumers’ desire for frictionless transactions wherever and whenever they want. According to Capgemini, the use of mobile wallets is set to increase, with more than 60% of transactions being made by mobile wallets in the next three years as consumers continue to prioritize cashless payment methods.
What’s more, digital wallets are also becoming embedded into eCommerce, making payments almost instantaneous. And it’s the younger generation that is leading the way in digital wallet use. From ride-sharing to food ordering or the next ‘super app’ that hits the market, digital wallets make it easy for customers to pay without cash or credit cards.
The metaverse is seen as the future for the next generation. It will move even more of our lives online—both professionally and personally, taking healthcare, education, training and online shopping all to the next level.
But while an exciting opportunity, there are risks too, particularly around the amount of personal information collected in a virtual platform. Organizations will have a responsibility to protect and manage transactions between businesses and consumers. Technology, security and risk management will continue to be a focus with the ongoing increases in cyberattacks and data and privacy breaches.
3» Connected Commerce
Commerce is one of the most agile industries. Driven by evolving consumer demands, businesses must adapt fast to keep one step ahead to be successful. The stakes are high. Consumers are increasingly fickle and happy to move their loyalty elsewhere.
Consumers expect seamless connections across all their channels. Switching easily between social media, eCommerce, mobile apps and different payment methods—debit, credit and gift card, plus buy now, pay later are all no longer nice-to-haves, but essential requirements for merchants. Today’s consumer expects choice in how they purchase and demand a frictionless journey from app, to online, to store.
Customer experience is critical and will drive the success or failure of a business. Social media platforms have moved beyond information sharing to become eCommerce platforms in their own right, where brands sell directly to consumers. The result is the expansion of embedded payments to create a consistent and simple payment experience across all channels.