What are the 2024 trends for The Retail Digital Payment Landscape?
The rules of the game have changed within retail. As the lines merge between brick-and-mortar retail and e-commerce, with traditional high street retailers developing an online presence and digital native businesses expanding into physical stores, there is no longer ‘online’ or ‘offline’ – there’s simply retail. Proxima’s recent Retail Evolved report delves into many challenges and opportunities that have arisen and will continue to do so.
One area mirroring the evolution is Payments. Pre-pandemic, we were already gravitating towards a more digital payment landscape, questioning whether we were seeing the end of physical currency. We all know how that played out once cash was dubbed a virus vector – changing the preferred way to pay for nearly 70% of consumers.
Fast forward to today, cash remains in a steady decline, the use of debit cards and credit cards continues to increase, and more than half of consumers now rely on digital wallets such as mobile wallets like Apple or Google Pay. Reports claim that by 2030, global cashless payment volumes are expected to almost triple from 2020 levels, to more than 3 trillion.
In fact, the digital payments landscape is nearing – if not already in – a new era. An era established by a heady combination of technological advancements and shifting consumer preferences, making for an increasingly competitive and digital marketplace. From guarding against sophisticated AI-enabled fraud to ensuring seamless cross-border transactions, retailers will need to adapt to keep up with the evolving parameters of payments if they are to retain their customers.
