Digital payments continue to gain ground
9% of consumers in major markets choose digital methods as their primary payment option, a figure that will increase to 20% by 2025 according to Accenture research.
The new generation of digital payments is growing rapidly due to changes in consumer behavior, technological advancements and innovation. Accenture's latest global survey reveals that more than half of the population in major markets has used tools such as digital wallets, ranking them above credit cards.
Economic turbulence is driving consumers to seek greater control over their payment options. Card issuers that adopt a timid attitude toward payments innovation could lose $89 billion in revenue over the next three years, according to research.
“While cash still narrowly dominates point-of-sale transactions, digital wallets, account-to-account (A2A) transfer and buy now, pay later (BNPL) are rapidly gaining ground in addition to existing means such as debit and credit cards,” says Javier González Boix, Executive Director for Banking at Accenture Argentina.
The report details that 9% of consumers in the main markets currently use new generation payments, that is, the use of digital wallets, A2A and BNPL, as the main payment option.
Likewise, and with a future projection, this figure will increase to 20% in 2025, strengthening the use of payments through Crypto, biometric technologies, machine-to-machine system, and in the metaverse.
If the local Argentine market is analyzed, according to the “2023 Global Payments Report” published by Worldpay from FIS, during 2022 in the country, 36% of e-commerce payments were made with credit cards; while if new generation payments are counted, they represented 39% of operations, with 28% corresponding to digital wallets.
In terms of projections, by 2026 a 24% increase is expected in the use of new generation methodologies, both those that are established and those that are still being incorporated, such as biometric technology or payments through Crypto or in the metaverse.