Card payments no longer the default choice for consumers: local payments are the new hero

Boku 2024 Global Ecommerce Report: The Changing World of Payments research encompassing 10,500 consumers across 37 markets, indicates a significant shift in online payment preferences, with card payments witnessing a decline in favor of local payment methods. The study in collaboration with Juniper Research, unveils a notable rise in the adoption of local payment methods such as digital wallets, Account to Account (A2A) payments and direct carrier billing for ecommerce transactions.

Key findings from the report show a projected decrease in card payments' market share to 20% by 2028, down from 30% in 2023, while local payment methods are anticipated to represent 58% of global ecommerce transactions by 2028. Notably, Account to Account (A2A) payments, including instant payments and bank transfers, are highlighted as the fastest-growing method within ecommerce.

Nick Maynard, VP of Fintech Market Research, at Juniper Research said, “Our research for this report from Boku highlights that against a backdrop of continued strong growth in ecommerce, the global card schemes (credit, debit and card-linked wallets) continue to lose share to regional and local payment methods. This is a trend seen at an aggregate global level but also repeated in every region across the world."

Stuart Neal, CEO of Boku said, “Our research shows the way the world transacts online is changing fast, and that change is being driven in the main by a consumer preference for convenient, seamless payment methods like digital wallets, direct carrier billing and Account to Account transfers. Merchants now realise that the key to their future global growth and success lies in their ability to offer consumers more payment choice. At Boku, we’re excited to provide the world’s largest merchants with access to our global network of localized payment solutions so their customers can more easily pay for the things they love, the way they want - no matter where they are in the world.”

Read more in the official press release.

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