Worldpay®world leader in technology and payment solutions, announces the tenth edition of the Global Payments Report (GPR), an annual analysis that has mapped a decade of transformation in the way consumers make payments worldwide.
Juan Pablo d’Astochia, general manager of WorldPay in Latin America, said the GPR It is a comprehensive annual study that provides valuable information on the trends that have defined the past, present and future of payments.
This year’s report analyzes a decade of data to highlight the evolution in payment habits since its launch in 2015, while analyzing the trends that will shape payments until 2030.
According to report data, it is estimated that the electronic trade market in Mexico will reach 72 billion dollars in 2024, with a projection of 104 billion dollars by 2030.
“In the last ten years there have been drastic changes promoted by technological adoption, the rise of the Fintech, as well as a changing regulatory panorama,” said Gabriel de Montesssus, president of the World Enterprise of WorldPay.
Mexico lives accelerated digitalization
The panorama of payments in Mexico is changing rapidly, with a marked transition to digital payments:
- Digital wallets: its use has quadrupled, moving from 6% of the transaction value of electronic commerce in 2014 to 28% in 2024, with a 37% projection by 2030.
- Credit cards: They are still the preferred online purchase method, representing 34% of the transaction value in 2024.
- Debit cards: although credit cards continue to lead online purchases, debit cards represented 20% of online spending and 24% of the costs in stores in 2024, since this method plays an important role in the transition towards abandoning cash.
- Cash: although it continues to predominate at points of sale, its use has decreased from 76% of the value transacted in 2014 to 35% in 2024, with a 31% projection by 2030.
A global look at the transformation of payments
The evolution of smartphones has promoted the significant growth of electronic commerce and has remodeled the way consumers pay in the last ten years:
● The global transaction value of electronic commerce increased from 1.2 billion dollars in 2014 to 6.8 billion dollars in 2024, an increase of almost six times.
● The participation of mobile devices in global electronic commerce transactions by value was tripled in a decade, from 19% in 2014 to 57% in 2024.
From an essential alternative, consumers have made digital payments the new normality:
● Digital wallets now dominate, capturing 53% of world expenditure in electronic commerce and 32% at the point of sale in 2024.
● Between 2014 and 2024, the use of digital wallets multiplied by ten worldwide, both online and in stores, and now represents an expense of 3.6 billion dollars and 12 billion dollars, respectively.
● Buy Now, Pay Later (BNPL), or buy now and pay later, had a rapid adoption worldwide, where online spending grew from $ 2.2 billion in 2014 to $ 342 billion dollars in 2024. However, in Mexico its adoption remains low, with only 1% of the expenditure in electronic commerce in 2024.
● Worldwide, the value of cryptocurrency is expected to be a consumer payment method to be doubled in the next five years, reaching 38 billion dollars in 2030.
“Although the cash has decreased dramatically throughout the world since we launched the first edition of the report, the prophecies of the societies without cash have not been completely materialized. Now we are seeing that the use of cash has reached a relative floor in many larger markets, and the decrease rate has been significantly slowed compared to the years immediately after the pandemic,” said Gabriel de Montentsus.
The future of payments in Mexico
The report projects that digital payments will continue to gain ground:
● In Mexico, digital wallets will represent 37% of the value of electronic commerce by 2030.
● The cards will continue to be key, but with a transition towards use within digital wallets.
● The cash will continue to decrease, although its use in Mexico is the highest of Latam, with 35% of the value transacted at the point of sale by 2024.
“The progress of digital payments and new technologies will continue to transform trade in Mexico. Fintech, financial innovation and the evolution of consumers’s habits will dictate the future of the payment industry in the region,” concluded Juan Pablo D’Astochia.
