02 2019 | INSIDE
6 expert forecasts for payments of tomorrow
This is how we pay in 2019 - The next 12 months promise rapid change in terms of payments, particularly in the digital marketplace. The global Paysafe Group – with its subsidiaries, paysafecard and Paysafe Pay LaterTM, based in Vienna – sees 6 decisive trends for the coming year:
Nothing beats cash - also and particularly on the internet
New payment forms will lead to the increasing significance of cash-based payment options in e-commerce. Because Europeans are convinced about the security of cash (59% stated this in a survey by ING), enormous potential exists here for intelligent and convenient offers, such as Paysafecash. People with no access or insufficient access to basic financial services are also a group that must not be underestimated even in highly developed countries. In the EU alone, there are 30 million adults without a bank account. And a recent IMAS study shows that 10% of all consumers and even 15% of those with higher education would be prepared to spend more online if they could pay with cash.
Increased customer demand for payment delay
More and more consumers want to disconnect the payment from the purchase in terms of timing, but often without using a credit card for this: some due to security concerns, others, because they do not have a credit card. Consumers in Germany and Austria paid by invoice more than debit card when shopping online in the last month. 55% in Austria did so because they feel it is safer, compared to 49% in Germany. While numbers for payment by invoice are still low elsewhere, they are nonetheless on the radar – 5% in the UK and 4% in the US – a sign that merchants in these countries are beginning to offer this additional layer of reassurance. (Study - Lost in transaction, 2018)
This trend will increase in 2019, according to the assessment by Paysafe. That is why services such as installment purchases and buying on account, which are reinforced by Paysafe Pay LaterTM, are booming more than ever. "Buy now, pay later" helps customers to distribute and manage their expenditures over a longer time period, without losing an overview in the process.
Security is becoming a top factor for online merchants.
Every Webshop relies on payment service providers, so security is unsurprisingly always an important selection criterion. However, in 2019, this factor will finally take the upper hand above all other criteria. In the Lost in Transaction Paysafe study, 59% out of 600 Webshop operators in 5 countries* stated that security still ranks ahead of reliability and cost issues for them. The Paysafecash payment option offers merchants a 100% payment guarantee, as the delivery is only triggered with the cash payment in the point of sale.
*Webshops in Austria, Germany, UK, Canada, USA
Stablecoins as a new opportunity for cryptocurrencies
After the major concerns about Bitcoin, new forms of cryptocurrencies will establish themselves. Specialist "stablecoins" will gain trust, as they are backed by gold, traditional currencies or a combination of various "hard assets" and therefore link tradition and the future.
New mobile accessible marketplaces
The customary in-app marketplaces will be developed further and Paysafe anticipates a widespread increase in digital shopping environments in 2019, going beyond single-service apps. Localised and editorially supervised marketplaces, such as a university campus, an airport or the environment of a hotel, will bundle local traders and offer a completely new, convenient shopping experience.
Contactless function is booming
Perhaps unsurprisingly, the forces driving cash usage models vary considerably across territories, depending greatly on cultural and infrastructural trends. Contactless payment, in particular, is probably the force exerting greatest pressure on cash usage in the UK, where 54% of respondents had used contactless in the previous month. That’s in stark contrast to the US, where just 3% of consumers had done so; this is especially surprising given the fact that 40% of Americans reported having tried contactless in 2017. The same trend is visible in Canada, where 58% of consumers had tried contactless in 2017 but only 19% reported using it in the last month. Indeed, only Austria demonstrates anything close to the UK’s contactless commitment, with 32% of consumers using it compared to just 9% in neighbouring Germany. (Study - Lost in transaction, 2018)
Udo Müller, CEO of paysafecard comments on this panorama for 2019: "As a 'truly global player', paysafecard sees the new year as a turning point in e-commerce. The wish of millions of consumers to bring the advantages of cash onto the internet will lead to a broad basis of entirely new methods for the authorisation and processing of online purchases. Many millions of people, who do not want to, or cannot, use other forms of payment on the internet, will be brought into the 'digital boat'. This inclusion is becoming a key concern of our society."
And Claire Gates, CEO of Paysafe Pay LaterTM, adds: "Online traders are constantly being requested to develop the customers journey in accordance with customer expectations. As the interaction between technology and consumers is changing at an unprecedented speed, the expectations for technical solutions are also increasing. The traders need to ensure that these demands are met. The innovative solutions of Paysafe Pay LaterTM are driving this change forward in the interest of the merchants and consumers."