Digital wallets remain the leading payment method globally in e-commerce with a 49% share, but account-to-account (A2A) payments are taking off, driven by real-time payment rails, according to the 2023 edition of The Global Payments Report by Worldpay from FIS. Global A2A transaction value surpassed $525bn in 2022.
In 2022, there were 64 live real-time payment schemes globally, four more than were reported in 2021.
A2A payments are available in a variety of public, private and hybrid models. In Brazil, PIX was developed by the central bank. In Canada, Interac Online is an e-commerce payment service from Interac, a privately-run collaboration between major Canadian banks. In India, Unified Payments Interface (UPI) was launched in 2016 by the National Payments Council of India and the Reserve Bank of India. UPI’s dramatic success relies on its seamless interoperability with commercial wallets such as Google Pay, Paytm and PhonePe.
Merchants appreciate A2A payment methods because they reduce the cost of payment acceptance compared with cards, while offering instant settlement of funds. A2A transactions are not intermediated by major card networks and therefore not subject to interchange fees.
Consumers are still using credit cards, although their use was expected to decline as alternatives gain ground. Global credit card transaction value continued to rise both in store and online. In addition to direct credit card use, consumer preferences for credit at checkout are broadening to include card-funded digital wallets, buy now, pay later and other point-of-sale financing options.
Finally, despite broad consumer awareness of cryptocurrencies as an investment vehicle, crypto remains a minor payment method.
Global e-commerce continues to grow in all regions, with robust double-digit growth projected in emerging markets.
