The return to post-Covid mobility and the digitization of businesses and PAs will support cashless transactions. But beware of fraud.
From reopening borders that greenlighted the resumption of travel to growing calls for sustainability, we discover the five trends that will shape the digital payments market in 2023, according to Visa.
With Travel, Retail Purchases Grow
With the easing of health measures and the reopening of borders, shopping by foreign tourists has recovered in 63% of the 500 most visited destinations before the pandemic.
Between June and August 2022, the average amount spent per traveler abroad also increased significantly ( +13% compared to 2019) for retail sales, hotels, restaurants and entertainment activities.
Furthermore, considering some borders have yet to reopen, such as China, travel and retail spending will likely continue to grow.
Consumers: Yes To Sustainable Behavior
According to Skift and McKinsey, 40% of global travelers are willing to pay up to 2% more for carbon-neutral airline tickets. Only 14% did. But in 2023, the available options will increase.
Recommerce is gaining popularity, i.e. circular commerce in which rental, recharging, repair, sale, return, and redistribution of goods allow you to make more sustainable choices. 69% of consumers say they choose retailers based on these activities.
Convenience will also play a key role, as in the case of the ability to pay for public transport with a contactless credit, debit or prepaid card or with an enabled payment device. 91% of users expect contactless payments to be part of the travel experience.
B2B Accelerates Digital Payments
The digitalization of business processes will continue accelerating B2B transactions (80% will be digital by 2025) and integrating payment offerings beyond paper checks and invoices. Accounts receivable teams are already experiencing the benefits of sending electronic invoices and receiving digital payments.
Public administrations are also making progress in the digitization of payments, both in the form of disbursements to citizens and to and from agencies as customers. Banks, payment processors, and networks advance possible use cases for virtual cards.
Cryptocurrencies, The Survivor Will See
Given the period of contraction of cryptocurrencies, only projects based on a measured approach and compliant with new technological development will continue to generate significant web3 solutions for businesses and consumers.
Governments, central banks, traditional financial institutions and fintech will focus on programmable money and payments, both in regards to CBDCs and stablecoins or other tokenized fiat currencies.
Critical use cases include streaming payroll and micropayments and cross-border disbursements. Furthermore, more and more brands are leveraging NFT technology for new digital experiences.
Fundamental Security And Trust
The “hybrid” lifestyle work opens new avenues for fraudsters to access sensitive data. 58% of travelers are concerned about credit or debit card fraud. The most recent threat is synthetic identities created by mixing fictitious data with real ones.
While small businesses continue to be targeted for the need for more resources or know-how that prevents them from adopting adequate security tools, advances in user authentication and protection, such as EMV 3D Secure (EMV 3DS), make it more secure real-time global e-commerce.
Also Read: Quantum Computing – Quantum Leap For Digital Payments?
