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Key stat: Boomers are the least likely to use proximity mobile payments, with only 9.5 million expected to use digital wallets this year, per our forecast. However, 73% of boomers surveyed by Razorfish consider technology important to manage their money. Why it matters: Boomers’ openness to financial technology presents a significant opportunity.

South Korean super app Kakao had a nationwide outage that disrupted communication, prevented mobile payments from going through, and stranded passengers trying to use ride-sharing services. WhatsApp, Meta’s messaging app, suffered a significant outage for two hours, which resulted in spiking global searches for alternative messaging apps.

The digital wallet’s rollout has been slow, but we expect strong uptake in 2025 thanks to its innovative features and bank integrations

Dramatic shifts are in the works for 2024, as BaaS, social media players, genAI, and new digital wallets reshape the banking landscape. Our top trends explore what’s in store.

Conference panelists discussed changes in the maturing industry as it ripples across the payments space

Super apps: Platforms like Alibaba and Tencent created combination entertainment and shopping platforms that feature mobile payment solutions. In comparison, US shopping platforms lack a social/entertainment factor, while US social platforms don’t inherently have mobile wallet features.

Proximity mobile payment penetration will hit a record-high 43.2% of smartphone users this year, according to our forecast. And per-user spending will exceed $5,000 for the first time, thanks to growing acceptance and user experience improvements.

US proximity mobile payment transaction value will grow 32.0% in 2023 to reach $549.47 billion. Generative AI can create personalized messages based on customer data analysis, so customers receive tailored product recommendations, promotions, and payment options. Issuing banks. Issuing banks earned $145.1 billion on credit card interest alone in 2022.

Canadian P2P mobile payments usage will remain low over the next few years as growth peters out. It will plunge from 4.5% in 2023 to just 1.9% in 2027, leaving penetration below 35%. It’s not an anomaly: Canada lags the digital pace set by leading Western economies across payment types. Mobile payments have been particularly slow to catch on, which has trickled into P2P preferences.

Southeast Asia may be a key expansion market for Alipay+ thanks to the region’s increasing mobile payments penetration: More than 71 million people across six Southeast Asian countries will use proximity mobile payments in 2023—up from 64.7 million this year, per Insider Intelligence forecasts.

Nearly a third of UK adults reported being registered for at least one mobile payments service in 2021, per UK Finance. This is well above usage rates in the US and Canada. And per the same UK Finance report, 16- to 24-year-olds are five times more likely to be registered than those 65 and older. BNPL payment value share will double as older consumers play a larger role.

Dramatic shifts are in the works for 2024, as genAI, changing media norms, and innovative commerce redefine the business landscape. Our top nine trends explore what’s in store.

Related content: Check out our Southeast Asia Proximity Mobile Payments Forecast 2022 spotlight report to learn more about mobile payment penetration in Vietnam. This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.

According to finder.com, it's already the most popular mobile payment service in the UK with around 69% of those who've used mobile payments in the previous year opting for Apple Pay. That's ahead of PayPal, which was at 31%, and Google Pay, which was at 27%. I know that some of the other providers are innovating, but so is Apple Pay.

And we even saw that with mobile payments, right? Mobile payments in a big way really hit the seed in the US in 2014. That's when Apple Pay launched. But customers didn't really start to warm up to them until 2019 and it was only in 2020 and 2021 that we saw adoption get closer to a critical mass. This is going to be similar and could maybe even be a bit slower. Sky Canaves:.

No other market in the world comes close to China when it comes to ecommerce. Its highly competitive digital market has spurred retail innovations that are making their way around the world.

And emerging methods hold significant opportunity: Consumers increasingly want to use proximity mobile payments and buy now, pay later, while account-to-account payments can reduce SMB costs relative to card payments. Mobile point-of-sale (mPOS) and software POS (softPOS) technology could attract a wider ambit of SMBs and tighten integrations.

Establishing these connections is important for global providers that want to gain a foothold in China’s remittance market: Mobile payment users are expected to account for 65.1% of China’s population this year. The bigger picture: As regulators tighten their grip on Tencent and rival Ant Group, these players are building stronger ties with global payment providers to bolster business.

Buy now, pay later (BNPL) payment value will rise 14.8% annually from 2023 through 2027, as BNPL fintech leaders adapt to a maturing market by diversifying product offerings and harnessing demographic trends.

We expect 298.8 million people in Asia (excluding China) will use proximity mobile payments by the end of 2022, up from 269.7 million last year, per our forecasts. Earlier this month, Alpay+ introduced D-Store, a one-stop shop for brick-and-mortar merchants that want to bring their business online. Popular brands like Burger King have already adopted the solution.

Apple’s credit card, BNPL product, and savings account put it in direct competition with financial services incumbents. With 130.1 million US iOS users loyal to its unsurpassed UX and dominant digital platform, the threat will only grow.

Other behaviors US adults avoid include opening emails (47%), using mobile payment apps (42%), and shopping online (26%). Use this chart:. Assess the cybersecurity threats facing North American consumers. Understand consumer hesitation to clicking on ads or sharing personal information. More like this:. Will there be a federal privacy law?

The digitization of the store—retail’s next megatrend—will transform the shopper’s path to purchase and industry economics for retailers and brands.

The contrasting global smartphone market: North America is caught in the thrall of the Apple and Google smartphone duopoly that is focused on handsets but extends across ecosystems including wearables, fitness, entertainment, and mobile payments.

Leading cash-back credit cards need to drive acquisition in an increasingly competitive segment of the card market. Our exclusive consumer survey data reveals which emerging features issuers should invest in to win over customers.