The author is Sr. Marketing Manager of Ingenico.
In a world where innovation in consumer habits is constant, businesses that are at the forefront in the diversification of payment methods and are always one step ahead will be the leaders of tomorrow, the most sought after and with the best growth over time. unlike those who remain on the sidelines.
And, today more than ever, consumers have more power when making their purchases. They are the ones who decide the channels to acquire their products (physical, e-commerce or hybrid), and, above all, who determines the way to pay. The stage of being subject to the provisions of a business is left behind; today, if there are no alternatives that cover their needs, they easily leave, which drives the optimization of payment methods. The sector has known this for a long time, so it is already reinventing itself, but what changes are being experienced?
With technology rapidly evolving, the payments industry is entering an era of transformation with an eye toward a future of need fulfillment created by a distinctly local intersection of options. In this era, cash, the favorite payment method in Mexico, followed by credit and debit cards, will continue to have an important place in consumer transactions, although they will adopt new functions that facilitate their use and possibly, some (the cash), lose the lead in the favorites.
Among the main results of the payment transformation, digital wallets stand out and are on the rise. With a popularity of 11% recorded at the point of sale during 2023, this method expects a boom of 17% by 2027, while in e-commerce, The 28% registered in 2023 expects to grow to 37% in the next three years. Together, the wallets can generate a total of $25 billion and a 49% share of the preferred payment method, according to the Worldpay Global Payments Report 2024.
But wallets won’t be the only co-stars in the new era of payment methods. The technology contactless at the point of sale will continue to grow, although there are still challenges to overcome: that issuers continue to implement it and the promotion of change in use by the population, guaranteeing greater security and great benefits.
In this sense, the companies that are part of the payments sector have a fundamental role, since they are the ones who create the conditions of use and adoption of methods in the population and, above all, those who facilitate the incorporation in businesses. Ingenico is an example of this by designing payment solutions that allow us to transition to the new era of payments in a more efficient way, always staying ahead of customer trends and habits.
For Ingenico, the key to comprehensive adoption in payment methods is not limited to offering innovative devices or terminals. It is about creating experiences from a process that may seem merely mechanical, that is, making payment with cards, digital wallets, QR codes or any method preferred, a unique experience for users, offering transactions without complications and adding value. for businesses with options such as rewards, loyalty programs or special discounts.
But this process is not easy, it requires a lot of work and, above all, the collaboration of other players in the industry, something that Ingenico has worked on gratifyingly in recent years. Through alliances with banks, acquirers, payment processors and technology service providers, the company has designed better solutions, including alternative payment methods and promoting other acceptance methods such as contactlesswhich in Mexico still requires efforts for its growth.
At the same time, collaborations allow us to pay attention to other trends such as transfers (A2A), Buy Now Pay Later (BNPL), prepaid and postpaid cards, which, according to the Worldpay Global Payments Report 2024, will be important players in the industry in the following years. months, so action must be taken quickly. Ingenico is leading the way in paving the way for adoption and evolution, and helping to transform payment culture in Mexico.
Progress is underway, but achieving full adoption of innovative payment methods will take time. The good news is that, as an industry, we continue to move forward and leave limitations behind to focus on solutions that will make our future competitive and focused on people power. We are in an era where consumers are driving payments and where disruption is seen as a push for new opportunities.
