Smartphones are becoming the new wallet for many consumers
Worldpay from FIS 2020 Global Payments Report revealed that digital wallets are expected to represent half of the global e-commerce sales by 2023. At the same time, “Buy Now, Pay Later” (BNPL) methods will emerge as the fastest-growing online payment preference over the next 5 years.
The study found that although global e-commerce keeps growing to an estimated $5.9 trillion by 2023, the marketplace is changing as digital wallets transform consumer behaviors online.
The urbanization of emerging economies, widescale technological adoption, and spending power of Generation Z consumers are driving the change, according to the report.
In 2019, 22% of in-store purchases worldwide were carried out using mobile or digital wallets, compared to 16% in 2018. Market forecasters believe that more than 1 billion shoppers will make a digital or mobile wallet payment in 2020.
The FIS report unveiled that BNPL is the fastest-growing online payment method in Australia, Brazil, France, Japan, the Netherlands, the UK, and the US. It is set to increase at a 28% compound annual growth rate globally over 5 years. As to Europe, the Middle East, and Africa regions, BNPL usage is expected to grow to 8.9% by 2023.