Boku’s Report Reveals Shift Towards Localized E-commerce Payments
In a world where «cash is king» and traditional payment methods seem unshakable, the rise of digital payments is reshaping the landscape, as highlighted in The Fintech Times. Boku, a global network for localized payment solutions, has released a new report in collaboration with Juniper Research, shedding light on the evolving trends in e-commerce payments.
The report, titled «2024 Global E-commerce Report: The Changing World of Payments,» surveyed 10,500 consumers across 37 major markets worldwide. It highlights a significant decline in the market share of traditional card payments, as consumers increasingly opt for local payment methods like digital wallets.
Nick Maynard, VP of fintech market research at Juniper Research, commented on the findings, stating, «Our research highlights that against a backdrop of continued strong growth in e-commerce, the global card schemes continue to lose share to regional and local payment methods. This trend is seen globally and across all regions.»
One of the key trends identified in the report is the emergence of account-to-account (A2A) payments, such as PIX in Brazil, UPI in India, and iDEAL in the Netherlands, as the fastest-growing payment method in e-commerce. A2A payments are forecasted to more than double by 2028, accounting for 18% of all e-commerce transactions by volume.
The report also predicts a decline in card transactions, with cards accounting for just 30% of e-commerce transactions by volume in 2028, down from 41% in 2023. Local payment methods, on the other hand, are expected to account for 58% of e-commerce transaction values by 2028, up from 47% in 2023.
Stuart Neal, CEO of Boku, emphasized the changing nature of online transactions, stating, «Our research shows that the way the world transacts online is changing fast, driven by a consumer preference for convenient, seamless payment methods like digital wallets and A2A transfers.»
The report also provides regional insights, highlighting unique trends in Africa & Middle East, Asia Pacific, Europe, Far East and China, Latin America, North America, and the Indian Subcontinent. These insights underscore the importance of localized payment strategies for merchants operating in these regions.
Boku’s report paints a picture of a rapidly evolving e-commerce payment landscape, where local payment methods are gaining prominence, reshaping the way consumers pay for goods and services online.