Come on, we’re payment nerds - not accountants!
It means we love looking at data and we love looking at how things are trending in online payments, so we can keep up and make sure our platform is set up to help our merchants stay ahead of the game.
J.P. Morgan produces a comprehensive report that looks at these E-commerce trends and much more. This report put out in 2020 looks at what was happening in 2019 and what will be happening by 2023. And from our perspective they are bang on.
What are our thoughts on all this?
Cards are the favourite and will remain that way in 2023. Credit cards (Visa, Mastercard & American Express) are the most used, as they are the biggest player in the market. BUT, there is a shift coming with Eftpos (electronic funds transfer at point of sale) developing for use in ecommerce, not just in stores. This will be welcome news for merchants (and consumers), as it will provide a bit of competition and will lower fees for debit processing.
Bank Transfers is a funny one to see when talking about online transactions, but it is growing by 5% by 2023. The main driver behind this is the explosion of buy now, pay later options (think Zip and AfterPay) that take directly from a shoppers bank account. There are over 30 buy now, later options in Australia and they keep on coming.
Digital wallets, led by PayPal are another big chuck of this payments pie and are growing, slightly. PayPal accounts for 17% of the alternate payment method used for online shopping in Australia. This is another space growing more and more - think Samsung Pay, Apple Pay, Google Pay and Visa Checkout. These are all options your customers are looking for when they hit that checkout page.
Online shoppers want to be able to get what they want, when they want it and pay the way they choose. So it’s more important than ever to make sure your payment stack is ready, willing and able to accept your payments, your way!
DISCLAIMER: We apologise to any accountants we may have offended, we do love you too!