Over 80% of US consumers used one or other forms of digital payment in 2021. This is up from 78% in 2020, and 72% in 2015. Here are the 2022 trends for digital payments.
FinTech companies invest their time and effort into finding new ways to take advantage of digital payments. Innovation is the name of the game. Follow this link to stay ahead of digital payment trends. This means looking at every point of contact with the customer and examining consumer preferences, then expanding the ways in which payments can be made.
Two Popular New Products
There are two products that more and more customers are opting for in 2022. The first of these is cryptocurrency. While 74% of consumers understand what cryptocurrency is, so far only 20% hold these assets. However, this is a growing trend and two-fifths of people surveyed were open to acquiring cryptocurrency with more understanding of how it works. Actual payments were made by 21% of respondents for international transactions and to anonymous sellers. Lack of confidence in the dollar and government was cited by 20% of participants as the reason for acquiring crypto.
Thirty percent of Americans have used Buy-Now-Pay-Later (BNPL) to pay for products. Almost a third of this number stated that without this option they would not have made a purchase at all or would have spent less. Almost 40% selected BNPL over a credit card payment and 31% used it instead of cash or a debit card. The most-purchased items utilizing BNPL are IT equipment, clothing, and beauty products.
Eleven percent of consumers do not take a physical wallet with them if the retailers they visit have an option for digital wallet payments or if they are not intending to make a purchase. However, 15% consistently rely on their digital wallet for shopping, thus only taking their mobile device on these outings.
Consumers who utilize a digital wallet noted, in 40% of cases, that they moved between cards depending on which ones had funds in them or to keep different types of purchases separate. Retailers have promoted digital wallets extensively and the majority of survey participants indicated that they had loaded most of their cards to their e-wallets.
As identity theft and fraud continue to increase at an alarming rate, roughly 2.5 million Americans have opted for biometric cards in 2021. This trend is likely to continue in 2022. Biometric authentication is the most secure payment option to date as it makes use of the unique characteristics of individuals. These include vein mapping, heartbeat analysis, iris recognition, facial recognition, and fingerprints.
mPOS is a sales application that is used at the point of payment. A tablet or smartphone becomes the cash register. The only two things that are needed for it to operate are an internet connection and the mPOS platform.
The advantage of mPOS is that it can be used at a restaurant table, farmer’s market, or consumer premises. For example, a pharmacy can deliver prescription medicine to a customer’s home and receive the payment immediately. It is anticipated that by 2023, a quarter of all payments will be made using this method.
Businesses and consumers are looking for safer, more efficient ways to pay for purchases. More trends will continue to emerge.