$34 billion of payment revenues is at stake in North America, more than $25 billion is under threat in Latin America, and more than $24 billion in Asia-Pacific. In Europe, where more than 55% of consumers do not make use credit cards regularly, more than $4 billion of payment revenue is at risk.
Although traditional payment methods still dominate the consumer payments landscape, next-generation offerings are rapidly gaining traction.
More disruption is expected from biometrics payments. More than four in 10 respondents (42%) believe that biometrics are likely to be widely used by 2025, and 9% said they would be willing to use it as their in-person primary method of payment, if available, by 2025.
External macroeconomic factors including inflation and rising interest rates are shaping consumers’ payment choices as they look to reduce debt interest. Almost one third (31%) of credit card users said that they are considering switching to other payment instruments for in-person shopping, with slightly more than half (54%) of these planning to use non-interest-charging payment methods including debit cards, cash and buy now, pay later financing.
Banks that make bold moves to embrace next-generation payment methods offering people more choice and control could unlock higher levels of customer engagement and drive growth in a rising-interest-rate environment.