Real-Time Payments

Real-time payments (RTP) enable immediate transfer of funds through a sophisticated network and a payments platform that processes 24/7. This technology offers numerous benefits, including improved cash flow, streamlined bookkeeping, and greater transparency for customers.  According to ACI Worldwide, RTP transactions are projected to grow at an annual rate of 42.2 percent, reaching a total volume of $575 billion by 2028. This rapid growth highlights the increasing demand for efficient and instant payment solutions, which could make RTP an in-demand part of modern payment ecosystems.

Digital Wallets

Now an established payment trend, digital wallets are projected to account for half of all point of sale transactions by 2027. This surge in adoption will come on the heels of more than half (56.9 percent) of the U.S. population forecasted to use a digital wallet this year, a total of 161.6 million users. What’s more, while consumers are embracing this technology for its security and convenience, merchants can reap the benefits of digital wallets to their bottom line. According to a survey from PYMNTS and AWS, consumers who use digital wallets spend 31 percent more than non-users.

P2P Payments

Peer-to-peer payments are growing in popularity, especially among millennials and Gen Z. Currently, 60 percent of U.S. consumers use P2P apps, reflecting the behavioral shift towards convenient and easy payment methods. P2P payments are ideal for consumers to transfer funds to friends, split bills, collect payments for shared experiences, or accept payments for a “side hustle.” However, this trend is gaining more than just consumer traction; 49 percent of merchants accept P2P payments from their customers, expanding payment choice to meet their demands.  

Biometric Payments

Biometrics is among one of the newer payment trends, driven primarily by Gen Z consumers who scan their palm vein, facial features, or iris to pay securely. The scan is associated with cardholder data on file and only a matching scan can authenticate payments from those accounts. Research projects that biometrics will authenticate over $3 trillion in mobile transactions by 2025, demonstrating considerable growth over 2020’s $404 billion.

Crypto Payments

While some consumers still view cryptocurrency as an investment, using it to pay is on the rise. New data from PYMNTS and BitPay indicates that nearly 80 percent of crypto consumers have used Bitcoin to pay in stores or online, showcasing the growing acceptance of crypto payments in everyday transactions. Additionally, 66 percent of consumers have utilized crypto-based debit or gift cards, making it easier to integrate as a payment option. With 26 percent of all consumers expressing interest in using cryptocurrency for payments, it’s clear that crypto is steadily transitioning from a niche investment to a mainstream payment trend.

BNPL

Buy now, pay later (BNPL) services currently have a relatively low penetration rate with about 9 percent of U.S. consumers using them as of 2023. However, this was an increase of 40 percent from two years earlier and makes BNPL payment trends among those to watch. BNPL offers a short-term, interest-free loan option that can appeal to consumers over traditional credit options with interest, or for those who lack other options for accessing credit. In a significant development, the Consumer Financial Protection Bureau announced in May 2024 that BNPL lenders will be classified as credit card providers. This new classification grants consumers the right to dispute charges and demand refunds, providing additional protections and enhancing the apparel of BNPL services.