Along with the development of technology, the way how people pay for goods and services they purchase have also changed. Therefore, it is important to take a look at the payments future 2017 and get a better understanding about the trends.
Non-cash payments on the rise
Non-cash payments are on the rise! We know that, we’ve seen that and most of importantly stats back up this fact. As per estimations, non-cash payments will reach £1.44 trillion and $46 trillion within UK and US respectively by 2026. Current value of non-cash payments measure £1.14 trillion and $33 trillion within UK and US respectively. Therefore, a significant growth within non-cash payments is expected within the next decade.
The convenience associated with non-cash payments has contributed a lot towards its popularity. As a result of the increasing popularity of online shopping and card payments, you have got the opportunity to order anything you want at the comfort of your own home. Credit card processing is quick and rather safe. Moreover, fraud and risk management measures taken by merchants and retailers have helped online shoppers by preventing payment fraud. This has created trust within the minds of online shoppers and they tend to purchase whatever they want online without thinking twice.
A few more interesting facts about non-cash payments expected by 2026; a recent study conducted by YouGov and the Centre for Economics & Business Research shows more than 76% of all transactions done within US will be non-cash based. 63% of all transactions done within UK will also be non-cash based transactions. Along with such trends, businesses have to adapt accordingly in order to remain competitive. By 2026, more than 82% of businesses within the US will accept non-cash payments. Furthermore, more than 70% of businesses in UK will follow. More details on this study can be found in the “Future of Payments” report of Paul Hastings.
Reduction of payment fraud risk
The reduction of payment fraud risk would create a tremendous impact on the increasing popularity of non-cash payment methods. This is the primary expectation of consumers within the US and the UK. With 48% of consumers from the US and 53% consumers from the UK agreeing to this. Other factors that may contribute towards the popularity of non-cash payments are competitive rates and enhanced accessibility.
One can safely assume that due to technological progress, more and more diverse methods of non-cash payments will be made available to several markets. It is surely interesting to see to what extent non-cash payments will be applied in our lives within the next decade. Cryptocurrnecies, mobile payments, NFC, ewallets – lets wait and see!