About the State of Industry Report Developed alongside the world’s leading payments experts, CMSPI’s flagship report aims to empower merchants and advocates with the information they need to execute payments for their organizations in the market today. CMSPI’s Insights team has created the State of the Industry Report to be the first of its kind, developed with merchant input, to fuel merchant decision-making.
CMSPI State of the Industry Report 2025
The Playbook for Smarter Payments
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The State of the Industry Report 2025 will include: Section 1: Characteristics of a Successful Payment Method An insightful thought exercise of what characteristics are needed for a payment method to be successful. Section 2: Payment Method Profiles Profiles of current payment methods including merchant costs considerations, supply chain structures, regulations and an overview of other characteristics. Section 3: Payment Method Scorecard Each payment method is evaluated by various metrics in comparison to our successful payment method from Section 1 to see how they measure up.
It’s been a year since the launch of our inaugural State of the Industry Report, and we are excited to share a sneak peek into what is to come in this year’s release of the Report!
*Sources are provided on page 9 where necessary
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SECTION 1
SECURITY
Discover the characteristics of a successful payment method and how the options we have today measure up in this year’s edition of the State of the Industry Report.
USER EXPERIENCE
GOVERNANCE
CHARACTERISTICS OF A SUCCESSFUL PAYMENT METHOD
ACCEPTANCE
COST
MACRO CHARACTERISTICS
MICRO CHARACTERISTICS
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Ecommerce Revenue Lost to Payments Fraud
$90.00
Merchants reported losing over 3% of ecommerce revenue to fraud. In 2024, merchants globally lost $217 billion of ecommerce revenue to fraud.
$80.00
$70.00
$60.00
$50.00
$40.00
$30.00
$20.00
$10.00
$-
LATAM
Europe
NAM
APAC
Section 1: Security Special Feature on Fraud and Approvals
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2024 Global Payments Mix
Point of Sale
Ecommerce
How are Digital Wallets Funded?
Digital Wallet
Digital Wallet
Credit Card
Credit Card
27% 23%
Debit Card
Debit Card
Bank Transfer
Cash
22%
Buy Now Pay Later Cash on Delivery
Bank Transfer
0% 20% 40% 60% 80% 100% Debit Card Credit Card Prepaid Card Bank Account Other
53%
Buy Now Pay Later
25%
Globally, combined spend on cards and card-backed digital wallets is approximately two- thirds of 2024 consumer spending at $29 trillion.
Card payments, including credit and debit, are still the top payment method for POS transactions.
Digital wallets continue to lead the way globally in ecommerce payments.
Section 1: User Experience
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SECTION 2 Payment Method Profiles
U.S. Card Fee Costs 2022-2024
$250.00
$200.00
CMSPI estimates U.S. merchants paid $236 billion to accept card payments in 2024.
$150.00
$100.00
$50.00
$0.00
2022
2023
2024
Interchange Network Processor
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SECTION 2 Payment Method Profiles
U.S. Affirm
Sweden Klarna
Australia Afterpay
Germany PayPal
Japan Paidy
Year Founded Payment Options
2012
2010
2015
2022
2008
Global Overview: Buy Now Pay Later
Pay in 3 or 4 Pay in 30 Days
Payment after 30 days Installment Payment
Pay in 4 Monthly Installments
4 installments over 6 weeks
Pay in 3, 6 or 12 installments
Financing Pay in Full
Pay Over Time (£0.11 + 0.99- 4.99% + $0.20-0.5) Pay Later (2.6-4.29% + $0.26-1.13) Pay Now (1.35% + $0.20-0.25) Pay in 3 or 4 - no interest Pay in 30 Days - no interest Financing - 0-33.99% Pay in Full - N/A Australia, Austria, Belgium, Canada, China, Czech Repulic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, Hungary, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Spain, Slovenia, Sweden, Switzerland, the U.K., the U.S.
Default Merchant Fees *These fees are not representative of all pricing for merchants.
$0.15 + contract with PayPal & management service fee Payment after 30 days - interest fee Installment Payment (fixed borrowing rate & effective annual interest rate)
$0.13 + contract with Affirm
4.19-4.99% + $0.19-0.39
N/A
Pay in 4 - interest free Monthly Installments (0-36% APR)
Fixed fee due at each payment dependent on total spent
Consumer Fees
Interest-free late fees apply
U.S., Australia, New Zealand, Canada, the U.K.
Australia, France, Germany, Italy, Spain, U.K., U.S.
Countries Available
U.S., Canada, the U.K.
Japan
Settlement Time
3 Days
4 Days
3-5 Days
3 Days
N/A
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SECTION 3
Digital Wallet (Staged)
Real-Time Payments
Cash
Credit Card Debit Card Digital Wallet (Pass-Through)
Stablecoin Bank Transfer
BNPL
Total Overall Score
Payment Method Scorecard Using various metrics provided in the Report, each payment method is given a score 1-5 to evaluate how they measure up to the characteristics of a successful payment method.
SECURE
Total Score
USER EXPERIENCE
Total Score
COST
Total Score
ACCEPTANCE
3.4
5.0
5.0
4.0
3.0
2.5
2.5
3.5
1.0
Total Score
GOVERNANCE
Total Score
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Sources
[xvi] Payment Solutions | Klarna [xvii] Why use Afterpay? | Afterpay [xviii] Buy Now Pay Later | PayPal [xix] Frequently asked questions | Paidy [xx] Frequently Asked Questions | Affirm [xxi] Klarna international | Klarna [xxii] Our Mission | Afterpay [xxiii] Payment Methods | PayPal [xxiv] Affirm | Adyen [xxv] Klarna | Adyen [xxvi] Afterpay & Clearpay | Adyen [xxvii] PayPal | Adyen
Page 4 Worldpay Global Payments Report 2025 & MRC Global eCommerce Payments and Fraud Report 2025 Page 5 Worldpay Global Payments Report 2025 Page 6 CMSPI analysis using publicly available sources Page 7 [i] Affirm is 10 years old! | Affirm [ii] About Us | Klarna [iii] The Afterpay Story | Afterpay [iv] PayPal Launches Its ‘Pay in 30 Days’ in Germany | PYMNTS [v] PayPal snaps up Japanese buy-now-pay-later unicorn for $2.7 billion | CNN
[vi] How to use Affirm | Affirm [vii] Payment Solutions | Klarna [viii] Why use Afterpay? | Afterpay [ix] Buy Now Pay Later | PayPal [x] How to use | Paidy [xi] Affirm | Adyen [xii] Klarna | Adyen [xiii] Afterpay & Clearpay | Adyen [xiv] PayPal | Adyen [xv] How to use Affirm | Affirm
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