Key digital payment trends: What to expect from the retail industry in 2023

Monday 5 December 2022 08:41 CET | Editor: Irina Ionescu | Interview

Eelco Dettingmeijer, SVP for Europe at Nuvei, discusses the main trends for the digital payments industry in 2023 and how can companies focus on making their digital payments easier to drive revenues and higher authorisation rates.

What worked and what didn’t work for retailers regarding digital payments in 2022?

The world of payments has completely transformed in the last decade. Gone are the days when a business’s priority was accepting payments digitally. Businesses selling online in today’s ecommerce environment, especially in the highly competitive retail landscape, should display a certain level of maturity when it comes to how they approach their payment strategy.

This maturity is largely reflective of the fact that the payments world is increasingly complex and fragmented, which can pose a challenge – especially to businesses operating across a multitude of jurisdictions globally. To be successful, a company’s payment needs often require a customised solution built to help them accelerate business revenues.

Not all businesses across the retail vertical have shifted their perception of payments as a revenue accelerator and adjusted their approach to maximise this potential. So, I would say that’s where the biggest opportunity currently lies within the sector.

What are the main trends to keep an eye on in the digital payments sector for the upcoming year?

In online retail, particularly for complex models like marketplaces, the payment provider role has evolved from service provider to strategic partner, helping retailers drive customisation, improve conversion, and optimise performance.

As more businesses will be looking to turn their payment strategy into a revenue accelerator in 2023, lowering processing costs and boosting revenue are quickly becoming key themes. But here are five payment trends to watch in the coming year:

1. One-click mobile payments

Mobile commerce makes up 73% of the total ecommerce market. This is a sizeable share and it’s only predicted to increase, as 4.4 billion global consumers will shop with a digital wallet by 2023. But mobile purchases have the highest rate of abandonment, at 86%. So, businesses are leaving money on the table by not optimising their payment flow to suit the simplicity and convenience of on-the-go shopping. We expect to see more investment in creating mobile-optimised customer journeys as well as more inclusion of digital wallets as a payment method.

2. Embedded finance 

Embedded financial services, while not new, will become more widely available across multiple consumer touchpoints. Examples could include a travel operator providing insurance or a retail business offering branded credit cards. 88% percent of companies that implement embedded finance report increased engagement, and 85% say that it helps them acquire new customers.

We expect to see more around this trend in the retail space either through branded or pre-paid cards or diversified revenue streams with iBanking. 

3. A focus on Online Bank Transfers 

 Globally, over 70 billion transactions were conducted via an instant payment system in 2020, and this figure is predicted to reach 199 billion by 2024.

This growth is being driven predominantly by two factors: greater connectivity to the RTP network and a growing preference for direct bank transfers by consumers and businesses generally. So, we’re preparing to see more retail businesses consider the integration of Online Bank Transfers into their payment strategies. 

4. Card instalments 

The global payment landscape is increasingly local in terms of preferred methods, currencies, and regulations. If a customers’ card transactions are declined, offering more methods can avoid losing the sale.

According to Visa, payment instalments represented a USD 1.6 trillion market value in 2020 and are up 5% year on year. In contrast, credit card expenditure declined by 4% globally.

Other research indicates that 6% of consumers abandon carts because of a lack of payment options, while 18% give up because of price. Instalment payments boost conversion rates as well as improve repeat sales, accelerating a company’s revenue.

While BNPL options like Klarna already exist around the world, traditional card schemes like Visa will soon allow consumers to choose instalment payments at some of the largest retailers, including Simons, Canada Computers, Soft Moc, and Trévi in Canada.

How can companies make digital payments easier and faster in 2023? What should be their main focus in the next 12 months?

It’s been proven, time and time again, that strategic payments can accelerate business revenue. As mentioned in the previous question, we expect to see many businesses adopt the latest payment trends like one-click mobile payments, embedded finance, and online bank transfers to reduce costs, improve conversion and boost revenue.

Another way in which retail businesses can simplify and streamline their payment strategy is through implementing Payment Orchestration. Adopting Payment Orchestration through one holistic payment partner gives online sellers more control over their entire payment ecosystem. Removing the complexity of juggling multiple providers, lowers fees, improves visibility, and unifies data streams.

Finally, how can Nuvei’s solutions contribute to a brighter future of digital payments?

At Nuvei, we’re fully committed to supporting our customers accelerate their revenue through payments. Though our proprietary technology stack, we can customize our solution to meet the need of every business, of every size, across a wide variety of verticals. We believe in a future where digital payments are frictionless, fast and easily accessible to all.  

About Eelco Dettingmeijer

Eelco Dettingmeijer is Nuvei's SVP for Europe. He heads a growing team responsible for Nuvei's commercial growth strategy as well as nurturing the company's existing customers across the European region. Hailing from the Netherlands, he holds a bachelor's degree in business from the Rotterdam University of Applied Sciences and a master's in International Payments Ecosystem from Middlesex University. In his spare time, he enjoys running, cycling, and spending time with his family.

About Nuvei

Nuvei is the Canadian fintech company accelerating the business of clients around the world. Nuvei’s modular, flexible, and scalable technology allows leading companies to accept next-gen payments, offer all payout options, and benefit from card issuing, banking, risk, and fraud management services. Connecting businesses to their customers in more than 200 markets, with local acquiring in 45+ markets, 150 currencies and more than 580 alternative payment methods, Nuvei provides the technology and insights for customers and partners to succeed locally and globally with one integration.

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Keywords: digital payments, digital banking, online banking, online authentication, online payments, mobile payments, digital wallet, e-wallet, embedded finance, embedded payments, bank transfer, instalment payments, credit card
Categories: Payments & Commerce
Companies: Nuvei
Countries: World
This article is part of category

Payments & Commerce


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