144 billion… That number is impressive in almost any context (like the approximately 144 different types of coffee generated by four coffeemakers in our Boston office of just 40 people), but our research turned up something interesting as it relates to payments: In 2015, the number of U.S. noncash payments is estimated to have totaled more than 144 billion, with a transaction value of almost $178 trillion. On top of that, U.S. eCommerce sales will top $370 billion in 2017!
With billions of payments and trillions in sales taking place—and that’s just in the U.S.!—it’s worth taking the time to understand more about the payments landscape. For us (and others like us in the payment processing industry), analyzing payment method statistics helps us stay ahead of the curve so we can continually give you, our merchants, the business tools you need. For you, the same statistics can give you a leg up in adapting to customer expectations.
So take a look at the stats below and draw your own conclusions. And if you come up with an insight you’d like to share (or just discuss!) tweet us @BlueSnapInc.
Payment Method Statistics
The statistics below refer to payment methods used around the world—how people prefer to pay for goods and services, how merchants are supporting them, and where industry experts think we’re headed.
Global Payment Method Statistics
1. The preferred payment method of global online shoppers are credit cards (42%), followed closely by electronic payment (including PayPal if available) at 39% and debit card (28%). (Statista)
2. Formal banking products are not used by 2.5 billion of the world’s adults; much of that unserved population lives in Africa, Asia, Latin America, and the Middle East (nearly 2.2 billion). (McKinsey Quarterly)
3. Visa issued roughly 200 million digital accounts to unserved populations globally between 2011 and 2015; it plans to provide an additional 500 million accounts by 2020. (ECommerce Payment Methods Report 2016)
4. Digital wallets are expected to overtake credit cards globally by 2019. (ECommerce Payment Methods Report 2016)
5. The value of digital payments around the world is expected to reach $3.9 trillion this year, an increase of 14% year-over-year. (Mobile World Live)
According to Worldpay’s Global Payments Report, the most common payment trends broken down by region are:
6. North America—Credit cards top the list of commonly used payment methods, at 36% in 2015, but will fall to second place in 2020 (26%), after digital wallets (27%).
7. Latin America—Credit cards topped the list in 2015 (53%) and are predicted to remain there in 2020 (45%).
8. Asia Pacific—Digital wallets topped the list in 2015 (46%) and are predicted to remain there in 2020 (38%).
9. Europe, Middle East, and Africa—Debit cards topped the list in 2015 (27%) and are predicted to remain there in 2020 (25%).
North America Payment Method Statistics
10. Fifty-nine percent of U.S. shoppers use Visa as their credit card of choice. (Worldpay Global Payments Report)
11. North Americans’ use of debit cards is falling, from 58% in 2016 to a projected 55% in 2020. (Accenture)
12. Almost 90% of U.S. shoppers say they carry cash, but 35% believe that digital wallets will be the main payment method by 2020. (PCWorld)
13. Almost half (49%) of small U.S. business owners say customer demand is the driver for adding new payment options. (PCWorld)
14. Thirty-five percent of millennials and affluent consumers regularly use their mobile phones to pay online, compared to 23% of average consumers. (Accenture)
15. Almost three-quarters (73%) of North American consumers are more likely to trust traditional card providers as their mobile payment provider, over just 59% who trust in large tech companies or 24% in tech startups. (Accenture)
16. As of June 2017, four million locations in the U.S. support Apple Pay (about 35% of retailers); it started out with just 220,000 locations back in September 2014. (Digital Trends)
Contactless Payment Statistics
17. Thirty-seven percent of small business owners plan to add new mobile payment options by 2018. (PCWorld)
18. Person-to-person (P2P) money transfers are expected to have the largest year-over-year net increase in value in 2017, with vendors processing $200 million more than they did in 2016. (Juniper Research)
19. The combined market share of Apple, Samsung, and Google (Android Pay) increased from 20% in 2015 to 41% in 2016. That number is expected to reach 56% by 2021. (Juniper Research)
20. Among small- and medium-sized businesses in the U.S., Apple Pay and Google Wallet are the top two types of mobile payment methods used, at 16.6% and 16% respectively. Android Pay follows at 11.3% and Samsung Pay at 8.2%. (Statista)
21. Forty-four percent of U.S. shoppers want to see coupons, discounts, and special offers in mobile wallets. In addition, every digital coupon installed on a mobile wallet was shared, on average, with more than 3 other mobile devices. (Access Development)
As these stats show, payment trends change quickly—in the space of just one year, three years, or five years, new methods edge out traditional ones and customer preferences change. (Are you using Apple Pay or digital wallets yet?) At BlueSnap, we do everything we can to help merchants stay on top of the latest trends, while offering regular product updates that will boost your business.
If you have any questions about our gateway processing tools and features, get in touch!