“Digital wallets” increasingly used in retail payments

The use of “digital wallets” has been increasing significantly in the retail sector, according to a Worldpay study, entitled “Global Payments Report 2024”.

Ease of use, accessibility and high security measures are the factors that lead consumers to use more and more digital wallets.

According to the report, digital wallets will represent, in 2023, half of all online transactions and 30% of consumer spending at the point of sale (POS). However, the study anticipates continued growth in this, with digital wallets constituting 49% of all online and POS sales.

The report further concluded that the Covid-19 pandemic served as “a catalyst for the accelerated adoption of digital wallets, pushing them towards the mainstream as consumers looked for contactless payment options.”

Although the digital wallets have gained traction globally, the study highlights the existence of regional variations in payment preferences.

In markets where credit and debit cards have “a strong consumer attachment”, such as the United States of America (USA), consumers tend to connect these cards to their digital wallets. On the other hand, in regions such as Brazil and India, “where economies are mostly dominated by cash and undergoing a transformation towards digital payments, instant payment services are gaining popularity due to the convenience and reliability they offer”, he says. the study.

According to research, the worldwide use of cash is decreasing, with a forecast drop of 6% by 2027.

For Gabriel de Montessus, head of Worldpay’s global companies department, understanding consumer preferences is crucial to driving innovation in payments, having also highlighted the role of digital wallets in simplifying payment experiences, both online and in store.

In this sense, he also called on interested parties in the payments ecosystem “to collaborate to offer greater payment freedom to consumers and merchants”.

The study also highlighted the growing prominence of alternative payment methods such as account-to-account (A2A) transactions, particularly in regions where governments have invested in developing the necessary infrastructure.

In countries such as Brazil, India and the Netherlands, A2A payments “are expected to play a significant role in shaping the future of e-commerce transactions, given the evolving dynamics of the global payments landscape”, says the research. In markets such as the USA and the United Kingdom, the investigation states that they face some challenges in adopting this type of payment as they are markets essentially dominated by cards.

“We are entering an era defined not by technology, but by people, where choice is the main driver of the payments market landscape. Consumers and their collective choices are the new center of gravity for payments, a living force that is encouraging retailers to optimize their payment options,” the study emphasizes.