The past year marked a significant period of transformation within the payment space as it evolved and adapted to consumer habits over the pandemic.
This was especially the case as commerce became increasingly digitalised and a heightened focus on a seamless consumer experience grew.
As part of Capgemini’s 2022 Top Trends in Payments Report, the group revealed that with the digital revolution of the industry set to continue on its accelerated path, transcending to the retail sector where digital wallets are expected to overtake cash as card as the most popular in-store payment method.
Furthermore, according to the report, by 2024, cash is set to account for less than 10% of in store payments in the UK and 13% of global payments.
The report underlined the need for firms and fintechs to remain nimble and adaptive as we approach a new era of increased digitalisation, whilst the regulatory framework that many of these firms operate under also adapts to accommodate a new payment environment.
It emphasised the companies which ride the wave of non-card payments and build on this growth will forge ahead in a new digital era – lauding API-based business models and open ecosystems as an avenue to maximising potential of digital engagement.
As well as this, the digital growth isn’t solely limited to consumer engagement, with B2B payments also undergoing a major transformation through the embracing of a new digital culture which was accelerated by the pandemic.
Subsequently it can lead to the growth of digital currency, specifically the central bank digital currency (CBDC), which is emerging globally and has the potential to unlock a new chapter in the current payments landscape.
To conclude the report also evaluated that within the near future banks will bolster their status as technology leaders, and compete with some of the leading firms in the space.