Security measures are becoming more important worldwide with the acceleration of digital payments. In fact, the number of those who will be confirming transactions with voice recognition is forecasted to grow at a CAGR of nearly 45% between 2020 and 2025. Read more about the alternative payment market worldwide amid and post-COVID-19 in the new yStats.com publication “Global Online Payment Methods 2021 Post COVID-19”.
The online payments industry worldwide accelerated over the year 2020, prompting merchants and customers to adopt digital payments after the onset of COVID-19. This resulted in the rising usage of digital wallets, with the number of accounts forecasted to grow at a CAGR of over 11% between 2020 and 2025, and the global value of digital wallet spending projected to almost double in 2025. Contactless and E-Commerce payments were predicted to make up a half of total wallet spend by 2025.
One of the most common ways of making online payments globally was via mobile phones, with the value of M-Commerce predicted to increase at CAGR of around 10% from 2020 to 2025 exceeding three trillion U.S. dollars, spurred by the great increase of digital service usage after the onset of COVID-19. QR code payments were also predicted to surge in the number of users and to be used by almost 3 in 10 of all smartphone owners worldwide by 2025, and this was believed to be more pronounced in emerging markets due to the weak card infrastructure.
With the acceleration of online payments, the risk of becoming a victim of fraud also increased. Therefore, the demand in security features rose as well, namely, security issues, biometrics, such as fingerprint, iris, voice and facial recognition, turned out to be crucial for consumers and payment service providers to make online payments more secure, with the value of mobile payments authenticated via biometrics being projected to increase substantially globally from 2020 to reach over three trillion U.S. dollars in 2025. Moreover, in Canada, over 70% of consumers in Canada believed that shopping online increased exposure to fraud. And over 60% of customers claimed that they would feel better if a site had built-in fraud & payment protection as the main factor, which would impact their online shopping comfort level.