EXECUTIVE SUMMARY - Global Payments Report 2024

Introduction

In the rapidly evolving world of financial transactions, staying informed about the latest payment trends is crucial for businesses and consumers alike. The Global Payments Report 2024 provides a comprehensive overview of the most significant shifts in consumer payment behaviors, both online and in-store. As we dive into the findings of the ninth edition of this report, we uncover key insights that highlight the future direction of global payments.

1. Digital Wallets Are the People’s Payment Choice

In 2023, digital wallets emerged as the leading payment method, capturing 50% of global e-commerce spending (over $3.1 trillion) and 30% of global point-of-sale (POS) spending (over $10.8 trillion). Their popularity continues to soar, with projections indicating that by 2027, digital wallets will account for over $25 trillion (49% of global transaction value) across e-commerce and POS. This growth is fueled by the convenience and security that digital wallets offer to consumers worldwide.

2. Cards Show Strength Inside and Outside Digital Wallets

Despite the rise of digital wallets, card usage remains strong. In card-dominated markets, spending is transitioning into digital wallets like Apple Pay, Google Pay, and PayPal, which use card information. This trend indicates that while digital wallets are gaining traction, they are often used in conjunction with traditional cards, keeping card transaction values at an all-time high.

3. A2A Payments Face Challenges in Card-Heavy Markets

Account-to-account (A2A) payments are becoming more prevalent in countries like Brazil and India, known for their lower transaction costs. However, A2A payments have not yet seen similar success in card-heavy markets such as the UK and USA. Merchants appreciate the lower cost of A2A payments, but convincing consumers to move away from familiar card payments remains a significant hurdle.

4. Steady Consumer Demand for BNPL

Buy Now Pay Later (BNPL) services faced notable challenges in 2023, including rising interest rates and increased regulatory scrutiny. Despite these obstacles, consumer demand for BNPL has remained robust. Banks, fintech companies, and large technology platforms are stepping in to meet this demand, offering consumers flexible payment options and capturing significant spending.

5. Global E-commerce Growth Outpaces POS

Global e-commerce exceeded $6.1 trillion in 2023 and is growing at more than twice the rate of global POS value. The projected compound annual growth rate (CAGR) for e-commerce is 9% through 2027, compared to 4% for POS. E-commerce accounted for 14.4% of all commerce globally in 2023 and is expected to surpass 17% by 2027, highlighting the ongoing shift towards online shopping.

6. Cash Remains Relevant Amid Economic Uncertainty

While cash transactions declined by 8% globally in 2023 and are expected to decrease at a CAGR of 6% through 2027, cash remains an essential payment method for billions of consumers. In 2023, cash accounted for 16% ($6 trillion) of global transaction value, maintaining a significant presence in numerous markets despite the growing popularity of digital payment methods.

7. Prepaid Cards to Surpass $1 Trillion in 2024

Prepaid cards are projected to exceed $1 trillion in global transaction value in 2024. Their versatility—used as gift cards, reloadable stored value cards, for payroll, and in business-to-consumer payments and government benefits—drives their widespread adoption. Prepaid cards also support financial inclusion by providing payment options for underbanked consumers.

8. Increasing Financial Inclusion Signals Sunset of Post-pay

Post-pay, a voucher-based payment method allowing consumers to shop online and pay at an affiliated store or ATM, remains popular in cash-heavy markets like LATAM and Japan. However, as financial inclusion improves and the shift away from cash continues, the relevance of post-pay is diminishing. This trend signals a broader move towards more inclusive and accessible financial services.

These insights from the Global Payments Report 2024 illustrate the dynamic nature of consumer payment preferences and the ongoing evolution of the payments landscape. Understanding these trends is crucial for businesses and financial institutions aiming to stay ahead in a rapidly changing market.