CONCLUSION 4
Conclusion The global payments landscape may be continuously evolving. Payment methods are essential and dynamic in the payments landscape, and it is important for us to dive deep into how they compare and contrast to one another and to the characteristics we would ideally see in a payment method. In this report we have proposed five characteristics that are important when considering what makes a payment method successful. The ideal payment method could be summarized as one that is highly secure, low cost, and ubiquitously accepted with great user experience and strong governance. Competition amongst payment methods is just as important as competition within a payment method, given subjective preferences of consumers and merchants. By creating payment method profiles, we analyzed in detail each of the payment methods that are globally relevant today. These payment methods are cash, cards (credit and debit), digital wallets (pass-through and staged/stored value), pay by bank (bank transfer), real-time payments, Buy Now, Pay later (BNPL), and stablecoins. Each of these payment methods have benefits to offer both merchants and consumers. Our scorecard provided a measurable way to compare and contrast these payment methods to observe their strength and weaknesses. While out of the payment methods evaluated debit cards come closest to the ideal this year, it will be interesting to see if it can retain its position in the coming years. We recognize the nuances within each payment method across regions and look forward to your feedback and to future editions of the State of the Industry Report as we continue to observe how the payments landscape evolves over time.
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