Payment Channels and Types of Transactions: Digitization, Integration, and the Economy

While most retail sales still occur in-store, digital is driving innovation as ecommerce grows.
Domestic P2P and digital remittance providers will diversify to lure users and monetize solutions.
Digitization is dominating B2B and disbursement innovation.

Ongoing ecommerce growth is pushing payment providers to make efficient and inexpensive digital payment solutions their top priority despite the ever-changing post-pandemic landscape. 

In-store shopping remains the largest US retail channel by both share and dollars. By the end of 2026, brick-and-mortar will still account for $4 in $5 spent in retail—making it a critical investment for payment providers despite being less flashy than ecommerce and emerging digital channels. In order to keep shoppers in-store, merchants must broaden their accepted payment methods by allowing proximity mobile payments; contactless cards; buy now, pay later; and account-to-account payment options. According to Zebra Technologies,  as of July 2022, 45% of retailers worldwide were planning to convert cash register space to self-checkouts due to consumer interest, cost-saving potential, and the need to cut or reallocate labor.

Though we forecast ecommerce sales will remain above $1 trillion for the second consecutive year in 2023, some changes will need to be made to the purchasing landscape to address declining computer and desktop retail sales. Because consumers have been spending more time on mobile devices, it is predicted that smartphones will generate 87.2% of mcommerce sales this year. As a result of this uptick, payment providers must invest in their mobile shopping and buying experience. Social commerce and connected devices are also showing larger adoption rates and can be expected to continue rising over the next few years.

Other payment sectors to watch include domestic peer-to-peer payments, which more than 3 in 5 smartphone users have adopted despite the high level of fraud; digital remittance, which nearly doubled between 2022 and 2027 even with its high …read more

Source:: Businessinsider

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