Growing consumer interest in digital payment options at in-store and online retailers was rising even before the pandemic boosted acceptance. Recent research forecast that global digital payment services, particularly cashless payments, will grow by more than 80% from 2020 to 2025 and will nearly triple by 2030. All indications show that, by 2030, the number of cashless payments per capita will be roughly double to triple the current level across regions.
In the October/November edition of Cross-Border Retail Payments Tracker®, PYMNTS explores how the emergence of digital payment services is changing the payments landscape, helping eCommerce retailers to provide a more seamless and secure customer experience.
Around the Cross-Border Retail Payments Space
HSBC announced support of central bank digital currencies (CBDCs) but expressed concerns about the regulatory and security risks. The international financial institution (FI) asserted, in a recent company insight article, that central banks need to monitor whether CBDCs, under consideration in numerous countries, can adversely impact financial stability. To make CBDCs work, interoperability is key, as is data privacy and safety from cyberattacks.
India and Singapore have joined several other Asian-Pacific countries working to facilitate real-time cross-border payments. The Monetary Authority of Singapore and the Reserve Bank of India agreed to link their digital payment services to enable instant fund transfers between India’s Unified Payments Interface (UPI) and Singapore’s PayNow real-time payment system. This offering is scheduled to roll out by July 2022.
Despite the pandemic-driven rise in global eCommerce, United Kingdom consumers purchased fewer cross-border goods in the past year, a decline attributed to European Union customs and border concerns. Research found that U.K. consumers are concerned about expensive delivery costs (62%), potential customs charges (49%) and poor return policies (47%), all of which increased in 2021.
For more on these stories and other cross-border retail payment developments, read the Tracker’s News and Trends section.
Etsy on Streamlining Global Payment to Drive Customer Engagement
Emerging payment options worldwide have helped streamline online payments while providing consumers with personalized and secure payment experiences. In this month’s Feature Story, Morgan Blake, vice president of payments at Etsy, explains how supporting a variety of digital payment services ensures a seamless and secure global eCommerce experience for buyers and sellers.
New digital payment services are altering consumer expectations for faster and more seamless transactions, and eCommerce retailers are pressed to support these emerging payments alternatives to remain competitive in a vast but crowded marketplace. This month’s Deep Dive explores the eCommerce market challenges and benefits of embracing digital payment services to help minimize cross-border payment frictions and drive customer engagement as a result.
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