Worldpay Report: Consumers Driving Golden Era of Payments
Releasing its 2024 Global Payments Report, Worldpay has projected consumers’ use of digital wallets to skyrocket globally in the coming years.
Its report, analysing the payments landscape in 40 countries, suggests consumers are driving a golden era of payments with many millions adopting digital wallets.
Across Europe, Worldpay has found the UK is leading the charge in payment card-backed digital wallets, which are projected to account for £203.5bn (US$256bn) of UK e-commerce transactions by 2027.
Indeed, Worldpay finds digital wallet transactions will double between now and 2027 at UK point-of-sale (POS) terminals, rising from 14% of all POS transactions today to 29%.
Digital wallets: The future of payments
With such marked growth expected in UK digital wallet adoption, Worldpay’s report indicates that digital wallets will represent £493bn (US$620bn) in total transaction value by 2027.
Using the UK as a case study for digital wallet growth, Worldpay’s report underscores seismic shifts taking place in consumer payments behaviour today.
This shift, Worldpay notes, saw its tipping point during the COVID-19 pandemic, in which contactless payment methods and digital purchases became the method of choice for many consumers worldwide.
Now, as the technology continues to mature, more and more consumers are being given confidence in new ways to pay.
And, the rapid rise of digital wallets not only represents a shift in consumer behaviour but is also providing a boost to the e-commerce market.
In the UK alone, Worldpay reports digital wallet use will, alone, result in 7% compound annual growth (CAGR) through 2027.
Pete Wickes, General Manager, EMEA at Worldpay, says: “Consumers are not just embracing digital wallets, they are driving a revolution in the payments landscape.
“The combined effect of the pandemic, alongside digital wallet technology reaching a level of maturity and implementation in recent years has driven a monumental rise in adoption both globally and locally in the UK.
“It is hard to deny the ease of use and convenience digital wallets provide whether shopping in-store or online. From this basis, merchants now have a huge opportunity to diversify their payments choice to meet customer needs."
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