Nearly nine in ten consumers worldwide have made digital payments using digital wallets, contactless, QR codes, buy now pay later, money transfer apps, cryptocurrencies, biometrics and other digital payment technologies (85%) and more than six in ten say they have increased their usage of at least one digital payment method (61%) in the last 12 months, according to a Mastercard survey.
The card network’s New Payments Index 2022 shows that the proportion of consumers who have increased their usage of digital payments is greatest in the Asia Pacific (69%) and the Middle East and North Africa (64%) regions, compared with 52% in North America and 48% in Europe.
Globally 35% of respondents to the survey said that they used less cash in the last year, although this percentage was higher in Asia Pacific (40%) and lower in the Middle East and North Africa (19%).
When asked specifically about biometric payments, more than two-thirds of respondents say they think authenticating payments using biometric technology is more secure than using a PIN or password while just under two-thirds agree that it is easier to pay with biometrics than using a payments card (61%), rising to 64% in the Middle East and North Africa (MENA) and 70% in Asia Pacific (APAC).
“Buy now, pay later (BNPL) has become one of the hottest trends in payments in recent years,” the researchers add.
“Four in 10 respondents say they are comfortable with using buy now pay later, although more than six in 10 agree they would feel safer and be more interested if a plan came from a trusted provider.”
Uptake of BNPL has been above the global average in APAC where 50% of consumers say they are comfortable using it today and 55% saying they are likely to use it in the next year.
“While the Covid-19 pandemic was the catalyst for the unprecedented, rapid uptake of digital payments, the latest research indicates that the change has been lasting,” the researchers add.
“Despite this swing to digital forms of payment, respondents frequently indicated that they had reservations about the security and institutional backing of these new options. In fact, when deciding which payment method to use, security had the greatest influence on consumer choice, beating out discounts or promotions, rewards and even low interest rates.”
Mastercard’s New Payments Index 2022 is based on a survey of 35,040 consumers in 40 markets worldwide.Mastercard’s 2021 New Payments Index showed that more than 90% of consumers were considering using digital payments in the year ahead in May 2021.
Mastercard reports on growth in consumer adoption of emerging payments technologies was written by Tom Phillips and published by NFCW.