In this blog post, Traderoot Africa explores the emerging trends that are set to shape the payments industry in 2023.
In the world of payments, gaining a competitive advantage can help position yourself well ahead of the curve. As we head into the new year, many companies, banks, fintechs and more will be looking at how they can optimise their payments. Let’s explore some of the top payment trends expected in 2023.
Buy Now Pay Later (BNPL)
Buy Now Pay Later (BNPL) services continue to show significant growth, specifically over the past two years. This was largely due to the uncertainty around the COVID-19 Pandemic. Even though it appears the worst is now behind us, many industry experts predict that the number of businesses who allow customers to make payments for products in instalments will continue to rise.
According to data, 65% of merchants added BNPL as a payment method in 2022. BNPL services are also predicted to comprise approximately 24% of ecommerce transactions by 2026.
QR Code Payments
QR code payments also experienced incredible growth as a result of the Pandemic. In the height of the Pandemic, QR codes provided a simple solution for businesses to switch to contactless payments. QR codes are now a standard practice for most merchants. They also have incredible use cases beyond the payments realm. It can only be expected that QR codes will continue to show their dominance when it comes to payments.
The number of people who use QR codes to make purchases is expected to surpass 2.2 billion by 2025. This figure equates to nearly 30% of all mobile phone users worldwide.
Many customers now expect to see digital wallets as a payment option during checkout. Meaning customers expect to have the option to make electronic transactions via an e wallet; which is an electronic device, online service, or software program that allows one party to make electronic transactions with another party bartering digital currency.
Retailers who do not give their consumers the choice to pay with a digital wallet are likely to lose a considerable proportion of potential sales both in-store and online. This is largely because paying by phone is convenient for most shoppers.
The number of consumers using digital wallets for POS transactions is expected to account for 30% of all POS transactions in 2023.
“With the increased acceptance of digital payments, coupled with consumer preference, we expect to see an acceleration in digital payment usage in 2023 and beyond. Don’t get left behind, Traderoot can help you integrate various payment solutions,” says Jan Ludik, Director of Traderoot.
In 2023, consumers will expect more. Your customers will expect you to provide them with a wide array of payment methods. Anything from QR codes, to digital wallets, to BNPL solutions. You’ll want to have as many payment options as you can to ensure a seamless shopping experience for all. To learn more or to discuss your payment needs, email email@example.com.