A recent study unveils a significant shift in consumer payment preferences, moving away from traditional card networks to more localised and digital payment methods. The report, which surveyed over 10,500 consumers and analysed data from 37 major global markets, highlights emerging trends in eCommerce payments.
Shift Towards Local Payment Methods
The findings show that consumers are rapidly transitioning from card payments and cash on delivery (especially in emerging economies) to local payment solutions like digital wallets and Account to Account (A2A) payments. A2A payment methods, such as Brazil’s PIX, India’s UPI, and the Netherlands’ iDEAL, have become the fastest-growing payment methods within the eCommerce landscape.
Key Global Findings
Some of the key findings from the research include:
- Decline of Card Payments: By 2028, card payments will make up just 19% of transaction values (down from 31% in 2023) and only 30% of eCommerce transactions by volume (down from 41%).
- Rise of Local Payment Methods: Local payment methods are expected to account for 58% of eCommerce transaction values by 2028, overtaking card payments for the first time.
- Increase in A2A Payments: Instant A2A payments are set to double, becoming the fastest-growing local payment method, representing 18% of eCommerce transactions by 2028 (up from 8% in 2023).
The Role of Consumer Preference in Payment Choice
The growing preference for digital wallets and instant A2A payments reflects the desire for seamless, convenient payment methods, particularly among younger, mobile-first generations. The trend is expected to drive broader adoption across all age groups, leading to further diversification in global payment options.
Expert Insights
Commenting on the report, Nick Maynard, Vice President of FinTech Market Research at Juniper Research, noted, “Our analysis reveals that the global card schemes credit, debit, and card-linked wallets are steadily losing market share to local payment methods. This shift is evident not only on a global scale but also within every major region.”
CEO Insights on Global Growth
Stuart Neal, CEO of Boku, echoed these findings, stating, “Our research indicates a significant change in how people transact online, with consumers increasingly opting for digital wallets, direct carrier billing, and A2A transfers. This shift offers a clear opportunity for merchants to adapt to new consumer preferences and unlock future growth by offering more diverse payment options.”
Regional Insights
- Africa & the Middle East: Local payment systems like M-PESA and MoMo have driven strong adoption in these regions, highlighting the need for merchants to implement highly localised payment strategies.
- Asia Pacific: While card payments remain significant, local payment methods are gaining ground, with a third of eCommerce payments by volume expected to come from cards by 2028.
- Europe: Card payments will see a notable decline, dropping from 53% in 2023 to 30% in 2028, while A2A payments grow from 16% to 25%.
- Far East & China: Mobile wallets dominate, with super apps like WeChat and Alipay remaining central to eCommerce transactions.
- Latin America: This region is undergoing rapid change, with systems like PIX in Brazil leading the charge, alongside CoDi in Mexico and PSE in Colombia.
- North America: Consumers demand seamless checkouts and flexible payment options, leading to the rise of Buy Now Pay Later (BNPL), A2A payments, and non-card-linked wallets.
- Indian Subcontinent: A2A payments are rapidly growing, with local payment methods expected to represent 72% of eCommerce transaction value by 2028, led by the success of India’s UPI system.
As these trends continue, businesses and financial institutions will need to adapt quickly to cater to the evolving payment landscape.
