It is no breaking news that technology has a huge impact on our lives and daily activities. Each time we make a purchase, there is a number of ways to complete our payment, either by using Apple Pay, a digital wallet or simply our phones.
Today’s digital natives, Millennials and GenZ’ers are very familiar with the latest technologies and open to every new payment method, like cryptocurrencies, Apple Pay, Google Pay, and so on. There are 4 types of consumer personas that react differently to the latest payment trends:
- The Pioneers who desire engagement, personalization and have a positive attitude towards financial operations.
- The Skeptics who reject any advice from banks and other financial players.
- The Pragmatics who have a narrow view of banking, but they still want digital services.
- The Traditionalists who are less digital, don’t trust technology and prefer traditional banking products.
What’s your consumer persona?
If you swing between categories, here are some of the latest statistics about modern payments that might help you:
1. The most popular payment method in 2019 is the eWallet, followed by credit cards and debit cards.
2. 2,1 billion people will use an eWallet by the end of 2019.
3. Apple Pay has an estimated 127 million global users, and Google Pay has reached 100 million installs.
4. By 2025, 6 in 10 people will surf the internet on smartphones.
5. By 2022 mobile commerce will represent 70% of e-commerce sales worldwide.
6. 92% of merchants will support more mobile channels.
7. By the end of 2019, cash will be replaced by debit cards as the leading POS payment method, and by 2022, it will be surpassed by credit cards, debit cards and e-wallets.
8. Since the release of Bitcoin, over 4000 altcoins (alternative coins) are on the market.
9. In 2020 Facebook plans to launch Libra, their digital currency.
10. Contactless card payments using NFC without a separate card reader is a solution already piloted in the UK and Poland.
Any thoughts on the latest trends? We are convinced that cash will continue to exist as a means of payment, even though payments are becoming Instant, Invisible and Free. It is just a matter of time until eWallets become more popular and gain the users’ trust, while smartphones are already heavily used on a daily basis.
Constant connectivity is the new state of being - it no longer exists as an on and off switch. As you read this, is your smartphone within reach, or are you actually reading this blog through your smartphone? When you hear about something you don’t know, how long does it take until you Google it in your smartphone? When you are searching for a product, how long do you wait before you look it up online? Why shouldn’t you pay with your mobile, then?
Companies have already understood the role technology plays in our lives and adapt to new payment trends, including in their strategies the possibility of mobile and alternative payments. Consumers like to be in control of their online accounts, and they will prefer to receive their products almost instantly being open to alternative payment methods that offer flexibility, speed, and convenience.
Companies already provide easy and transparent online payment methods. Do you want to find out more about wearable technology, digital and mobile wallets and the advantages for consumers and businesses? You can also read our newest Ebook about the payments of the future.