What is the future of digital payments? (2024)

What is the future of digital payments?

GlobalData forecasts a compound annual growth rate of 19.9% for mobile wallet payments with digital wallet usage predicted to reach 60% of the world's population by 2026. Businesses must be prepared to offer a variety of wallet solutions tailored to their customers and target audience.

What will the future of payments look like?

In the U.S. alone, mobile wallets are predicted to overtake physical cards as the most popular online payment method in the next three years. If this trend continues, we anticipate that digital wallets could make credit cards fully digital within the next decade.

What is the forecast for digital payments?

Total transaction value in the Digital Payments market is projected to reach US$3,073.00bn in 2024. Total transaction value is expected to show an annual growth rate (CAGR 2024-2028) of 10.73% resulting in a projected total amount of US$4,620.00bn by 2028.

Will digital payments replace cash?

Even so, digital payments have not yet fully replaced cash. Public demand for cash remains steady, both as a means of payment and as a safe haven. While the digitalisation of payments is a global trend, payment habits still differ across countries.

What is the future of the way we pay?

By 2025, cash will be used in less than 30% of transactions globally. Card payments will still be the most popular form of payment, followed by mobile payments.

What is the future of cashless payments?

More people are using debit cards, bank transfers, and cryptocurrency to pay for goods than ever before. In 2021 alone, there were $989 billion of non-cash transactions, while future estimates predict that $2 trillion of cashless payments will take place every year by 2026.

What will the payment system like by 2050?

In 2050, the payments ecosystem (acquirers, PSPs, facilitators, and aggregators) will revolve around creating integrated capabilities within an ecosystem of partners to truly optimise the customer experience and deliver a seamless, personalised payments journey from awareness to purchase and long-term retention.

What is the future of payments in 2024?

In 2024 we expect more merchants will take pay-by-bank live as part of their cost optimization efforts. While bill pay will continue to be the preeminent use case, acceptance is poised to grow in traditional e-commerce verticals like apparel and marketplaces.

What will digital transformation be in 2025?

In the future we will use digital technology to deliver more responsive policy, less red tape and better services. For people and businesses, this means greater flexibility when dealing with government. You will have better ways of expressing your views and easier ways to engage on issues important to you.

How can AI be used in payments?

How close are we to a cashless society?

The US is moving toward cashless payments, with a substantial increase in the use of mobile wallet apps and contactless cards. A report from the Federal Reserve Bank of San Francisco found that payments made using cash accounted for just 18% of all US payments in 2022.

Should we get rid of cash?

Cash remains essential to millions of Americans who don't have bank accounts. Plus, digital payment systems are linked to your identity. Eliminating cash would mean giving up some of our financial privacy, as the government and data-hungry companies could more easily snoop on our daily lives.

Is cash becoming obsolete?

As people move toward more electronic or digital forms of payment, it might seem like paper money is on its way toward obsolescence. But experts say that cash will always be around.

Will money be replaced in the future?

The future of money is expected to be heavily influenced by technology. Predictions include the rise of cashless societies, the growth of cryptocurrencies, the continued adoption of digital currencies, and the potential offering of a Central Bank Digital Currency (CBDC) by governments.

Is the future of money digital and instant?

As technology advances and consumer preferences shift, the future of money seems to be rooted in the realm of digital and instant transactions. At Worldline, we think that adapting to new forms of digital payment and embracing the advantages they offer, will be essential to thriving in the digital economy.

What is a promise to pay cash in the future?

A promissory note is a written promise to pay a specific amount of money, usually including interest, at a future date. If the note is due within a year it is classified as a current asset.

Will we have cash in 2025?

According to the Payments Observatory 2023 report, in 2021 cash accounted for 17.9% of transaction value at traditional merchants, however, by 2025 the figure is expected to drop to just 9.8%. Thus, following this trend, cash could become obsolete in a projection of approximately 10 years.

Will the US ever become cashless?

When Will Society Become Cashless? While it's impossible to accurately predict when the US will move to a fully cashless society, a Gallup survey reveals that 64% of Americans believe that all payments will become electronic at some point in their lifetime, with the figure jumping to 70% for those under 50.

Why are people against cashless?

A cashless society would rely on a complex network of digital systems, which would be vulnerable to cyberattacks. If these systems were hacked, it could have a devastating impact on the economy. Privacy is the third challenge raised. Cash can be exchanged anonymously, leaving no digital trail.

Will cash exist in 2050?

Although paper-based currencies are becoming less popular, they will likely stick around for the foreseeable future. Dollars and cents may become harder to use, but as with many obsolete technologies, there are enough users to ensure demand doesn't disappear completely.

Will cash be used in 2030?

Analysis from Barclays Investment Bank, meanwhile, predicts that the global transition from cash to digital payments would reach a tipping point moment in 2025, when absolute cash usage would decline from 41 per cent in 2019 to 20 per cent by 2030.

What trends will shape consumer payments in 2024?

Declining Cash Payments

McKinsey's 2023 Global Payments Report indicated a nearly 4 percentage point decline in cash usage last year worldwide. The slow shift away from cash usage is expected to continue in 2024, as consumers opt for more efficient and convenient digital payment alternatives.

What is Fintech predicting for 2024?

2024 will be a year of reckoning for fintech providers. A more difficult macroeconomic environment will see new entrants and established fintech companies prioritize profitability rather than "growth at all costs".

What is an embedded payment?

For now, let's start by defining embedded payments. An embedded payment processor is software that's natively built into an SaaS company's existing suite of products to create a seamless checkout workflow. The provider offers solutions for every aspect of the business, including payment processing.

What is the next booming technology?

Robotic Process Automation (RPA)

Like AI and Machine Learning, Robotic Process Automation is another technology that automates jobs. RPA is the use of software to automate business processes such as interpreting applications, processing transactions, dealing with data, and even replying to emails.