What are the key trends shaping the payments marketplace in 2021?
2020 was a year like no other with the ongoing pandemic and global lockdowns. The Paypers’ ‘Who’s Who in Payments 2021’ report outlines how the events of last year have accelerated several key trends that are reshaping the payments marketplace.
In this fast-moving world of payments and fintech, Mollie was delighted to be named in this year’s report as a PSP that has thrived and seized the opportunities presented in online retail and marketplaces.
Here are the key trends that are reshaping the payments marketplace:
1. POS to online, cash to cards: COVID-19 significantly shifted consumer behavior towards payments and commerce, with ecommerce and mobile payments rising rapidly and the use of cash declining at an unprecedented rate. Much of the growth in contactless transactions comes from mobile payments, which are ubiquitous with 1.5x or more incremental increases in usage during the pandemic.
2. The crypto boom: Today there are more than 5,000 cryptocurrencies worldwide with a value of more than USD 1.5 trillion. Cryptocurrencies exploded in both valuation and legitimacy. No longer do questions hang over the viability of crypto as a means of payment and store of value. Payment networks are also positioning to benefit from crypto, extending their network support for crypto settlement.
3. The convergence of SaaS and fintech: Now more than ever, SaaS platforms are increasingly becoming major actors in the payments arena worldwide. In Europe, the convergence of SaaS and fintech is fully expected to become a defining trait of European payments within the decade.
4. Payments-led digital disruption of banking and lending: Digital technologies are reversing the trend towards siloed payments through mobile and cloud technologies. Payments market leaders are leveraging their huge customer bases and powerful digital platforms to attack the banking and lending market.
5. In a year where finances were under such strain, it makes sense that BNPL fintechs performed phenomenally well. Companies such as Klarna and Afterpay have exploded in popularity over the past year by addressing consumer credit with innovative, real-time lending technologies coupled into the checkout experience.
As a result of the events over the last year, the payments industry has accelerated in both innovation and globalization. Winners are thriving by breaking down geographic borders and channel silos, through working with SaaS platforms, and leveraging their digital platforms to offer an expanded portfolio of fintech services.
To find out more, you can read the full report here.