Card Payments Losing Ground, Expected To Decrease By 19% In 4 Years
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Boku, a global network for localized payment methods, has partnered with Juniper Research to publish the ‘2024 Global Ecommerce Report: The Changing World of Payments’. The initiative examines consumer payment behaviors and preferences worldwide, highlighting a significant shift towards local payment solutions in ecommerce transactions.
Boku Is Poised To Empower Global Merchants With Diverse Payment Options
The Chief Executive Officer of Boku, Stuart Neal, highlights that the team research shows the rapid change in online transactions.
This transaction is driven by consumer preferences for seamless and convenient payment solutions such as account-to-account transfers, direct carrier billing, and digital wallets. He highlighted that the key to merchants’ future global success and growth lies in their capability to offer diverse payment options for their customers.
Boku aims to offer the most prominent merchants access to its global network of localized payment options, enabling users to effortlessly pay for the things they love, regardless of their location.
The report underscores the importance of payment choice for users globally, mainly among mobile-first generations. These generations prioritize the seamlessness and convenience of digital wallets, instant A2A payments, and direct carrier billing. These trends in consumer behavior are revolutionizing the present and possibly extending to adopting older demographics.
Boku Seeks To Transform The Global Ecommerce Landscape
Based on a data analysis from 37 major markets and a survey of 10,500 consumers, the report highlights a decrease in the traditional card payment market share. It also indicated a surge in the use of local payment solutions for online purchases worldwide.
Some significant findings include the rapid surge of account-to-account (A2A) payments like iDEAL in the Netherlands, UPI in India, and PIX in Brazil. These solutions are becoming the fastest-growing payment options in ecommerce.
Global findings report that traditional card payments are anticipated to drop from 31% in 2023 transaction value down to 19% by 2028.
Meanwhile, local payment solutions are anticipated to make up 58% of ecommerce transaction values by 2028, a rise from 47% in 2023, surpassing the transaction value of traditional card payments for the first time.
Additionally, the report also predicted that 37% of individuals all over the world actively engaged will employ local payment methods by 2028.
Non-card-linked wallets and instant A2A are expected to account for more than 50% of ecommerce transaction value worldwide by 2028. With instant A2A payments expected to more than double to constitute up from 8% in 2023 to 18% of all ecommerce transactions by volume by 2028,
