Breaking Down 2023 Payment Trends: Account-to-Account Growth, Decline of Cash, and the Rise of Digital Wallets

In recent years, we have witnessed a significant shift towards digital payments due to the widespread adoption of technology and increased consumer demand for faster and safer payment methods. As a result, we have seen a rise in account-to-account (A2A) payments, which offer an instant and secure way to send and receive money. In this article, we will take a closer look at the current state of A2A payments, their advantages, and what businesses need to know to stay ahead of the curve in 2023.

Global Growth of A2A Payments in 2022

The expansion of real-time payment systems has played a vital role in the growth of A2A payments across the globe. These systems offer faster, safer, and more convenient payments for consumers at the checkout. According to recent studies, there were almost 70 real-time payment (RTP) schemes providing high-speed payment rails that helped drive A2A payments to account for $525 billion in global e-commerce transaction value, up 13% from the $463 billion in 2021.

The benefits of A2A payments are vast, making them an attractive and affordable option for businesses of all sizes. One of the key advantages of A2A payments is their reduced cost of payment acceptance compared to cards. This cost reduction is due to the absence of intermediaries such as credit card issuers or payment gateways. Moreover, by using A2A payments, businesses can experience instant settlement of funds, boosting their cash flow and improving their financials.

A2A Payments in the US

A2A payments are not limited to the global market. The growth of A2A in the US mirrors the global trend, with A2A accounting for 9% of e-commerce transaction value in 2022. This increasing trend can be attributed to the growing attractiveness of real-time payment systems for consumers and businesses alike.

Global e-commerce continues to witness tremendous growth in consumer transactions. According to recent reports, this trend is not slowing down anytime soon. The global e-commerce transaction value is projected to grow by 10% from 2021 to 2022, reaching nearly $6 trillion. This growth can be attributed to the increasing demand for online products and services.

The Rise of Credit Card-Linked Digital Wallets and POS Financing Offerings

There is no doubt that credit card-linked digital wallets, buy now pay later (BNPL), and other POS financing offerings are the wave of the future. According to a recent study, this trend is projected to rise to 60% by 2026, reflecting the growing popularity of digital transactions.

Digital wallets continue to be the leading payment method globally, accounting for 49% of transaction value in e-commerce and 32% at POS in 2022. This increasing trend is due to the ease of use, security, and faster transaction times provided by digital wallets.

Falling Cash Use Globally

A2A payments and digital wallets are not the only trends impacting the global payment landscape. The use of cash is continuing to decline globally, from 26% of POS transaction value in 2019 to 16% in 2022. This trend is expected to continue as consumers become more comfortable with digital transactions.”

As consumer behavior continues to evolve, businesses must keep up with the changes to remain competitive. Meeting consumer demand for advanced payment features now can help businesses thrive through economic troubles and gain market share from competitors. By leveraging technologies such as A2A payments, digital wallets, and BNPL (Buy Now Pay Later) offerings, businesses can stay ahead of the curve and provide a better customer experience.

Conclusion

A2A payments are here to stay, and businesses need to adapt to remain relevant in 2023 and beyond. With the expansion of real-time payment systems globally, the growth of digital wallets and other POS financing offerings, and increasing cashless transactions, it is crucial for businesses to adapt to stay ahead. By meeting the demands of consumers and staying up-to-date with the latest payment technologies, businesses can create a more seamless and efficient payment experience for their customers, enhancing the chances of long-term success.

Explore more

D365 Supply Chain Tackles Key Operational Challenges

Imagine a mid-sized manufacturer struggling to keep up with fluctuating demand, facing constant stockouts, and losing customer trust due to delayed deliveries, a scenario all too common in today’s volatile supply chain environment. Rising costs, fragmented data, and unexpected disruptions threaten operational stability, making it essential for businesses, especially small and medium-sized enterprises (SMBs) and manufacturers, to find ways to

Cloud ERP vs. On-Premise ERP: A Comparative Analysis

Imagine a business at a critical juncture, where every decision about technology could make or break its ability to compete in a fast-paced market, and for many organizations, selecting the right Enterprise Resource Planning (ERP) system becomes that pivotal choice—a decision that impacts efficiency, scalability, and profitability. This comparison delves into two primary deployment models for ERP systems: Cloud ERP

Selecting the Best Shipping Solution for D365SCM Users

Imagine a bustling warehouse where every minute counts, and a single shipping delay ripples through the entire supply chain, frustrating customers and costing thousands in lost revenue. For businesses using Microsoft Dynamics 365 Supply Chain Management (D365SCM), this scenario is all too real when the wrong shipping solution disrupts operations. Choosing the right tool to integrate with this powerful platform

How Is AI Reshaping the Future of Content Marketing?

Dive into the future of content marketing with Aisha Amaira, a MarTech expert whose passion for blending technology with marketing has made her a go-to voice in the industry. With deep expertise in CRM marketing technology and customer data platforms, Aisha has a unique perspective on how businesses can harness innovation to uncover critical customer insights. In this interview, we

Why Are Older Job Seekers Facing Record Ageism Complaints?

In an era where workforce diversity is often championed as a cornerstone of innovation, a troubling trend has emerged that threatens to undermine these ideals, particularly for those over 50 seeking employment. Recent data reveals a staggering surge in complaints about ageism, painting a stark picture of systemic bias in hiring practices across the U.S. This issue not only affects