Study finds PayPal is the digital wallet leader in the EU-5

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Few trends have a truly global reach – seismic shifts in behavior that transcend borders and languages.

The digital transformation of payments can indeed be described as “global”.

Born out of necessity during the pandemic, but firmly rooted in convenience and choice, mobile payments and flexible payment options are gaining momentum and perhaps reaching a tipping point in several developed economies, as card payments open the door to a wider use of alternative payments.

In the Benchmarking the World’s Digital Transformation study, 15,100 people in 11 countries told PYMNTS and Stripe that they are increasingly comfortable adopting digital experiences across the 10 pillars that make up the economy connected. These pillars relate to everything from technological means of having fun to how we get our food (delivered to the door, for many of us).

Read also: New study of 11 countries shows digital transformation has only reached 27% of its full potential

At the center of it all are new ways to pay for the goods and services that are increasingly in demand as various economies reopen around the world. The survey of 11 countries – responsible for half of the world’s GDP – indicates that the digital payments pivot has been a complete sweep. But tipping points are looming, and they seem pretty close, where digital transactions can account for a significant majority of payment volume and value.

When it comes to the “older” ways of doing things, cash is still at least present for in-store transactions. This entrenchment is particularly evident in Germany, where banknotes and coins – and checks! — represent nearly 38% of payments, followed by just over 31% in Italy. The percentage of in-store cash transactions drops to 20% in the United States. Overall, card transactions remained the most used by consumers in the 11 countries, with 55% in-store transactions and 49% digital transactions.

Table 5

digital payments do not using cards, more than 60% of these transactions were made through digital wallets – indicating how quickly we see consumers using their mobile devices at the register or in the aisle to buy what they need. Adoption of mobile payments, at least in-store, has a low adoption percentage among teenagers, depending on where you look, reaching 22% in Singapore.

Interestingly, it is in Germany – the very country that is decidedly the most cash-based (see above) – where we see a strong preference for digital wallets, linked to 44% of all transactions in online (see graph below), and where 83% of those transactions use PayPal.

Admittedly, it is only one country, but it offers a microcosm of emerging trends: cash has its place in the economy; but for those who are ready to make digital payments in linethe leap is made wholeheartedly and the adoption of the portfolio is significant.

Moving online

Moving from in-store payments to commerce as a whole – and to commerce online, the seismic shift becomes even more pronounced. Cards are still in effect, the most common form of payment at checkout. But they are not the majority. Mobile payments have found favor with consumers, typically accounting for a quarter to a third of transactions.

There is still fertile ground for buy now, pay later (BNPL), which has yet to hit single-digit percentage points in our study of 11 countries.

Table 4

Across different pillars – it is the connected economy, after all – digital transformation shows that transactional activities (measured by an index ‘score’) are more firmly entrenched in banking and online shopping. market. But they also have a place in leisure and health (like virtual therapy appointments).

Table 3

Overall, we found that digital transformation—which includes payments, but refers to more holistic digital engagement—has only reached 27% of its potential. The implication here, then, is that things are just getting started, and around the world, digital wallets and BNPL will be part of the tailwinds that increase digital engagement.

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NEW PYMNTS DATA: THE FUTURE OF BUSINESS SUPPLIER INNOVATION STUDY – APRIL 2022

Plastiq - The Future Of Business Payables Innovation: How New B2B Payment Options Can Transform The SMB Back Office - April 2022 - Find out how all-in-one payment solutions can help businesses streamline B2B transactions and eliminate transaction friction. AP and AR management

On: While more than half of SMBs believe an all-in-one payment platform can save them time and improve cash flow visibility, 56% believe the solution could be difficult to integrate with AP systems and existing ARs. The Future Of Business Payables innovation report, a collaboration between PYMNTS and Plastiq, surveyed 500 SMBs with revenues between $500,000 and $100 million to explore how all-in-one solutions can exceed customer expectations. SMEs and help sustain their activities.

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