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CMSPI – IAC State of the Industry Report
CMSPI – IAC State of the Industry Report
Section 4 Overview Payment Methods Around the Globe So far, we have explored arguably the two largest Consumer-to-Business payment methods in the world: cards and cash. In many countries, though, those are unlikely to be your first port of call when making a transaction. In fact, at a regional or country level, the tender types we refer to as Alternative Payment Methods (APMs) or Local Payment Methods (LPMs) are often the default way of transacting, and many merchants invest significant amounts in ensuring that their customers can pay with their method of choice. Those preferences are not static, either. While one country slowly loosens its dependence on card-based payments, another has sidestepped plastic altogether and is further down the road of transacting Account-to-Account. Even where cards dominate, the characteristics of those cards can differ significantly between countries. In this section, we analyze the payments mixes of 21 different countries and the forces that could change them in future. The Questions • How do payment method preferences differ across the Americas, Europe, the Middle East, and Asia? • Which card and payment types am I most likely to see in different regions? • How have different countries approached cash usage? • How are Account-to-Account payments being developed around the world? The Findings • While cards remain prominent in the Americas and Europe, Europeans exhibit a disproportionate preference for debit • There is a large variance in preferences over cash, with strong declines shown in Brazil and Chile but sustained usage in markets like Japan • Asia-Pacific leads the world in instant payments adoption despite Central Bank-backed efforts in Europe and elsewhere
The Numbers • 90% The share of cards estimated to be debit cards in the European region in 2022 121 • 81% The share of ecommerce spend made via digital wallets in China • 2021 The year Pix, Brazil’s instant payment solution, became the most popular payment method in the market • 54% The share of global commerce made via mobile devices in 2022 122 • 3x How much more likely a customer is to use a debit card to make an online purchase in Chile than in Canada 123 • 40% The average share of in-store transactions made via debit card in EMEA in 2022 124 • 6x How much more likely a customer is to use cash for a POS payment in Japan than in China in 2022 125
121 https://www.paymentscardsandmobile.com/debit-cards-dominate-across-europe-as-cash-recedes-and-dig- ital-grows/ 122 Worldpay Global Payments Report 2023
123 CMSPI analysis of the Worldpay Global Payments Report 2023 124 CMSPI analysis of the Worldpay Global Payments Report 2023 125 CMSPI analysis of the Worldpay Global Payments Report 2023
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