Written by: Amit Mallick, Managing Director – Global Open Banking & API Lead and Ewa Wojcik, Management Consulting Senior Manager – Banking
Digital payments are gaining popularity as cash usage declines around the world. While card payments still dominate in countries where they have a large incumbent advantage, digital products like payment apps, digital wallets, buy now pay later, and account-to-account (A2A) payments are gaining traction. This trend is driven by changing customer behaviors and reimagined customer experiences, fueling the move to frictionless, embedded finance journeys. In this series, we’ll be looking at the effect these payment trends will have on various industries. But first, we have an overview of what’s happening right now across industries around the adoption of digital payments, and what’s coming in the next few years.
The acceleration of digital payments that began during the pandemic is unlikely to backslide. The current momentum is supported by a range of technical and regulatory innovations that will keep moving things forward in the digital realm. Here are some of the key factors that will fuel the growth of digital payments across industries.
Below are five key actions for businesses to take now to prepare for the future of digital payments. The interplay between the five areas will provide opportunities for the strongest digital payments players in the coming years to move beyond payments and create a dominant platform.