The rise of digital currencies and the acceptance of central bank digital currencies were some of the important trends we witnessed in 2023.
But what are the major developments to watch in 2024?
Mobile payments, the increasing popularity of “Buy Now, Pay Later” (BNPL) services, and the use of QR code payments represent just a fraction of the new trends expected this year.
In this article, I’ll explore 15 payment trends set to influence the business landscape in 2024.
1. Cashless payments projected to triple by 2030.
More and more people around the world are choosing to make payments without using physical cash.
It’s predicted that the number of cashless transactions will go up by over 80% from 2020 to 2025, reaching almost 1.9 trillion transactions.
By 2030, this number is expected to triple. This trend is interesting because it shows a significant shift in the way we handle money, relying more on digital and electronic forms of payment.
2. Buy now, pay later (BNPL) dominates the spending scene.
For people looking to use buy now, pay later (BNPL) for holiday shopping, many mentioned that the main reason is to control their spending, but not by a large margin.
About 34% of shoppers said managing their spending is the top reason for choosing this option.
However, 31% also pointed out that convenience, usually associated with using a credit card, is another factor.
3. Credit cards maintain a 40% share in POS transactions.
Even with all the digital options, about 30% of online purchases and 40% of in-store transactions are still paid with physical credit cards.
In the U.S. and Canada, more than half of all cards in use are credit cards.
4. Over 90% of central banks push forward with digital currencies.
Digital currencies are becoming a reality as over 90% of central banks are actively experimenting with them alongside physical cash.
If the current pace continues, we could witness operational retail and wholesale central bank digital currencies (CBDCs) in different countries across the world within the next five to ten years.
5. BNPL payments to claim 24% of eCommerce by 2026.
The demand for convenience, speed, and security in financial dealings fueled the shift from traditional to digital transactions.
One interesting trend is the rising popularity of buy now, pay later (BNPL) services.
Projections indicate that BNPL payments will make up around 24% of eCommerce transactions by 2026.
6. 53% favor e-wallets over traditional cash.
53% of survey participants said they prefer using digital wallets over traditional methods like cash or physical cards.
This is particularly common among younger consumers. It seems like this trend will stick around in 2024 as well.
But again some argue that there could be issues with security and privacy in the digital world, which might make some people hesitant to fully embrace digital wallets.
7. What people really do with cryptocurrency.
Even though a large number of people are investing in cryptocurrencies like Bitcoin, only a small percentage actually use them for everyday purchases.
A survey revealed that 77% of individuals consider cryptocurrencies as an investment, while a mere 18% use them for buying goods and services.
So, despite the growing interest in investing in cryptocurrencies, their everyday use for payments is still relatively low.
8. Mobile transactions to hit 79% by 2025.
More people are expected to use mobile payments for almost 80% of their digital transactions by 2025, up from 71% in 2021.
This trend seems likely to continue in 2024. But some argue that privacy and security concerns may slow down this shift, as people worry about their personal information being tied to mobile transactions.
9. QR payments to hit 2.2 billion users.
More than 2.2 billion people are predicted to use QR code payments by 2025, which is about 29% of all mobile phone users around the world.
This trend is likely to continue as QR codes make it easy for people to make quick transactions using their phones.
QR payments are an interesting topic because they offer a convenient way for people to pay without needing physical cash or cards, and this simplicity might contribute to the trend persisting in the future.
10. Biometric payments stall at 36% usage.
Out of different payment methods BNPL and contactless payments, using fingerprints or face scans for payments isn't as popular among consumers.
Even though most people know about this biometric payment technology (91%), only a third of them (36%) have actually used it to buy something.
11. 73% choose digital for seamless healthcare payments.
More and more people prefer to pay their medical bills online, with 73% choosing electronic options over in-person, phone, or mail payments.
Online payments are convenient, allowing patients to easily view and manage bills, check statements, and track payment history.
This trend is likely to continue in 2024 because it reduces the chances of disputes.
12. 42% ready to change providers for smoother payments.
42% of consumers are willing to change or have already changed their healthcare providers just to get a better experience with payments.
Healthcare providers can improve the experience for patients by offering easy-to-understand billing, online payment options, and perhaps clear communication about costs.
If providers address these aspects, it could lead to more satisfied patients and potentially reduce the likelihood of them switching to another healthcare provider.
13. Cashierless checkout takes over with 44% adoption.
In 2022, 36% of businesses started using cashierless checkout, and in 2023, this number hiked up to 44%.
Plus, 21% are thinking about using it in 2024. It seems like more businesses are interested in trying cashierless checkout, and this trend might continue as it becomes a convenient option for both businesses and customers.
One of the driving forces behind this trend, I believe, is the enhanced customer experience.
Cashierless systems reduce waiting times, streamline the checkout process, and provide a frictionless transaction experience.
14. 68% shift towards automatic deductions for premiums.
68% of patients express a desire to set up automatic deductions for recurring premiums.
This trend is likely to persist because automatic payments offer convenience and help individuals stay on top of their bills without manual effort.
In 2024, this preference suggests a growing reliance on automated systems for smoother and more hassle-free financial management.
15. Global fraud hits $49 billion by 2030.
Fraud losses worldwide are predicted to go beyond $49 billion by 2030, and more than one-third of global businesses have already experienced scams like phishing, card testing, and identity theft in 2022.
This trend is concerning and might continue unless there are more sophisticated ways to prevent financial fraud.
It suggests that there's a need for stronger security measures in the future to protect businesses and individuals from financial scams.
Expert Insights on Payment Trends
“In the short term, things are going to be tough – in B2B BNPL, in B2C BNPL, and for businesses in general. You’ll have seen that many B2C BNPL players are currently struggling to stay afloat financially.
These hits are going to be made worse by the fact that we’re almost certainly heading towards a recession and that fintech funding has rapidly dried up over the first half of 2022.”Louis Carbonnier, Richard Thornton, and Sami Ben Hatit, Founders of Hokodo [Source]
“Cryptocurrencies are currently used as a store of value. Crypto payments become more mainstream as governments issue their own digital currencies and pass legislation to regulate them.
We are also seeing larger companies come out supporting crypto-payments as more people own these currencies.”Peter Jensen, CEO of RocketFuel Blockchain