Account-to-Account Payments Set to Revolutionize Shopping, with E-commerce Payments Reaching $525 Billion Globally: Worldpay from FIS 2023 Global Payments Report
March 23 2023 - 8:00AM
Business Wire
Key facts
- Emerging trend: Account-to-account payments continued to
gain momentum in 2022 to account for US$525 billion in global
e-commerce transaction value.
- Global forecast: Global e-commerce market is set to be
worth nearly US$8.5 trillion in 2026.
- Shift in balance of U.S. payments: For the first time,
digital wallets surpassed credit cards to become the leading
payment method among U.S. consumers shopping online with 32 percent
of e-commerce transaction value in 2022.
In 2022, account-to-account (A2A) payments continued to grow
across the globe, with the expansion of real-time payment systems
helping to provide faster, safer and more convenient payments for
consumers at the checkout, according to a new report released today
from global financial technology leader FIS® (NYSE: FIS).
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The Worldpay from FIS Global Payments Report 2023 examines how
consumers pay today both in-store and online across 40 global
markets. Findings from the 2023 report show that in 2022, there
were almost 70 real-time payment (RTP) schemes providing high-speed
payment rails that helped drive A2A payments to account for US$525
billion in global e-commerce transaction value, up 13 percent from
US$463 billion in 2021.
A2A payments already have business-to-business (B2B) and
person-to-person (P2P) use cases. This research shows A2A is
increasingly a force in person-to-business (P2B) payments. A2A
payments flow directly – and often instantly – from a consumer's
bank account to a merchant's account, helping to drive down the
cost of acceptance for merchants.
“It’s not hard to see why account-to-account (A2A) payments are
gathering momentum. While it is significantly more convenient for
consumers it also brings a host of benefits for merchants,” said
Jim Johnson, President of Worldpay Merchant Solutions, FIS. “A2A
payments can reduce the cost of payment acceptance in comparison to
cards, while offering the instant settlement of funds and boosting
their cash flow. Some merchants are even offering customers
incentives to pay with A2A, which is certainly helping it gain
traction.”
The growth of A2A in the U.S. mirrors the global trend, with A2A
accounting for 9 percent of e-commerce transaction value in 2022.
This is projected to grow to 11 percent in 20261, fueled in part by
consumer use cases arising from the 2023 launch of FedNow, the new
real-time payments network, which will join existing U.S. real-time
payment networks RTP® from The Clearing House and Zelle.
Global Payment Trends:
- The explosive growth in global e-commerce that took place
during the first two years of the pandemic cooled in 2022, but only
slightly, with global e-commerce transaction value growing by 10
percent from 2021 to 2022, to reach nearly US$6 trillion.
- Across the globe, consumers’ use of credit cards remains
strong, with credit card transaction value growing 6 percent in
e-commerce and 12 percent at the point of sale (POS) from
2021-2022.
- Credit demand is also broadening to alternative credit
products: credit card-linked digital wallets, buy now pay later
(BNPL) and other POS financing offerings. BNPL accounted for 5
percent of global e-commerce transaction value in 2022, and is
projected to rise to 6 percent by 2026. POS financing – including
BNPL, retailer financing and bank financing – represented 2 percent
of POS transaction value in 2022, a share it is projected to
maintain through 2026.
- Digital wallets continue to be the leading payment method
globally, accounting for 49 percent of transaction value in
e-commerce and 32 percent at the POS in 2022.
- Digital wallets are projected to remain the leading payment
method across e-commerce (54 percent) and POS (43 percent) in 2026,
with fintechs, banks, neobanks, super apps, Big Tech and device
manufacturers all competing as wallet providers.
- Cash use continues to fall globally, from 26 percent of POS
transaction value in 2019 to 16 percent in 2022. By 2026, cash’s
share of global POS transaction value is expected to fall to less
than 10 percent.
U.S. Payment Trends:
- U.S. consumers continue their long-standing attachment to
cards, with cards accounting for more than two-thirds of POS
transaction value in 2022 (credit cards with 40 percent, debit
cards with 31 percent).
- Debit cards (20 percent) and credit cards (30 percent)
comprised half of e-commerce spend in 2022.
- Despite the popularity of cards overall, digital wallets became
the single leading payment method among U.S. consumers shopping
online in 2022, with 32 percent of e-commerce transaction
value.
- U.S. consumers are turning to wallets, but not turning away
from cards, with 31 percent of U.S. respondents saying they funded
their wallets with credit cards, while 33 percent indicated funding
by debit card.
“Despite the effects of inflation on consumer spending power and
the threat of a global economic slowdown, e-commerce has continued
to grow in all regions and markets,” Johnson added. “Innovation in
payment solutions is running at a hot pace right now, greatly
improving the experience for customers, reducing headaches for
merchants, and unlocking new avenues for growth. Meeting consumer
demand for advanced payments features now can help businesses
thrive through economic troubles, while potentially gaining market
share from competitors.”
About The Global Payments Report
The Worldpay from FIS Global Payments Report 2023 offers a
snapshot of today’s payments landscape: globally, by region and in
40 select markets. The report tracks consumer payments when
shopping online and at the point of sale, identifies key payment
trends, and projects future scenarios for payment method shares as
well as market size. The report’s data was collected using a survey
of 46,000 consumers, secondary research, and extensive validation
by payments experts from each region; the complete research
methodology is published as an appendix to the report. Published
continuously since 2015, the Global Payments Report is an industry
benchmark used by merchants, financial institutions, press and
researchers around the world.
To download the complete copy of the report, please visit
https://www.fisglobal.com/en/global-payments-report.
About FIS
FIS is a leading provider of technology solutions for financial
institutions and businesses of all sizes and across any industry
globally. We enable the movement of commerce by unlocking the
financial technology that powers the world’s economy. Our employees
are dedicated to advancing the way the world pays, banks and
invests through our trusted innovation, system performance and
flexible architecture. We help our clients use technology in
innovative ways to solve business-critical challenges and deliver
superior experiences for their customers. Headquartered in
Jacksonville, Florida, FIS is a member of the Fortune 500® and the
Standard & Poor’s 500® Index. To learn more, visit
fisglobal.com. Follow FIS on Facebook, LinkedIn and Twitter
(@FISGlobal).
_______________________________ 1 Projections are based on FIS’
internal analysis and ongoing consultation and collaboration with
industry experts; please see the full methodology in The Global
Payments Report.
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Kim Snider, 904.438.6278 Senior Vice President FIS Global
Marketing and Communications kim.snider@fisglobal.com
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