[[{"@context":"http:\/\/schema.org","@type":"Organization","logo":{"@type":"ImageObject","url":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-new-2x.png?_=1","height":"96","width":"500","@id":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-new-2x.png?_=1"},"name":"The Future of Customer Engagement and Experience","sameAs":["https:\/\/podcasts.apple.com\/us\/podcast\/a-call-for-a-better-experience\/id1479742201","https:\/\/twitter.com\/FutureOfCEC","https:\/\/www.linkedin.com\/groups\/4844282","https:\/\/www.the-future-of-commerce.com\/feed\/"],"additionalType":"https:\/\/www.wikidata.org\/wiki\/Q1193236","url":"https:\/\/www.the-future-of-commerce.com\/","description":"Relevant, timely information & analysis on commerce trends, both consumer-facing and B2B.","@id":"https:\/\/www.the-future-of-commerce.com\/"},{"@type":["Article"],"@id":"https:\/\/www.the-future-of-commerce.com\/2022\/04\/14\/online-payment-trends-to-follow\/#Article","@context":{"@vocab":"http:\/\/schema.org\/","kg":"http:\/\/g.co\/kg"},"url":"https:\/\/www.the-future-of-commerce.com\/2022\/04\/14\/online-payment-trends-to-follow\/","publisher":[{"@id":"https:\/\/www.the-future-of-commerce.com\/"}],"author":[{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/04\/14\/online-payment-trends-to-follow\/#Article_author_Person","image":[{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/04\/14\/online-payment-trends-to-follow\/#Article_author_Person_image_ImageObject","url":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/uploads\/2022\/02\/crystal-150x150.jpg"}],"sameAs":"https:\/\/www.linkedin.com\/in\/cbedell\/","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/crystal-bedell\/","name":"https:\/\/www.the-future-of-commerce.com\/contributor\/crystal-bedell\/"}],"subjectOf":[{"@type":"FAQPage","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/04\/14\/online-payment-trends-to-follow\/#Article_subjectOf_FAQPage","mainEntity":[{"@type":"Question","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/04\/14\/online-payment-trends-to-follow\/#subjectOf_FAQPage_mainEntity0","name":"Online payment trends: Keeping up with consumer demand","acceptedAnswer":[{"@type":"Answer","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/04\/14\/online-payment-trends-to-follow\/#subjectOf_FAQPage_mainEntity0_acceptedAnswer_Answer","text":"Digital payments were already growing at a rapid clip before COVID hit, but skyrocketed during the pandemic. In 2021, 82% of Americans used digital payments, up from 72% five years ago, according to a <a href=\"https:\/\/www.mckinsey.com\/industries\/financial-services\/our-insights\/banking-matters\/new-trends-in-us-consumer-digital-payments\" target=\"_blank\" rel=\"noopener\">McKinsey &amp; Co. report<\/a>.<span style=\"color: #397a4a;\"><span class=\"h3\">Online payments options have grown far beyond credit and debit cards. Consumers today flexible payment options and seamless transactions, and fintech companies are answering that call.<\/span><\/span>\n<li><strong>Payment services and apps (e.g., Paypal)<\/strong><\/li>\n<li><strong>Digital wallets<\/strong><\/li>\n<li><strong>Cryptocurrency<\/strong><\/li>\n<li><strong>Buy now, pay later<\/strong><\/li>\n<li><strong>Omnichannel payments<\/strong><\/li>\n"}]},{"@type":"Question","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/04\/14\/online-payment-trends-to-follow\/#subjectOf_FAQPage_mainEntity1","name":"Paypal led the way in online payments","acceptedAnswer":[{"@type":"Answer","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/04\/14\/online-payment-trends-to-follow\/#subjectOf_FAQPage_mainEntity1_acceptedAnswer_Answer","text":"<span style=\"color: #397a4a;\"><span class=\"h3\">PayPal is a prime example of fintech innovation. The service integrates with e-commerce sites to allow consumers to pay directly from a cash balance maintained in their account, draw funds from another source like a credit card or bank account, or even finance their purchase \u2013 all with a couple clicks.<\/span><\/span>Consumers don\u2019t even have to enter their shipping address because it\u2019s already saved in PayPal.Numerous other fintech services have made it to market since PayPal\u2019s debut in 1998. Amazon followed suit with Amazon Pay, a digital payment processing service that allows consumers to pay online using their Amazon payment methods on third-party websites. Amazon Pay uses the details stored on the shopper\u2019s Amazon account to complete the transaction and provide a seamless checkout experience.Venmo and Zelle are among the many other payment services available today."}]},{"@type":"Question","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/04\/14\/online-payment-trends-to-follow\/#subjectOf_FAQPage_mainEntity2","name":"Digital wallets &amp; cryptocurrency","acceptedAnswer":[{"@type":"Answer","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/04\/14\/online-payment-trends-to-follow\/#subjectOf_FAQPage_mainEntity2_acceptedAnswer_Answer","text":"Digital wallets and one-click checkout buttons are rising in popularity due to their ease of use and prevalence. All smartphones are now equipped with a digital wallet, which enables users to store details for multiple payment types, including credit and debit cards.Users don\u2019t have to carry those individual items or share sensitive financial data. Instead, digital wallets like Apple Pay uses tokenization to securely transmit the information.<span style=\"color: #397a4a;\"><span class=\"h2\">Cryptocurrencies are also gaining traction. With cryptocurrency, consumers pay for goods and services with blockchain-based digital currencies. Transactions are fast because payments are transferred directly between two parties; there\u2019s no third-party validation.<\/span><\/span>Processing fees are often lower than those for credit or debit cards, and cryptocurrency can be converted to any fiat currency."}]},{"@type":"Question","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/04\/14\/online-payment-trends-to-follow\/#subjectOf_FAQPage_mainEntity3","name":"The Gen Z effect: Buy now, pay later&nbsp;&nbsp;","acceptedAnswer":[{"@type":"Answer","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/04\/14\/online-payment-trends-to-follow\/#subjectOf_FAQPage_mainEntity3_acceptedAnswer_Answer","text":"The buy now, pay later (BNPL) online payment trend is getting a big push from younger generations. According to <a href=\"https:\/\/www.insiderintelligence.com\/insights\/buy-now-pay-later-ecommerce-financing-consumer-credit\/\" target=\"_blank\" rel=\"noopener\">Insider Intelligence<\/a>, the BNPL industry will reach $680 billion in transaction volume worldwide in 2025.<span style=\"color: #397a4a;\"><span class=\"h2\">It\u2019s easy to see the appeal: BNPL allows consumers to complete a purchase at the time of sale and make payments over a few weeks or months, often interest free.<\/span><\/span>Also called point of sale installment loans, BNPL loans don\u2019t impact the consumer\u2019s credit score unless they fail to pay the money back or do so late.And it\u2019s often easier to get approved for a BNPL loan than it is a traditional line of credit. BNPL is so popular, traditional credit card companies are joining the likes of Klarna, Affirm, and PayPal to offer point-of-sale installment loans."}]},{"@type":"Question","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/04\/14\/online-payment-trends-to-follow\/#subjectOf_FAQPage_mainEntity4","name":"The rise of omnichannel payments&nbsp;","acceptedAnswer":[{"@type":"Answer","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/04\/14\/online-payment-trends-to-follow\/#subjectOf_FAQPage_mainEntity4_acceptedAnswer_Answer","text":"<span style=\"color: #397a4a;\"><span class=\"h3\">It\u2019s not just the <em>variety <\/em>of payment options that are driving e-commerce payment trends \u2013 it\u2019s also the prevalence of these options. Consumers expect the same services regardless of channel, whether online or offline.<\/span><\/span>The omnichannel retail experience will be a significant driver of the growth of e-commerce payment transactions, according to Jupiter Research. That means, for example, that options like Amazon Pay or cryptocurrency won\u2019t be limited to online shopping. Consumers will have access to the same purchasing options in a physical retail location as they would online or on a mobile app."}]},{"@type":"Question","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/04\/14\/online-payment-trends-to-follow\/#subjectOf_FAQPage_mainEntity5","name":"Changing marketing, evolving needs","acceptedAnswer":[{"@type":"Answer","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/04\/14\/online-payment-trends-to-follow\/#subjectOf_FAQPage_mainEntity5_acceptedAnswer_Answer","text":"As global e-commerce payment transactions continue to grow, new trends are certain to emerge. This is a dynamic market that will continue to evolve to keep up with changing consumer preferences.Going forward, it\u2019s important for retailers to understand that payment preferences can vary from region to region and between generations. While consumers want seamless transactions and payment flexibility, it will be up to the retailer to understand their market to make the right options available."}]}]}],"image":[{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2022\/04\/14\/online-payment-trends-to-follow\/#Article_image_ImageObject","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2022\/04\/Payments_Feature-1200x630.jpg","width":"1200","height":"630"}],"mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/?p=82556","articleBody":"\n        The explosive growth of e-commerce during the pandemic drove a surge in digital payments. Today, retailers must keep track of online payment trends and accommodate consumer expectations for a wide range of options at checkout.\nWhile consumers turned to e-commerce largely out of necessity over the past two years, research shows they aren\u2019t turning back. A study from Jupiter Research found that the value of global e-commerce payment transactions will exceed $7.5 trillion by 2026, from $4.9 trillion in 2021 \u2014 a growth rate of 55% over five years.\nFueling this growth is a wave of innovation in digital payments to meet evolving consumer preferences.\n\n  \n    Generational payment methods: How Gen Z, millennials, and boomers compare\n    \n      \n      How do Gen Zers, millennials, and boomers compare when it comes to generational payment methods? New data reveals intriguing insights that can help you provide smarter payment experiences.\n    \n  \n\nOnline payment trends: Keeping up with consumer demand\nDigital payments were already growing at a rapid clip before COVID hit, but skyrocketed during the pandemic. In 2021, 82% of Americans used digital payments, up from 72% five years ago, according to a McKinsey &amp; Co. report.\nOnline payments options have grown far beyond credit and debit cards. Consumers today flexible payment options and seamless transactions, and fintech companies are answering that call.\n\nPayment services and apps (e.g., Paypal)\nDigital wallets\nCryptocurrency\nBuy now, pay later\nOmnichannel payments\n\n\n  \n    Retail trends 2022: A CX and revenue playbook\n    \n      \n      Learn about retail trends to watch this year, including omnichannel, digital-first CX, direct-to-consumer, and hyper-personalized marketing.\n    \n  \n\nPaypal led the way in online payments\nPayPal is a prime example of fintech innovation. The service integrates with e-commerce sites to allow consumers to pay directly from a cash balance maintained in their account, draw funds from another source like a credit card or bank account, or even finance their purchase \u2013 all with a couple clicks.\nConsumers don\u2019t even have to enter their shipping address because it\u2019s already saved in PayPal.\nNumerous other fintech services have made it to market since PayPal\u2019s debut in 1998. Amazon followed suit with Amazon Pay, a digital payment processing service that allows consumers to pay online using their Amazon payment methods on third-party websites. Amazon Pay uses the details stored on the shopper\u2019s Amazon account to complete the transaction and provide a seamless checkout experience.\nVenmo and Zelle are among the many other payment services available today.\n\n  \n    How retailers are reducing payment friction\n    \n      \n      Retail consumers consider long checkout lines to be a top frustration with the in-store shopping experience. Reducing payment friction can help.\n    \n  \n\nDigital wallets &amp; cryptocurrency\nDigital wallets and one-click checkout buttons are rising in popularity due to their ease of use and prevalence. All smartphones are now equipped with a digital wallet, which enables users to store details for multiple payment types, including credit and debit cards.\nUsers don\u2019t have to carry those individual items or share sensitive financial data. Instead, digital wallets like Apple Pay uses tokenization to securely transmit the information.\nCryptocurrencies are also gaining traction. With cryptocurrency, consumers pay for goods and services with blockchain-based digital currencies. Transactions are fast because payments are transferred directly between two parties; there\u2019s no third-party validation.\nProcessing fees are often lower than those for credit or debit cards, and cryptocurrency can be converted to any fiat currency.\n\n  \n    Generational payment methods: How Gen Z, millennials, and boomers compare\n    \n      \n      How do Gen Zers, millennials, and boomers compare when it comes to generational payment methods? New data reveals intriguing insights that can help you provide smarter payment experiences.\n    \n  \n\nThe Gen Z effect: Buy now, pay later&nbsp;&nbsp;\nThe buy now, pay later (BNPL) online payment trend is getting a big push from younger generations. According to Insider Intelligence, the BNPL industry will reach $680 billion in transaction volume worldwide in 2025.\nIt\u2019s easy to see the appeal: BNPL allows consumers to complete a purchase at the time of sale and make payments over a few weeks or months, often interest free.\nAlso called point of sale installment loans, BNPL loans don\u2019t impact the consumer\u2019s credit score unless they fail to pay the money back or do so late.\nAnd it\u2019s often easier to get approved for a BNPL loan than it is a traditional line of credit. BNPL is so popular, traditional credit card companies are joining the likes of Klarna, Affirm, and PayPal to offer point-of-sale installment loans.\n\n  \n    Make it seamless: Personalize checkout and drive more conversions\n    \n      \n      Too often, merchants overlook the checkout process in their personalization efforts, putting themselves at risk of abandoned carts and lost revenue. Here are some ways to personalize checkout.\n    \n  \n\nThe rise of omnichannel payments&nbsp;\nIt\u2019s not just the variety of payment options that are driving e-commerce payment trends \u2013 it\u2019s also the prevalence of these options. Consumers expect the same services regardless of channel, whether online or offline.\nThe omnichannel retail experience will be a significant driver of the growth of e-commerce payment transactions, according to Jupiter Research. That means, for example, that options like Amazon Pay or cryptocurrency won\u2019t be limited to online shopping. Consumers will have access to the same purchasing options in a physical retail location as they would online or on a mobile app.\n\n  \n    Mobile masterpiece: Creating omnichannel retail and stand-out CX\n    \n      \n      Mobile retail is a huge revenue and growth opportunity for brands that do it right. Here's how one retailer boosted profits with mobile-first CX.\n    \n  \n\nChanging marketing, evolving needs\nAs global e-commerce payment transactions continue to grow, new trends are certain to emerge. This is a dynamic market that will continue to evolve to keep up with changing consumer preferences.\nGoing forward, it\u2019s important for retailers to understand that payment preferences can vary from region to region and between generations. While consumers want seamless transactions and payment flexibility, it will be up to the retailer to understand their market to make the right options available.\n  Click, click, BOOM.\nBoost bottom lines via e-commerce.\nStart HERE.&nbsp;\n\n\n\n\t\n      ","name":"Online payment trends: Show me the (digital) money","dateModified":"2022-04-14T04:07:02+00:00","datePublished":"2022-04-14T05:15:00+00:00","headline":"Online payment trends: Show me the (digital) money","description":"Learn about growing online payment trends, including digital wallets, cryptocurrency, and buy now pay later."}],{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2022","item":"https:\/\/www.the-future-of-commerce.com\/2022\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"04","item":"https:\/\/www.the-future-of-commerce.com\/2022\/\/04\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"14","item":"https:\/\/www.the-future-of-commerce.com\/2022\/\/04\/\/14\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"Online payment trends: Show me the (digital) money","item":"https:\/\/www.the-future-of-commerce.com\/2022\/04\/14\/online-payment-trends-to-follow\/#breadcrumbitem"}]}]