Global Alternative Online Payment Methods 2022

The use of digital wallets accelerated following the COVID-19 pandemic

Alternative payment methods became more frequently used after the COVID-19 pandemic

After the spread of the COVID-19 pandemic, alternative payment methods have come to be more frequently used, specifically digital wallets. The global value of digital wallets is now forecasted to increase from 2022 to reach a value in the trillions of Euros in 2026. Other alternative payment methods have also gained momentum including prepaid cards, BNPL, and bank transfers. The adoption of such alternative payment methods has a high potential of being useful to online merchants. A survey cited in the report reveals that more than one-third of consumers found the acceptance of digital payments to be a factor influencing their store purchasing choice. Moreover, nearly half of online merchants who are not already accepting payments via digital wallets, plan to do so, and almost one third of surveyed small businesses also revealed that their acceptance of new payment methods is an area for growth. The acceptance of alternative methods of payment, such as mobile and digital wallets, by online businesses in Bulgaria has proven to be beneficial with more than one-half experiencing increases in sales share.

BNPL use increases

Aside from cryptocurrency and QR code payments, BNPL is another significant method of payment that continues to increase in presence on a global scale. The number of BNPL users is forecasted to increase from 2021 to 2026 to reach a value in the billions of Euros. The share of BNPL in B2C E-Commerce payments made is also projected to more than double by 2026, compared to what it was in 2021. Furthermore, Klarna was the BNPL provider most used by top E-Commerce websites, holding a notable market share of BNPL services as of March 2022. Klarna’s presence has been growing since 2019, reaching a significant number of users in 2021.