Alternative online payments poised for global growth, new report says

The latest Alternative Online Payment Methods Market 2024 report from ResearchAndMarkets.com forecasts that the global transaction value of digital wallets is expected to surpass EUR 10 trillion by 2028, nearly doubling from 2023 levels.

This milestone underscores the rapid growth of digital payment methods, which have become increasingly popular following the global shift away from cash during the COVID-19 pandemic. Digital wallets, which allow users to store payment information securely on their devices, have emerged as a leading alternative payment method worldwide, researchers noted.

The report highlights the Asia-Pacific region as a leader in this digital transformation, with China and India at the forefront. In China, nearly half of the adult population used digital wallets daily as of May 2022, while India is on track to see its mobile wallet payment value exceed EUR 5 billion by 2027.

RTP, ATA, BNPL gaining traction

The report also emphasizes the significant growth expected in real-time payments (RTP), a digital cash replacement gaining popularity globally. Latin America, in particular, is set to experience a near quadrupling of real-time payment volumes by 2027, according to the report.

Additional payment options such as account-to-account (A2A) payments and buy now, pay later (BNPL) services are also gaining traction. A2A payments, which utilize open banking technology, are still in their early stages, with just over 5 percent of Europeans reporting regular use as of September 2022. Meanwhile, BNPL services are increasingly favored by younger generations, particularly Gen Z and millennials in North America.

Despite the entry of major players like Apple into the BNPL market with products such as Apple Pay Later (released only in the United States, Apple Pay Later is being replaced by new Apple Pay installment loan features), widespread adoption of these services is expected to take time. However, as online shopping continues to rise globally, consumers are increasingly seeking payment options that are both seamless and secure. This trend is expected to drive further expansion of digital wallets, BNPL services, QR code payments, and instant payments, researchers stated.

The report answers several critical questions, including forecasts for digital wallet transaction values by 2028, variations in e-wallet use across different countries, and projections for the growth of BNPL and real-time payments globally. For more details, visit ResearchAndMarkets.com.

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