埃森哲：支付變得個性化 Payments gets personal - How to remain relevant as consumers seek control

Payments

getspersonal

Howtoremainrelevantasconsumersseekcontrol

Staying

aheadinan

increasingly

complexgame

2PaymentsGetsPersonal|Introduction

IntheaftermathoftheCOVID-19crisis,thetempoofchangeinconsumerbehaviorsandexpectationshashastened.Geopoliticalshifts,acceleratingdigitalizationandsignificanteconomicturbulencearereshapinghowpeoplepayandmove

theirmoney.Atthesametime,thefriction-freeexperiencesofferedbysocialande-commerceplatformsaresettingnewbenchmarksforconsumerpayments.Witheconomicvolatilitygrowing,consumersareseekingmorecontrolovertheirpaymentschoices.

Aspaymentsmethodscontinueto

evolve,consumerswanttopayanywhere,anytime,anyhow.However,thepaymentslandscapeisbecomingincreasinglycomplexandfragmentedwithinnovativedigitalpaymentproviderstakingamuchlargershareofwalletattheexpenseoftraditionalproviders.Ournewreportidentifieswaysleadingbanksandpaymentsplayerscanincreasetheirrelevanceintheconsumertransactionjourneyandcapitalizeonfutureinnovations.

3PaymentsGetsPersonal|ExecutiveSummary

Executive

summary:Capitalizeon

consumer

demand

fortrusted,

friction-free

experiences

Next-generationconsumerpaymentshavebeengrowingatarapidrateduetochangesinconsumerbehavior,advancesintechnologyandregulation,andtheentryofinnovativenewplayersintothepaymentsspace.Risinginflationandhigherinterestratesarealsochangingthedynamicsofthemarketasconsumerslooktoreducecosts.

AnAccenturesurveyof16,000customersin13countriesspanningAsia,Europe,LatinAmericaandNorthAmericafoundthatmorethanhalfofallconsumershaveadopteddigitalpaymentmethodssuchasdigitalwallets,manyofwhichdisplacebanks’brands

fromthecustomerexperience.Traditionalpaymentsmethodsstilldominatemostmarkets,butnext-genalternativesarerapidlygainingshare.

Oursurveyfoundthatconsumersarefrustratedwithcurrentin-personandonlinepaymentoptions.

Slowtransactions,failedpaymentsandalackofmerchantsupportfortheirpreferredpaymentsoptions

areamongtheirbiggestfrustrations.Paymentsprovidersneedtoofferfrictionlessexperiencesorrisklosingcustomerstoplayersthatoffermoreflexibility,speedandeaseofuse.

Furthermore,whileconsumerstrusttheirbanksmorethanotherpaymentsplayers,theyareopentonovelwaystopay.Indeed,athirdofconsumersthatusecreditcardsastheirprimarypaymentmethodforin-personshoppingareconsideringorarewillingtoswitchtoalternativepaymentmethods.Halfofthemplantoswitchtonon-interest-chargingmethodsastheyseektoreducedebtinterest.

AnAccentureanalysissuggeststhatcard-issuingbanksthattakeatimidapproachtopaymentsinnovationcouldloseouton4.6%oftotalglobalcardandonlinepaymentsrevenues,or$89billion,inthenextthreeyears.Conversely,banksthatrethinktheirstrategiesandcapitalizeonconsumers’trustintheirstabilityandsecuritycouldexpandrevenuesandmarketshare.

Paymentsleaderscangetanedgebysupportingtheircustomers’desireformorecontrolandlessfrictionintheirpaymentsexperiences.Theyhaveanopportunitytopositiontheirbrandsfront-and-centerinpaymentsonceagain.Inaddition,theseplayerscanmaximizepaymentsliquidityandtransactionvolumestoensuregrowthandprofitabilityinahigherinterestrateenvironment.

Leadingbankswillnotonlyenhancetheirrelevanceanddriverevenuesfromnewproducts,butalsocreateopportunitiestooffervalue-addedservicesandrevenuesthatcementcustomertrustanddrivehigherlevelsofengagement.Newmarketentrantssuchasfintechsandbigtechs,too,canunlockopportunitiestodriverevenuegrowthandclosercustomerrelationshipsthroughfrictionlesspayments.

Thefuture

isdigital,

evenfor

face-to-face

payments

4PaymentsGetsPersonal

5PaymentsGetsPersonal|Thefutureisdigital,evenforface-to-facepayments

Present

Past

Next-genpaymentmethodsaregainingshare

Traditionalpaymentsmethodsstilldominatetheconsumerpaymentslandscape,withoursurveyshowinghighusageofcash,debitandcreditcards.However,next-generationofferingssuchasdigitalwallets,account-to-account(A2A)andbuynow,paylater(BNPL)arerapidlygainingshare—andmoredisruptionisincomingfrombiometrics,machine-to-machineandmetaversepayments.

Whenweaskedconsumerswhichnext-generationpaymentstheyuseatleastfivetimesamonth,wefoundthat56%usedigitalwallets,10%useA2Apaymentappsand6%useBNPL.Manyoftheseandotherinnovationswerecreatedbynewmarketentrantssuchasfintechsandbigtechsinresponsetoemergingandunmetconsumerdemands.Incumbentsthusfacebotharisingthreatandabuddingopportunity.

Figure1.Thepaymentslandscapeyesterday,todayandtomorrow.

Future

Cash,Card,Check

Cash,Card,Check,E-commerce,Digitalwallet,Account-to-Account,BNPL,Crypto

Cash,Card,Check,E-commerce,

Digitalwallet,Account-to-Account,

BNPL,Crypto,Biometric,

Machine-to-Machine,Metaverse

6PaymentsGetsPersonal|Thefutureisdigital,evenforface-to-facepayments

Source:AccenturePaymentsSurvey,2022

NorthAmerica

Asia-Pacific

LatinAmerica

Global:

22%

66%

64%

56%

20%

10%

28%

35%

10%

17%

9%

6%

12%

5%

6%

72%

68%

65%

31%

26%

22%

13%

62%60%

63%59%

54%53%

43%

8%

6%

4%

1%

64%

59%

45%

41%

Figure2.Cashisstilldominant,butdigitalwalletadoptionissoaring.

Q:Whichofthefollowingpaymentmethodsdoyouuseatleast5timespermonth?

48%

77%

76%

Cash

Debitcard

BNPL

DigitalwalletCreditcardBanktransferDirectdebitA2Aapps

Europe

UsageofTraditionalPaymentMethods

Adoptionofnext-generationpaymentmethodsvariesbyregion

duetoregulationandcompetition.Asia-PacificandLatinAmerica

areearlyadopters,whileNorthAmericanandEuropeanconsumers

prefercash,cardandbanktransfers.

Figure3.Next-generationpaymentmethodadoptionbyregion.

High

North

America

Latin

America

Europe

Asia-Pacific

High

Low

UsageofNext-GenerationPaymentMethods

Note:CirclesizereflectsGDP

Source:AccenturePaymentsSurvey,2022;TheWorldBank,2022

7PaymentsGetsPersonal|Thefutureisdigital,evenforface-to-facepayments

Figure4.Creditcardusersswitchingin-personpaymentmethodduetoinflationandrisingrates.

Q:Wouldasignificantincreaseinthecostoflivingcauseyoutoswitchtoanotherpaymentmethodforin-personshopping?

Ifso,whatwouldbeyourpreferredmethod?

Preferredalternative

paymentmethods

Consumerswhoprefercreditcards

whenshoppingin-person

21%Debitcard

17%Cash

12%BNPL

Switching

tootherpaymentmethod,

31%

Notswitching,

69%

4%Prepaidcard9%A2Aapps9%Banktransfer11%Bankingapp9%Digitalwallet

4%Check4%Crypto

Methodsthatreduceinterest

MethodsthatreduceinterestandofferconvenienceandcontrolMethodsthatofferconvenienceandcontrol

Source:2022AccentureGlobalConsumerPaymentsSurvey

8PaymentsGetsPersonal|Thefutureisdigital,evenforface-to-facepayments

Macroeconomicconditions,especiallyinflationandrisinginterestrates,playasignificantroleinconsumerpaymentspreference.Nearlyathird(31%)ofrespondentswhousecreditcardsastheirprimarypaymentsmethodforin-personshoppingareconsideringswitchingtootherpaymentmethods.Halfofthesearelookingtoreducetheirinterestexpensesbychoosingdebitcard,cash,BNPLorprepaidcard.Theotherhalfareplanningtoswitchbecausetheyprefertheconvenienceorcontrolofbankingapps,digitalwalletsorA2Aappsforpayments.

9PaymentsGetsPersonal|Thefutureisdigital,evenforface-to-facepayments

Thechannelandsizeofthetransaction

influencehowconsumerschoosetopay

Figure5.Next-genpaymentsastheprimaryin-personmethodarelikelytogrowinthreeyears.

Q:Doyoucurrentlyprefertousetraditionalornext-generationpaymentmethods?Whichdoyouexpecttobeusinginthreeyears’time?

By2025

Today

20%

Next-gen

Methods

9%

TraditionalMethods

91%

80%

Note:Traditionalpaymentmethodsincludecash,cards,checkandbanktransfers,whilenext-generationpaymentmethodsincludedigitalwallets,account-to-accountpayments,BNPLandcryptopayments.

Source:2022AccentureGlobalConsumerPaymentsSurvey

Oursurveyfoundthatnext-generationpaymentshavetakenoffintheonlineworld—20%ofrespondentsuseoneormorenext-genmethodsfore-commerce,especiallyforsmallpurchases.Butasimilartrendisaffectingtherealworld—9%ofconsumersusethesemethodsastheirprimarywaytopayforface-to-facetransactions.Thisnumberisexpectedtodoubleinthenextthreeyears.

Inmostterritories,consumerstendtoprefertousecashanddebitcardsforsmallerin-personpurchasessuchasgroceries,clothesandtransportation.AhigherpercentageofconsumersinAsia-Pacificusedigitalwalletsforsmallpurchasesthanintheotherregions.Forlargerface-to-facepurchasessuchasappliancesandtravel,consumerstendtousecards,especiallycreditcards.

Next-genpaymentmethodsarewidelyusedforonlinepurchases,especiallyforsmall-ticketitemsinEuropeandAsia-Pacific.ButcardsarestillpreferredbythemajorityofconsumersintheUS.

Source:AccenturePaymentsSurvey,2022

3%

16%

15%

28%

22%

28%

18%

16%

12%

Figure6.Topprimarypaymentmethodsforsmall-ticketitems.

Credit

card

Direct

debit

Debit

card

Digitalwallet

Bank

transfer

32%

Debit

card

Credit

card

Digital

wallet

Direct

debit

Bank

transfer

Other

25%

Debit

card

Cash

Credit

card

Other

Digitalwallet

A2A

apps

33%

Cash

Debit

card

Credit

card

Other

Digitalwallet

38%

24%

23%

32%

34%

23%

27%

17%

9%

4%

5%

Forsmall-ticketin-personpurchases,cashanddebitcardsareusedinmostregions,whileAsia-Pacifichasahigherusageofdigitalwallets(18%).Next-genpaymentsarewidelyusedacrossmostregionsforsmallonlinepurchases,especiallyinEuropeandAsia-Pacific,wheredigitalwalletsaccountfor16%and22%respectively.

Other

7%

11%

North

2%

4%

America

8%

Europe

1%

A2A

2%

A2A

1%

A2A

apps

2%

apps

apps

Direct

debit

Digitalwallet

Bank

transfer

Credit

card

Debit

card

Credit

card

Direct

debit

Bank

transfer

23%

Cash36%

Cash46%

Asia-Pacific

22%

Debit

card

21%

Debit

card

Credit

card

17%

Latin

America

18%

Digital

wallet

15%

Debit

card

16%

Credit

card

Other

Other6%

14%

8%

11%

Digitalwallet

Digital

wallet

1%

Other

6%

4%

Other

A2A

apps

2%

1%

A2A

apps

A2A

apps

Online

A2A

apps

4%

3%

In-person

10PaymentsGetsPersonal|Thefutureisdigital,evenforface-to-facepayments

Note:‘Other’includeschecks,cryptocurrency,pre-paidvouchers,banks’apps,banktransfersandbuynow,paynow.

Source:AccenturePaymentsSurvey,2022

11PaymentsGetsPersonal|Thefutureisdigital,evenforface-to-facepayments

Note:‘Other’includeschecks,cryptocurrency,pre-paidvouchers,banks’apps,banktransfersandbuynow,paynow.

55%

28%

8%

5%

2%

1%

card

Other

Cash

Digitalwallet

A2A

apps

18%

6%

5%

5%

North

America

LatinAmerica

1%

Credit

card

Direct

debit

Credit

card

Debit

card

Cash

50%

Debit

card

11%

Bank

transfer

Other

Digitalwallet

A2A

apps

11%

39%

34%

14%

7%

3%

2%

A2A

apps

Debit

card

Credit

card

Other

Digital wallet

Cash

A2A

apps

Asia-Pacific

4%

A2A

apps

A2A

apps

Figure7.Topprimarypaymentmethodsforbig-ticketitems.

45%

Credit

card

Debit

card

Direct

debit

Digitalwallet

Bank

transfer

Other

Credit

card

20%

Debit

52%

15%

25%

12%

8%

Other

5%

2%

Digital

wallet

5%

1%

A2A

apps

3%

In-person

28%

Credit

Debit

card

Credit

card

Other

card

Debit

22%

card

14%

Direct

debit

12%wallet

Digital

Cash

Bank

12%

Digitalwallet

A2A

apps

transfer

Europe

10%

Other

2%

28%

28%

22%

11%

8%

2%

Online

Forface-to-facepurchasesoflargerproductsandservices(appliances,travel,homerepairetc.)wefoundthatcashisreplacedbycards,especiallycreditcards—whicharepreferredby55%ofUSconsumers.Consumersacrossallregionshaveahigherpreferenceforusing

traditionalcardsforlarger

onlinetransactions.

25%

Credit

card

19%

Direct

debit

Debit

19%

card

13%

Digital

wallet

Bank

12%

transfer

8%

Other

Digitalwallets:

themostpopular

next-generation

paymentsoption

Sincethey’reoftenusedtodigitizeaconsumer’sexistingdebitorcreditcard,digitalwalletsstraddletheworldsoftraditionalandonlinepayments.Threeoutoffour(75%)digitalwalletsarelinkedtoacreditordebitcardandusetraditionalcardrailsratherthanreplacingthem.Theintroductionofaconvenientnext-generationexperienceontopofacardwhichthecustomeralreadyownshashelpedtodrivesignificantadoption.

Consumerswhoparticipatedinoursurveyarealreadymakingmoreuseofdigitalwalletsthancreditcards.Morethanhalf(56%)ofrespondentsusedigitalwalletsmorethanfivetimesamonthtotransact,comparedto48%whousetheircreditcardsthatoften.Most(60%)consumerswhousedigitalwalletsusemorethanone,duetoindividualusecasesofferedbywalletproviders.

Walletsfrommajorretailersorhospitalitybrands,forexample,offerperkssuchasloyaltyrewardsandmayonlybeusedtopurchaseproductsandservicesfromthosebrands.WalletssuchasPayPal,ApplePayand

GooglePaycanbeusedatafarwiderrangeofmerchants.Muchoftheinnovationindigitalwalletshasbeendrivenbynon-banks,suchasthebigtechs.

12PaymentsGetsPersonal|Thefutureisdigital,evenforface-to-facepayments

Whatisadigitalwallet?

Adigitalwalletisanapplicationthatallowsyoutopayfromamobiledevicesothatyoudon’tneedtocarryyourcardsaroundwithyou.Itsecurelystoresyourpaymentinformationandpasswords.Youenterandstoreyourcreditcard,debitcard,orbankaccountinformationonyourphoneortablet.Youcanthenuseyourdevicetopay.Digitalwalletsrequireyoutoconnecttoadebitorcreditcardortotopupyouraccountwithfunds.Youauthenticatepaymentsusingbiometrics,apasscodeoraone-timePIN.

Majordigitalwalletplayersarecontinuouslyexpandingtheirsolutionstobe

morecompetitive.PayPal,forexample,hascometomarketwithaBNPLsolution.Inthethird

quarterof2022,itprocessednearly$5billioninBNPLvolume,up157%fromtheprioryear.1

FintechslikeRevolutarealsodrivinginnovation.Revolutoffersasingleappthatenables

userstoexchangecurrencies,sendmoneythroughsocialnetworksandspendwith

amulti-currencycardeverywhereMastercardisaccepted.

Thepioneersindigitalwalletsarecontinuingtoinnovate,addingnewproductsandvaluedservicestotheirwalletsinanefforttogrowtheirshareoftheircustomers’spend.Apple,forinstance,hasaddedadigitalcardtoApplePay.ApplePayisalsoacontenderintheBNPLmarketandhasrolledouttap-to-payfeaturestocompetewithothercontactlesspaymentproviders.

Theearlymoversmanagedtosecureastrongfootholdinthemarketstheytargeted(Figure8).ExceptforPayPal,fewplayershaveestablishedthemselvesasmajorcontendersinmorethanoneortwomarkets.Today,PayPalisusedby60%ofrespondentsinGermany,51%inMexicoand42%inAustralia.

13PaymentsGetsPersonal|Thefutureisdigital,evenforface-to-facepayments

14PaymentsGetsPersonal|Thefutureisdigital,evenforface-to-facepayments

Bigtechs

andfintechs

haveedged

aheadin

digital

wallets

Swish51%,PayPal27%,Klarna23%

InteracOnline10%

Germany

PayPal60%,

France

PayPal39%,

USA

PayPal35%,

Klarna16%,ApplePay7%

ApplePay9%,GooglePay4%

ApplePay12%,Venmo11%

Mexico

PayPal51%,Mercado22%,GooglePay8%

China

WeChatPay82%,Alipay79%,PayPal6%

Italy

PayPal50%,ApplePay6%,GooglePay6%

Australia

PayPal42%,ApplePay13%,AfterPay12%

Brazil

PIX69%,PayPal36%,PicPay22%

Spain

PayPal41%,Bizum28%,GooglePay

India

GooglePay71%,

AmazonPay48%,PayPal30%

10%

Figure8.Theshareofconsumerswhousethetopthreenext-generationpaymentmethodsineachmarketatleastfivetimesamonth.

UK

PayPal46%,

ApplePay17%,

GooglePay10%

Canada

PayPal28%,ApplePay13%,

Sweden

Source:2022AccentureGlobalConsumerPaymentsSurvey

35%

Account-to-account(A2A):

Anemergingalternativetocardpayments

Figure9.Theshareofconsumersineachmarketwhouse

account-to-accountpaymentatleastfivetimesamonth.

Global:10%

Europe

12%

NorthAmericaAsia-PacificLatinAmerica

6%

5%

Source:AccenturePaymentsSurvey,2022

WhatisA2A?

Account-to-accountpaymentinvolvesmovingmoneydirectlyfromoneaccounttoanotherwithouttheneedforadditionalintermediariesorpaymentinstrumentssuchascards.

15PaymentsGetsPersonal|Thefutureisdigital,evenforface-to-facepayments

OursurveyrevealsthatA2Aadoptionisrapidlyrampingup,with10%ofallrespondentsusingthemethodatleastfivetimesamonth.

A2Apaymentsarelightlyregulatedorunregulatedinmanymarkets.Thismeansthereisahigherriskoffraudthanwithtraditionalpayments.

Despitehigh-profilesocialengineeringandphishingscamsonA2Aservices,consumersarewillingtotaketheriskbecauseA2Apaymentsarefastandconvenient.Fromamerchantperspective,A2Atransactionfeesarelowerthanthoseofcards.

AtrendtowatchforisA2Aenablingunderbankednationstoimprovefinancialinclusion,leapfrogcardsandmovedirectlytodigitalwalletsforthemassmarket.ConsiderthehighlevelsofA2AusageinLatinAmerica,wherecashwastraditionallykingbecauseofthehighcostsassociatedwithcardsandalternativepaymentmethods.

In2020theCentralBankofBrazillaunched

anA2ApaymentssystemcalledPIX.2

MerchanttransactionfeesforPIXareonly0.22%

comparedto1%fordebitcardsand2.2%for

creditcards.Twoyearslater,69%ofBrazilians

reportthattheyusePIXatleastfivetimesamonth.

NationswhereA2Aadoptioncouldfollowasimilar

trajectoryincludeIndiaandMexico.

ResponsibleBNPL:

Bringingrobustvettingto

anunregulatedsegment

Buynow,paylateristhedigitalevolutionoftheinstallmentandlaybypaymentsoptionsthatsomeretailershaveofferedforyears.BNPLhashighconsumerappealbecauseithelpspeoplestretchtheirbudgetsandshieldsthemfrominterestpayments.

OursurveyrespondentssaidtheywoulddoubletheirusageofBNPLforonlineshoppinginthenextthreeyears.Some40%ofrespondentssaidtheywouldbemorewillingtoadoptBNPLifitwasprovidedbytheirprimarybank.Inresponsetodemand,incumbentslikeJPMorganChase3intheUSandTDBankinCanada4aredippingtheirtoesinthewater.

BankstendtochargeinterestontheirBNPLofferings,albeitatalowerratethanontheircreditcards.Butbanks’entranceintoBNPLcouldbringmorestabilitytoasectorthatismostlyunregulated.Byapplyingrobustvettingandcreditscoringcriteria,bankscanhelppreventconsumersfromoverextendingthemselves.

Forbanks,BNPLembeddedintocardsorasastandaloneproductrepresentsanopportunitytopromotefinancialwellbeingandhelptheircustomersoptimizetheirfinancesviaresponsiblelending.Withconsumerslookingtoreduceinterestpaymentsatthistimeofrisinginflationandinterestrates,BNPLcouldbeacompellingwayforbankstoexpandtheirproductset.

16PaymentsGetsPersonal|Thefutureisdigital,evenforface-to-facepayments

6%62%

40%

ofconsumersalreadyuseBNPL

atleast5timesamonth

ofcurrentBNPLusersthinkit

couldreplacetheircreditcards5

ofconsumerswouldbemorewilling

touseBNPLifprovidedbytheirprimarybank

Source:2022AccentureGlobalConsumerPaymentsSurvey

WhatisBNPL?

Buynow,paylaterisashort-termfinancingoptionthatoffersconsumersthecredittheyneed,oftenattheonlineorphysicalpointofsale,tomakepurchaseswithoutimmediatepayment.Thecreditisusuallyrepaidininterest-freeinstallments,withfeesincurredonlyiftherepaymentislate.

17PaymentsGetsPersonal|Thefutureisdigital,evenforface-to-facepayments

Oneclickinamobilewalletwithoutinvolvingathird-partyprovider

Moreaffordable/favorableexchangerate

Moreconvenientforthereceivertogetthefunds

Mybankrecommendsanalternativemethod

Thealternativemethodclearsinreal-time

Consumersareconsideringalternatives

forcross-borderpayments

Mostconsumersstillusetraditionaloptionssuchasbanktransfers

(45%)andtraditionalmoneyremittanceproviders(33%)for

cross-borderpayments.However,theyareincreasinglywillingtoconsideralternativesthatarefaster,easier,moreconvenient,andmoreaffordable—forexample,moneyremittancemobileapps(usedby10%ofoursurveyrespondents)orfintech-providedpeer-to-peerapps(10%).

InsomegrowthmarketslikeBrazil,weseehigheradoptionoffintechpeer-to-peerapps,with29%ofconsumerspreferringthismethodcomparedtothe36%whofavortraditionalbanktransfers.Thesesolutionsofferalifelinetounbankedpopulationsingrowthmarketswhotraditionallyusecashtosendmoneyabroad.

Formanybanks,remittancesareanunprofitablesectordueto

smallvolumes;insomecountries,bankshaveexitedthespace.

Forconsumersinemergingmarkets,fintechapplicationsarefasterandmoreaffordable.Theyalsoofferpeopleinremoteareasafinancialservicetheymaynototherwisebeabletoaccess.

Amongourrespondents,oneinfiveclaimtoowncryptocurrencies.Consumersboughtcryptoforseveralreasons:asalong-terminvestment,outofcuriosityorforspeculation.However,17%boughtthemtohaveaccesstoanalternativepaymentmethod,and12%claimtheyuseitforcross-borderpayments.

Figure10.Reasonsmostlikelytopersuadeconsumerstoswitchtoanext-gencross-borderpaymentsoption.

Q:Whichofthefollowingfactorswouldconvinceyoutochangethemethodyouuseforcross-borderpayments?

19%

18%

16%

15%

15%

Source:AccenturePaymentsSurvey,2022

Figure11.Thereasonswhyconsumersboughtcryptocurrencies.

Q:Whydidyoudecidetopurchasecryptocurrency?

Asalong-terminvestment28%

Outofcuriosity

22%

Forshort-termspeculation/tradingpurposes

21%

Tohaveaccesstoalternativepaymentmethods

17%

Useforcross-borderpayments12%

Source:2022AccentureGlobalConsumerPaymentsSurvey

Therecentvolatilityincryptocurrenciescouldslowdowntheiradoption,atleastuntilthemarketbecomesmoreregulated.Centralbankdigitalcurrencies(CBDCs)couldeventuallyemergeasanalternative,butlarge-scaledeploymentisyearsaway.

AccordingtodatafromtheAtlanticCouncil,105countries,representingover95%ofglobalGDP,areexploringaCBDCand10countrieshavefullylaunchedadigitalcurrency.6YetalackofstandardizationandthecomplexityofharmonizingregulationsacrossjurisdictionsmayimpedeusageofCBDCsforcross-bordertransactions.

18PaymentsGetsPersonal|Thefutureisdigital,evenforface-to-facepayments

Whatarethedifferenttypes

ofdigitalcurrencies?

Acryptocurrencyisatokenonadistributedconsensusledgerthatrepresentsamediumofexchangeandaunitofaccount.Itcanbeobtained,stored,accessedandtransactedelectronically,facilitatingpeer-to-peertransactionswithoutgoingthroughanintermediary.Astablecoiniscryptocurrencydesignedtohavearelativelystableprice,typicallythroughbeingpeggedtoacommodityorcurrency.Acentralbankdigitalcurrency(CBDC)isthedigitalformofacountry’sfiatcurrency.

Thefutureiseven

moreseamless,butcontrol

remainsimportant

Evenwhenconsumersarepayingin-person,paymentsareincreasingly

becomingafullydigitalexperience,withnewtechnologiessuchas

biometricsandmachine-to-machinepaymentsremovingevenmorefriction.

Whilestillinitsinfancyasatransactionalchannel,themetaversecouldalso

createnewopportunitiesandbringdisruptiontothepaymentsecosystem.

Amongourrespondents,42%agreedbiometricswillbewidelyusedby

2025and9%saidtheywouldbewillingtouseitastheirprimarymethod

ofin-personpaymentby2025ifitwereavailable.Weestimatethiscould

represent$5.2trillionintransactionvalue.TrailblazerssuchasAmazon,

withitspalmrecognitionpaymentssolution,arealreadypreparingfor

thisfuture.7

Machine-to-machine(M2M)paymentsareautomated,real-timepayments

betweenconnecteddevicessuchasdigitalwallets,smarthomedevices

orautonomousvehiclesthatrequireminimalornohumanintervention.

Anexampleisaconnectedcarpayingforgas,batterycharging,orparking

fromadigitalwallet,withoutthedrivergettingouttopresentacard.

19PaymentsGetsPersonal|Thefutureisdigital,evenforface-to-facepayments

Infact,manyconsumersarealreadymakingsmallautomatedpurchases,

suchaspayingtollswithatransponderfittedtotheircar.Amongourrespondents,42%saidtheywoulduseM2Mpaymentforlowvalue