eWallets or Cash on Delivery: Which Payment Methods Do Global Merchants Accept?

Cybersource’s 2022 Global Fraud and Payments survey asked merchants around the world what payment methods their organization accepts and which of those payment methods they have added in the past year. 

The report shows that eWallets, Bank Transfers, and Cards are the top three payment methods accepted globally. Among the methods that were most frequently added, eWallets, mCommerce, and Bank Transfers lead the way.

68% of merchants offer payment via Digital Wallets or eWallets, which store user data, bank and card information, and documents such as tickets and coupons in a cloud. Digital Wallets are easily accessible and provide reliable proof of identity, although security breaches are still possible through the acquisition of sensitive information or theft of devices. At the same time, eWallets were the most frequently added payment method in the past year, with 45% of survey respondents having implemented the method in this time period. 

Bank Transfers comes in second, with 64% of merchants reporting that they accept this method. Already being widely accepted, 24% of merchants added Bank Transfers to their accepted payment methods in the last 12 months, which is the third highest number in this ranking.

The third most accepted payment method is Cards, cited by 58% of respondents. A lesser share of 17% of merchants added this payment method in the past year, indicating a waning importance of Cards for eCommerce in comparison to the other methods. 

Close behind is mCommerce mobile payment at 57%. Mobile payment, of course, refers to payments made via mobile phones. Again, the methods of access are varied, ranging from QR codes to mobile web-based payments or banking apps. Mobile payments are on the rise, as indicated by 35% of merchants whose organizations added mCommerce payment options in the past year.

Interestingly, less than half (45%) of eCommerce merchants still accept Cash on Delivery (CoD). However, it seems as though not many merchants think that cash payment will be relevant in the future, as only 17% of them added cash payment options in the past year.

The three least accepted payment methods are Gift Cards (32%), Third-Party payments such as Cryptocurrency (30%), and Buy Now, Pay Later (29%). The percentages of merchants who recently added these methods are 18%, 22%, and 21%, respectively. These comparatively low percentages can be attributed to the novelty and insecurity of these payment options, since Gift Cards and Vouchers can be tampered with, and BNPL poses a risk of default. Since not a large portion of the world’s population has access to Cryptocurrencies, the rarity of this method can be attributed to its comparative novelty and niche relevance.

Online Payments Dominate eCommerce, While Cash, Crypto, and Installments Lag Behind

Digital Wallets and mobile payments are the fastest-growing payment methods, with 45% and 35% of merchants adding them respectively in the past year. This highlights the trend towards convenient and easily accessible real-time payments that include identity verification to help secure transactions.

CoD is still accepted by less than half (45%) of eCommerce merchants, with only 17% adding this payment method in the last year. This suggests that cash is losing popularity as a payment method, especially in the context of online shopping.

Gift Cards, Third-Party payments such as Cryptocurrency, and BNPL are the least commonly accepted payment methods. This can be attributed to the novelty and partial insecurity of these payment options, with low adoption rates suggesting a lack of trust among merchants.

SOURCES 

Cybersource 

Lyra