Market Trends of Payments Industry
The Payments have been Sharing wide Traction Owing to Rising Retail Sector
- The retail industry comprises all companies selling goods and services to consumers. The retail industry underwent an enormous transformation, especially during the pandemic, as it accelerated digital offerings and adapted quickly to new customer needs as consumer appetite for retail sales has remained robust. Presently, consumers want to combine the benefits of traditional shopping habits with the convenience of using modern technology, so they can be found shopping online using their tablets or smartphones, or they could also be on the high street in a brick-and-mortar store.
- Thus, retailers are required to provide a hassle-free, seamless experience for the consumer to remain competitive. According to National Retail Federation, 2022 annual retail sales grew by 7% over 2021, totaling USD 4.9 trillion. This growth rate is above the pre-pandemic average annual retail sales growth of 3.6%.
- There are several ways customers could pay for goods in your retail business. Many payment solutions provider companies partner with E-commerce giants for smooth payment checkout solutions. Additionally, many E-commerce giants have already launched their digital wallets to gain more market share, such as AliPay and Amazon Pay. It also results in the growth of the E-commerce market across the world.
- Another payment method popular in online retail is Buy Now Pay Later services offered by most E-commerce giants worldwide. Moreover, real-time payments such as buy now and pay later are becoming a common sight at checkouts across the globe. As partnerships begin among BNLP brands, banks, and digital wallets, BNLP is expected to take a significant share of payments globally.
- The COVID-19 pandemic made a considerable impact on the E-commerce market globally. With brick-and-mortar stores shuttering overnight, shoppers flocked to the Internet to buy their things. The Pandemic accelerated the shift to online shopping supported by digital payment solutions. Furthermore, M-commerce continues to gain traction over the coming years. Technological advances like branded shopping apps, 5G wireless, and social shopping make it easier for people to shop on their phones.
Understand The Key Trends Shaping This Market
Download PDF
Asia Pacific Expected to Witness Significant Growth in the Market
- Asia-Pacific has been the most significant and fastest-growing payments market region over the past few years, owing to the consistently strong growth rate of China's economy and the emerging economy of India, Government initiatives towards digitization, and the growing adoption of E-commerce in the region.
- Moreover, the Asia Pacific payments sector has benefited from extensive fintech activity focused on digitizing small merchants and enhancing overall business efficiency, with many fintech companies launching their digital wallets in the region.
- China accounts for a significant market share within the Asia Pacific region and generates higher payment revenues than any major region globally. Further, major market players such as AliPay and UnionPay are expanding their services across the region with innovative payment solutions.
- Furthermore, the growth of the Asia Pacific is further attributed to the rise of real-time payments in the region. India's real-time payment system generates significant revenue in the India Payments market. The emergence of Buy Now Pays Later services also drives the Asia Pacific payments market. Moreover, increased access to real-time payment rails has fueled rapid growth in bilateral cross-border payment activity: notable in Singapore, Indonesia, and Thailand corridors, an area with significant potential for value-added services.
- The COVID-19 pandemic accelerated reductions in cash usage, particularly in markets such as Indonesia and Thailand, creating new digital revenue opportunities. A solid majority moved permanently to card and digital wallet-based forms.
Get Analysis on Important Geographic Markets
Download PDF
