- While most retail sales still take place in-store, digital is driving innovation as e-commerce grows.
- Domestic P2P and digital money transfer providers will diversify to attract users and monetize solutions.
- Digitization is dominating B2B and disbursement innovation.
The continued growth of e-commerce 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 retail channel in the United States, both in terms of share and dollars. By the end of 2026, brick and mortar will still account for $4 of every $5 spent in retail, making it an essential investment for payment providers, although less flashy than commerce. electronics and emerging digital channels. In order to retain in-store customers, merchants must expand their accepted payment methods by allowing mobile proximity 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 plan to convert space from cash registers to self-checkouts due to consumer interest, savings potential, and the need to reduce or reallocate Workforce.
Although we expect e-commerce sales to remain above $1 trillion for the second consecutive year in 2023, some changes will need to be made to the shopping landscape to address declining retail sales of computers and computers. desktop computers. As consumers spend more time on mobile devices, smartphones are expected to drive 87.2% of mcommerce sales this year. Due to this rise, payment providers need to invest in their mobile shopping and shopping experience. Social commerce and connected devices are also showing higher adoption rates and are expected to continue to grow over the next few years.
Other payment sectors to watch include domestic payments between people, which more than 3 in 5 smartphone users have adopted despite the high level of fraud; digital discount, which nearly doubled between 2022 and 2027 despite its high fees; B2B payments, which aim to reduce transaction time and go digital; B2C payments, of which about half of the US population received a disbursement in 2022, according to PYMNTS.com; and cross-border payments, which are rebounding from the pandemic despite high inflation rates.
Overall, it is clear that to retain and grow businesses, companies need to focus on digitization and integration. Curious to learn more about payment channels and transaction types? Click here to purchase this report directly from Insider Intelligence. Want more data? Click here to purchase The Payments Ecosystem collection.