Your Friday fix for global fintech and payments news
This week the Mars Perseverance Rover has provided us with the first audio from Mars and is giving a 360-degree panoramic view of the planet. Back down on Earth and looking at payments news, the BNPL market is set to double over the next four years in the UK, Latin America looks to embrace Open Finance during 2021 and, speaking of embracing change, according to Mastercard, consumers around the globe have made the shift to digital payments and have no plans to turn back.
Our weekly round-up brings you a dose of some of the biggest news announcements from the past seven days so you can keep an eye on all that’s shaping our world this week.
- BNPL expected to double market share in UK e-commerce within the next four years
- More companies will embrace Open Finance in 2021 in Latin America
- Embracing change – the touch-free payment revolution is here
According to data Worldpay’s ‘The Global Payments Report’, the Buy Now Pay Later (BNPL) market was the fastest growing online payment method in the UK in 2020 and is expected to maintain this increase over the next four years.
We brought the news to you recently that the UK Financial Conduct Authority will be regulating companies that offer BNPL services, but even this intervention doesn’t look to pose a threat on the uptake of the payment method, with a year-on-year increase set to be 29%.
Worldpay General Manager EMEA, Pete Wicks said: “We predict that the BNPL sector will not slow down - with the UK market seeing double digit expansion over the next few years. As this happens, it’s important that the frameworks that govern and protect consumers and merchants also adapt to ensure that there continues to be trust and reliability in payments technology.”
According to statistics from Belvo, 84.3% of payment professionals in Latin America think that Open Finance will see a huge uptake during 2021. Better visibility and a favourable regulatory environment have been noted as factors for the expected hike in use.
The survey, performed by leading Open Banking API platform Belvo, took into account the opinions of over 150 payment industry professionals in LATAM and 9 industry regulators. As with the majority of the world, the LATAM market has made the shift towards digital with some consumers using digital services for the very first time due to the pandemic.
Those surveyed believe that digital consumer habits in the region are here to stay, with 96.4% thinking that COVID-19 will increase the digitalisation of the financial industry and 47.3% saying that payment providers will be those most affected.
Mastercard Payment Gateway Service EVP, Keith Douglas shared insights from the ‘Cross-border payments and ecommerce report 2020-2021’, which shows an inevitable shift toward consumer convenience. While contactless payments provided the quickest and easiest way to make everyday purchases at the start of the pandemic, the desire for a touch-free lifestyle has meant other payment methods have sprung up for consumers.
Click and collect, e-invoicing, in-app payments, and pay by link have all have seen a rise in uptake since the pandemic began, with 7 in 10 consumers saying their shift to digital payments will be permanent and almost half planning to use less cash post-pandemic.
Other statistics from the report showed that the US saw a huge increase in e-commerce spending in May 2020 compared to the previous year, with a 93% growth. In the UK around the same time, e-commerce spending totalled 33% of total sales.