Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

The payment industry's biggest trends in 2021-and the pandemic's impact on digitization in the payments landscape

The payment industry's biggest trends in 2021-and the pandemic's impact on digitization in the payments landscape

Insider Intelligence takes a look at the biggest trends driving short- and long-term growth and shaping the future of the payments industry.

The coronavirus pandemic accelerated payments industry digitization by two to three years, as lockdowns, restrictions, and ongoing consumer health concerns upended daily life in ways that trickled into spending trends and consumer habits.

Digital payments are swelling to meet demand for speed and simplicity.


The Payment Processing Industry Overview


The power dynamics in the payments industry are changing as businesses and consumers shift dollars from cash and checks to digital payment methods. Cards dominate the in-store retail channel, but mobile wallets like Apple Pay are seeing a rapid uptick in usage and paving the way for the future of payments.

At the same time, e-commerce will chip away at brick-and-mortar retail as smartphones attract a rising share of digital shopping. Digital peer-to-peer (P2P) apps are supplanting cash in the day-to-day lives of users across generations as they become more appealing and useful than ever.

And change is trickling down into bigger industries long-dominated by cash and check, like remittances and business-to-business payments.

In response, providers are scrambling for market share. Skyrocketing consolidation that creates mega-giants is forcing providers to diversify in search of new volume.

The Payments Industry Explained


In this report, Insider Intelligence will examine the payments ecosystem today, as well as the pandemic's impact on growth drivers and the industry's future. The report begins by tracing the path of in-store and online payments from processing to settlement across key stakeholders.It then unpacks pandemic-driven changes in usage of various payment methods, and forecasts growth and defines drivers for key digital payment channels and transaction types as the pandemic accelerates digitization.

Finally, it highlights three trends that are changing the industry, looking at how surging fraud, a revenue crunch, and rising demand for white-labeled payments features from unconventional players might spark change in the years to come.

Payments Industry Trends
In-store payment methods


In-store payment methods dipped a little over 3% in 2020—but it still holds the majority of sales. Debit and credit cards continue to lead the segment, as cash and check usage slowly ticks downward. And surging contactless penetration is set to bring mobile payments in-store to prominence for the first time in the years ahead.

Ecommerce growth


Surging e-commerce will continue to eat away at in-store payments' share of overall retail. Online retail sales surged to $794.50 billion, a record-breaking 14.4% of total US retail in 2020, thanks to increased spending on smartphones in particular.

Digital payments


The digitization of payments isn't just contained to retail, though, with real time mobile P2P payments, digital remittances, and digital business payments continuing to blossom as change spreads through the ecosystem. Mobile proximity payment volume accelerated to $131.36 billion, per Insider Intelligence estimates, as major wallets added users at a record clip in 2020.

Credit cards


Payments made via credit card will grow from $1.75 trillion in 2019 to $1.82 trillion in 2024, marking a 0.79% CAGR. High credit appetite and robust rewards programs — which are set to expand as issuers aim to keep their payments solutions top-of-wallet — will entice spending and help the segment tick up, though growth will be slower than inflation.

The financial institutions mentioned in this report are: ACI Worldwide, Adyen, Affirm, Afterpay, AiFi, Alliance Data, Amazon, American Express, Apple, Bank of America, Barclays, Billtrust, BNP Paribas, Caper, Capital One, Citi, Clover, Discover, ExxonMobil, Facebook, Fiserv, FIS, Galileo, Global Payments, Gemalto, Giant Eagle, Google, Grabango, Green Dot, Idemia, Ingenico, Instagram, Interlink, iZettle, JPMorgan Chase, Klarna, Kount, LG, Maestro, Mastercard, Marqeta, Mobeewave, MoneyGram, NACHA, NBC Universal, NCR, Payoneer, PayPal, Paysafe, Remitly, Shopify, Square, Standard, Star, Stripe, SumUp, Synchrony Financial, TerraPay, TikTok, Thales, The Clearing House, Transferwise, USAA, Venmo, Verifone, Visa, Vocalink, Walmart Wells Fargo, Western Union, Zelle

In full, the report:


*  Explains the pandemic's impact on major sectors of the payments industry

*  Follows a typical card payment from processing to settlement, and discusses the roles of key stakeholders, including acquirers, processors, issuers, and facilitators

*  Evaluates key trends impacting payments hardware and software providers

*  Discusses volume forecasts in key categories, including ecommerce, mobile payments, remittances, and B2B payments

*  Assesses growth drivers across the ecosystem in these key categories

*  Identifies three trends that will define the landscape in 2021, and what they might mean for key players

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
×