The recent publication from Hamburg-based desk research company yStats.com titled “Global Alternative Online Payment Methods 2022” shares data on alternative payment methods and their development worldwide. The publication reveals that digital wallets were the most frequently used alternative online payment method post COVID-19 pandemic.
Digital payments continue to grow in presence around the world
Although credit and debit card payments have a significant global presence, alternative methods of payment are leading in multiple countries worldwide, especially following the outbreak of the COVID-19 pandemic. On a global scale, digital wallet was the alternative payment method that became most frequently used after the pandemic, followed by direct bank transfer, prepaid card, pay by invoice, pay-by-installment plan, and cryptocurrencies. The value of digital wallet transactions is projected to increase between 2022 and 2026, reaching a value of trillions of Euros, and QR code payments are also expected to experience a similar growth between 2022 and 2025. In addition, as the adoption of alternative payment methods continues, digital wallets, prepaid cards, BNPL, and bank transfers were all already offered by some online merchants and surveyed online merchants not offering them reported planning to accept them in the future. According to a survey referenced in the yStats.com report, the acceptance of digital payments influenced the store purchasing choice of more than one-third of consumers. Surveyed small businesses also revealed that their acceptance of new payment methods was among areas by which they can grow as of December 2021.
BNPL maintains significant presence in countries worldwide
Another alternative method of payment gaining momentum globally is Buy Now Pay Later (BNPL), with an increasing number of users and a growing share of B2C E-Commerce payments. Among the top BNPL service providers worldwide are Klarna, Afterpay, Affirm, Sezzle, zipPay, and others, as of March 2022. The country with the most E-Commerce websites offering BNPL options was the U.S., followed by Germany, Australia. Furthermore, close to one-half of Australian online shoppers have used BNPL services and, in India, more than one-half revealed they had used the method of payment to complete their online purchase. BNPL sales in India are projected to increase in value reaching billions of Euros and millions of users. In the UK, the most used BNPL services were PayPal credit, Klarna, and Clearpay in both 2020 and 2021, and in Germany Klarna continues to gain popularity, especially among age groups between 16 and 69 years old. The BNPL gross merchandise value in Poland is also projected to increase from 2021 to 2028 at CAGR above 50%, reaching billions of Euros, as spelled out in the yStats.com report.