The Changing Payment Method Landscape


Consumers have seen an explosion of online payment methods. Cash may be king offline where it continues to account for over 40% of all commercial transactions, but online, credit cards, debit cards, e-cheques and newer forms of electronic payments, such as mobile e-wallets and cryptocurrencies dominate. In 2018, payment processor TSYS interviewed 1,222 consumers and asked them which payment method they preferred. Fifty-four percent chose debit cards, while 26 percent selected credit cards. Less than 15 percent of respondents specified a preference for using cash. When these numbers were compared to the same survey results from 2017, the respondents’ preference for debit cards rose by 10 percent while their preference for credit cards decreased by 7 percent. Citing high-interest rates and climbing annual fees as the reason for lower credit card usage statistics, it’s clear that more and more consumers are looking for less expensive ways to pay for goods and services online.

Digital Wallets

Mobile payment methods, such as ApplePay, GooglePay and Venmo, are quickly growing in popularity among those under the age of 24, with 27 percent of survey respondents having loaded a debit or credit card into a mobile wallet or app to make a purchase. Despite the adoption of digital wallets by younger demographics, mobile payment use remains a small factor in the overall payments landscape. Less than 3 percent of those aged 65 and older have confirmed that they had used a mobile wallet. However, adoption rates may be hampered by fears over security and concerns that merchants wouldn’t accept payments made using a digital wallet. A study commissioned by JP Morgan Chase revealed that only 36 percent of merchants currently accept digital wallet payments, a figure that drops to 25 percent for small businesses.

Rising Security Concerns

The increased prevalence of high profile data breaches affecting millions of user accounts is affecting how consumers make online payments. The American Express Digital Payments Survey revealed that 37 percent of consumers have abandoned an online purchase as a result of security concerns. Despite these concerns, the frequency of online shopping continues to grow year over year, with nearly 50 percent of respondents declaring that they’ve increased the frequency of their online purchases over the past 12 months. Globally, 35 percent of online shoppers make an online purchase at least weekly. The survey also revealed that plastic is the preferred online shopping method, with Visa Debit Cards, Debit Mastercards and merchant issued credit cards accounting for nearly 82 percent of online payments.

Person to Person Payments

Since 2014, mobile person to person (P2P) payments have become an increasingly important battleground for financial institutions, tech giants and fintech startups. Bank of America’s 2018 Trends in Consumer Mobility Report revealed that younger consumers have rapidly embraced P2P payments. While only 44 percent of survey respondents said they used P2P payments, 51 percent of millennials report using the service at least once a month. The adoption of person to person mobile payments is primarily due to the service’s convenience and time-saving ability, with near real-time payment processing enabling recipients to receive funds often in less than one minute.


The global cryptocurrency market is projected to reach USD 1.4 billion by 2024, with an estimated compound annual growth rate of 6.18%. Entrepreneurs, start-ups and large as well as small and medium-sized enterprises are looking to digital currencies, like Bitcoin, Tether and Ethereum, to foster financial inclusion for millions of the world’s underbanked citizens. With a combined market capitalization value exceeding $200 billion, cryptocurrencies are going mainstream with hundreds of major companies accepting the digital currency as a payment method. You can now book a transcontinental flight, pay university tuition and purchase an electric vehicle all with bitcoin. With over 1,600 cryptocurrencies available for consumers to buy and sell, it should come as no surprise that global adoption rates are steadily climbing, with many regions boasting usage rates above 20%.

Paying Bills Online

Fiserv, an online bill payment provider, revealed that more than 90 percent of households used more than one payment method for paying bills. Consumers are increasingly using mobile devices to make payments to service providers. With more than 33 percent of those surveyed reporting having paid a bill on their smartphone, this represented a 22 percent increase from the previous year’s survey results. Despite this shift, the most popular payment methods for bills remained the biller’s website followed by financial institution sites.

The SolidTrust Pay Advantage

As a leading provider of payment processing solutions, we are committed to providing our members with innovative services. That’s why you can now buy and sell 10 Cryptocurrencies with your SolidTrust Pay e-wallet. We’ve also made it easier to send payment requests to friends, family members and business associates. You can conveniently receive payments with our Click2Pay Invoice service and the best part is your recipient doesn’t need a SolidTrust Pay account to pay you.

Finally, we’ve made it easier for our members to take care of their loved ones by providing access to over 800 billing companies in 18 countries. With Bill Pay Your Way, you can make international bill payments from your SolidTrust Pay e-wallet and ensure that your family is never without the services they depend on.  Your SolidTrust Pay account is so much more than a convenient e-wallet; it’s a gateway to a thriving global community dedicated to service!

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