Assessing Your Banking Infrastructure: The Importance Payment Orchestration
Unpredictable. Unexpected. The past few days have been no good, very bad days for a lot of people and, quite frankly, it sucks. Being prepared for...
2 min read
Jeff Katz : May 30, 2023 9:29:00 AM
2023 is moving, quickly. We're beginning conversations with our customers and partners about 2024 plans and strategies, the payments landscape in the US continues to evolve at a rapid pace.
Consumer demands for more flexibility, convenience, and security have led to an increasing need for investment in alternative payment and payout methods.
The role of digital wallets and alternative payment methods is reshaping payments and payouts, highlighting the importance of businesses adapting to these trends to maximize customer satisfaction, develop loyalty, and address the growing cross-border hiring and commerce.
Digital wallets have taken the world by storm, with the number of users in the United States surpassing 140 million in 2023 (Statista, 2023). This massive adoption can be attributed to the convenience, speed, and security they provide to consumers. Digital wallets like Apple Pay, Google Pay, and Samsung Pay allow users to store multiple payment options, including credit and debit cards, as well as enabling contactless payments. These features make digital wallets a preferred choice for many consumers, leading to their widespread popularity.
It's about more than digital wallets, though. Alternative payment methods are becoming increasingly popular, such as cryptocurrency payments, buy-now-pay-later services, and peer-to-peer payment platforms. These payment methods have gained traction due to their ability to offer unique benefits to consumers, such as faster transactions, increased privacy, and flexible payment terms.
As consumer preferences continue to shift towards these alternative payment methods, it is crucial for businesses to view payments and payouts as an opportunity to:
Recent Statistics Highlighting the Need for Investment
The recent surge in e-commerce has made it essential for businesses to adapt their payment systems to meet consumer expectations. According to a 2023 report by Adobe, US e-commerce sales are expected to reach $1 trillion, representing a 23% growth from the previous year (Adobe, 2023). As more consumers turn to online shopping, the demand for diverse payment options will continue to grow, especially as global consumers make more global purchases (which alternative payment methods make increasingly easy).
Moreover, the gig economy in the US has experienced significant growth, with an estimated 70 million Americans participating in it as of 2023 (Forbes, 2023). This trend highlights the need for businesses to adopt payment and payout methods that cater to a wide range of freelancers and gig workers. Yes, it’s bi-directional: Payments and payouts are equally impacted by the shift to alternative payment methods.
As consumer preferences shift towards digital wallets and alternative payment methods, businesses must invest in payment and payout choices to stay competitive. By adapting to these trends, businesses can maximize customer choice, increase satisfaction, develop loyalty, and better address the challenges presented by cross-border hiring and commerce. Failure to adapt could result in missed opportunities and a diminished market presence in an increasingly digital world.
Unpredictable. Unexpected. The past few days have been no good, very bad days for a lot of people and, quite frankly, it sucks. Being prepared for...
Kenya has the blueprint to make significant strides in the global eCommerce market. The country’s adoption of a national digital economy strategy has...
Despite its physical size, Indonesia has cemented itself as one of the top 10 largest eCommerce markets in the world. The country is experiencing...