2020 saw a shift in payment methods with the historical preference of credit cards showed signs of receding as debit cards, digital wallets, and Buy now, Pay Later (BNPL) services became more popular. According to the Global Payment Trends Report 2021 by FIS, digital wallets accounted for 44.5% of eCommerce transaction volumes in 2020, up 6.5% from 2019. By 2024, digital wallets are projected to grow an additional 38% over 2020 levels in North America and account for 52% of global payment transaction volume.1
The US has been lagging in digital/mobile wallet adoption when compared to global averages but digital wallets represent 30% of eCommerce transactions, up 24% over 2019 levels. For now, Debit and Credit cards still are the dominant payment methods, though digital wallets are fast catching on.
'Buy Now, Pay Later' grew 215% YOY for the first two months of 2021. Further 30% of Americans have used 'Buy Now, Pay Later' (BNPL)payments in Q3 2021, up from 23% in Q2 2021. It is popular across all demographics, providing a strong alternative to credit.4
Findings by Juniper Research indicate that there is an increase in appetite for new payment methods within eCommerce checkouts, including payments that are being facilitated by open banking ( third-party payment services accessing banking transactions through API) and digital wallet one-click checkout buttons.