Online payments and 2023 economic trends: insights from Macropay's Adam J Clarke

In 2022, inflation has been a significant issue, affecting everyone from consumers to businesses and decision-makers. However, the inflation pressures are expected to ease as the economy slows down. How will this change affect consumer behaviour?

A decrease in inflation will increase purchasing power around the world. This signals that discretionary spending will rise, pumping more money into the economic cash flow.

Another effect is that falling inflation often leads to decreased interest rates, making it easier for consumers to access credit. In order to fulfill payments related to their credit purchases, a good number of people use online payment systems like payment gateways and other digital payment methods.

All those factors drive an increase in online transactions, thus, propelling growth in the online payments industry.

Global ecommerce has outpaced the growth of most other industries over the last few years. With global ecommerce user penetration expected to reach 57.3% in 2023 and 66.2% by 2027, what are the trends that will define the industry this year and beyond? How are high-earning trends such as BNPL and social commerce going to shape ecommerce moving forward?

The modern world will keep requiring more innovation in the payments space. This is a trend that we will experience for the remainder of 2023 and beyond. For instance, BNPL allows ecommerce businesses to offer a more accessible shopping experience, sometimes regardless of the customers’ current financial capacity.

There have also been reports that social commerce is expected to grow at least three times as fast as traditional commerce. It goes without saying that the ways in which customers can pay through their social media apps will grow at an incredible rate. In fact, recent news about WhatsApp Pay has gotten the payments industry excited.

Both the COVID-19 pandemic and recent geopolitical conflicts have shaped global employment growth. If 2020 was the year of remote work, 2022 grew to be the year of massive layoffs. How are these two trends shaping the ways in which employees choose to spend their money?

The slowdown in employment opportunities will force many people to switch to the gig economy to survive. Add on to this the desire to work from home and you have freelancers working from anywhere and relying on online payment infrastructures for anything; from paying their bills, to receiving their salaries, and even accessing their savings.

To be more specific, people who need to use their money remotely is bound to use a digital payment system of some kind, like virtual cards, mobile wallets, digital currencies, and Open Banking systems.

This high demand for digital payment infrastructures will, of course, weed out providers that customers do not prefer to use. Customer preferences continue to lean heavily on secure and easy-to-use platforms.

Ecommerce losses to online payment fraud have also significantly increased over the past year and were estimated to be at USD 48 billion globally, in 2023. How can merchants prepare to fight against it and provide a safe experience to their customers?

In 2023, there will be an increased emphasis on cybersecurity in payments, driven by the expansion of ecommerce, non-cash payments, and cyber threats. Merchants need to strengthen their cybersecurity and meet all compliance requirements. There should be a special attention to creating fraud detection features and educating themselves regarding the modern ways of fraudsters.

Simply said, merchants need to beef up their systems for fraud detection and to make sure that their safety measures are communicated clearly to their user base, further instilling trust.

We already know that people want near-instant experiences when it comes to payments. What are the main solutions you think will take over the stage in 2023? Are there any particular specificities to be taken into account for the B2B payments segment?

The modern world runs on instant solutions. Digital transactions promise real time delivery and this enticing offer will keep people interested in adapting even newer forms of digital payments.

As a result, demand is constantly increasing for alternative payments such as digital wallets, account-to-account (A2A) payments with Open Banking and BNPL. The applications of these newer payment technologies in industries that are yet to fully adapt, like transactions related to farming, should be expected.

It has also been reported that mobile payments will account for 53% of all ecommerce transactions by 2025. This statistic indicates the constant growth and continuous adaptation of more modern payment solutions.

As for the B2B aspect, where businesses that work together usually wire each other big sums of money, it is best to keep their eyes on cybersecurity trends and strengthen their systems to combat the ever-evolving methods of fraud. In fact, we have launched the ‘Macropay Scam Alert’ series to help educate both merchants and their customers against scammers.

About Adam J Clarke

Adam J Clarke’s early entry into the world of sales and his subsequent experience paid off. These valuable skills equipped him with the knowledge and ability to transform a startup into a multimillion-euro company. By forging his own path and relying on his instincts, Adam was able to achieve great success and create a life that he had envisioned for himself. He now heads the fintech company Macropay as the CEO and Founder.

About Macropay

Discover the power of Macropay, the platform that connects international merchants with emerging local payment methods and Open Banking. With a user-friendly onboarding process and a single integration, Macropay offers seamless access to a full range of merchant tools, including integrated fraud prevention and settlements, to ensure a hassle-free payment experience. Say goodbye to limited payment options and embrace numerous local payment methods with the largest market share within their respective regions.