Key to Covid as Buyers Embrace Next Generation Payment Methods – Retail Technology Innovation Hub

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With a Covid pandemic, the accelerated adoption of digital wallets and the growing demand for services such as buy now pay later, a robust digital identity and infrastructure will become essential to stay competitive in this new era for payments.

This is what Capgemini’s 2022 report on key payments trends reveals.

Also due to the impact of the pandemic, 2021 has been a year of transition as we move into the new era of 4.X payments, ”the report says.

He adds: “Yes, the sector is undergoing a facelift, triggered by new approaches from new age players and fostered by the consolidation of the sector and the demand for integrated experiences. “

“As customers embrace next-generation payment methods, non-cash transaction volumes increase as the mix of payment instruments moves digitally. Additionally, authentication was – and will continue to be – critical in virtual scenarios, making digital ID infrastructure a hot topic.

The traditional mix (cash, checks, direct debits and transfers) is transforming into a new mix of instruments revolving around digital payments.

The market share of traditional instruments is either stagnant (cards) or decreasing (cash).

Digital wallets are expected to overtake cash and cards as the most popular in-store payment method. They are gaining popularity thanks to their simple, convenient and fast payment capabilities.

The number of mobile wallets in use is on track to reach 4.8 billion by 2025 (up from 2.8 billion in 2020, or nearly 60% of the world’s population).

Globally, contactless in-store payments via the mobile wallet overtook cash and card payments in-store for the first time in 2020. And by 2024, digital wallets will account for one in three in-store transactions. in the world.

By 2024, Capgemini expects cash to account for less than 10% of in-store payments in the United States and 13% of global payments.

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