Insights into Payments and Beyond

Payment Methods Report 2023

Understanding How People Pay Across Regions and Verticals

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Payment Methods Report 2023
Understanding How People Pay Across Regions and Verticals

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 Foreword
Dear reader,

Thank you for being a valuable part of The Paypers’ audience and for downloading our latest Payment Methods Report 2023.

In a highly digitalised world, industry players – especially merchants, payment method providers, PSPs, and fintechs – push innovation

forward in an attempt to provide an enhanced customer experience, seamless checkouts, and a frictionless shopping process – both online

and in store. The key trends that defined ecommerce and the payment space in the past few years – among which convenience, speed, and

security – continue to be at the core of payment developments, driving competitivity and growth. With the aim of continuing to shed light on

the most recent industry updates, the 8th edition of the Payment Methods Report features insights into the latest technologies deployed to

improve the global payments ecosystem, providing a clear overview of how customers prefer to shop and pay and how merchants can meet

these ever-changing needs.

What you’ll find in the report

Latest trends in the payment methods space in 2023
The three biggest trends in the payment ecosystem this year include cross-border payments and the solutions to the challenges they pose,

the complexity of payment methods and how merchants decide which ones best fit their business models, as well as the acceleration of

instant payments.

The latest updates in the BNPL world, together with the crypto winter and the surge of payment orchestration, have also proven important

topics in the field, with many companies acknowledging the need for in-house payment orchestration solutions to better cater to the needs

of their customers.

Globally trending payment methods

BNPL continues to remain a hot topic in the payment industry, with over 500 million customers globally, and hundreds of providers aiming to

meet the specifications of each market. Even though many countries stepped forward in regulating BNPL, the main difference from previous

years is the growing appetite and need for B2B BNPL services.

The adoption of Open Banking and A2A payments is also on the rise, with clear benefits for ecommerce and end-users. As more countries

choose local schemes to transfer funds faster, easier, and less costly, A2A payments are challenging the status quo of card schemes and

their high fees.

If you’re looking for a global overview of the BNPL and A2A payment methods, check out The Paypers’ extensive research featured in this

edition of the report, completed with insightful infographics that show how widely adopted these types of payments have become worldwide.

Globally, companies aim to provide seamless customer experiences by leveraging white-labelled solutions, while e-wallets continue to grow

in popularity, especially in Asia, where they are looking up to super apps. The potential of tap-to-pay payments is immense, driving not only

digitalisation but also financial inclusion and a smarter, easier way of paying.

Finally, biometric payments, the development of GenAI, and the deployment of state-of-the-art machine learning technologies are expected

to become the new norm in payments in the next five years, while more countries are running pilot programmes to include stablecoins as an

alternative to cash. Recouping after the crypto winter, merchants still consider adding cryptocurrencies to their wide array of payment methods

in order to grow revenue and attract younger consumers. ➔

3 Payment Methods Report 2023 | F OREWORD

 Latest updates in payment habits
The culture of influencers and live commerce is yet another factor contributing to the transformation of the payments and ecommerce space,

as Gen Z and millennials count for most of the active population segments across the globe. Based on their alert and active lifestyles, the

payments industry must develop and adapt, becoming not only faster, but more inclusive and less expensive.

In addition, gig economy continues to be on the rise, as are concerns regarding a potential global economic downturn and how it will impact the

financially excluded population. Gen Z and millennials are also the most prone generations to financial exclusion, experiencing more destabilising

economic trends in the past decade than any other generation. The COVID-19 pandemic generated a worldwide housing problem, while the

high inflation rates perpetuate a strong disparity between salaries and the cost of living. As a result, these uncertainties force not only people

to reconsider their spending and finances, but also companies to create sustainable business models that can thrive or survive during turmoil.

BNPL providers are faced with scrutiny on whether their lending mechanisms will lead to over-indebtedness in a class of individuals who are

already seeing pay cuts, unemployment, and rising prices. At the same time, PSPs and merchants are pioneering seamless transactions, while

national and international regulatory bodies aim for enhanced transparency and security, consumer affordability, fair overdue payment plans,

and encouragement for timely payments through the new Consumer Credit Directive 2 (CCD2) and PSD3.

Checkout optimisation and payment integration: improving conversion and retention rates
Creating a seamless checkout experience was the talk of the year at international payment forums and conferences. This section of the

Payment Methods Report was created to compile the essential aspects in the field of checkout optimisation to reduce cart abandonment

rates, while also providing the necessary level of data security for payees.

You will learn more about the importance of a customised checkout process and what the drivers for APMs adoption are. Moreover, seasoned

payments professionals from Kiwi.com, Vestiaire Collective, Gameforge, OnBuy, and Fiverr discuss the best practices for optimising checkout

and provide a perspective on how the younger generations will ultimately shape the future of digital payments.

We invite you to further explore our Payment Methods Report 2023 and find out more about the modern payment landscape. Specifically

created with merchants, PSPs, fintechs, and enterprise leaders in mind, the report encompasses the latest trends in the world of payments –

and will benefit all the players in this space by featuring insights on specific industry topics.

To all our contributors – thank you for sharing your knowledge with us!

To all our previous and future collaborators, as well as everyone else – enjoy your read and feel free to spread the word!

The Paypers Team

4 Payment Methods Report 2023 | F OREWORD

 Table of Contents

3 Foreword

7 Payment Methods in Focus and Future Developments

8 Latest Trends in the Payment Methods Space in 2023 | Nick Maynard, Juniper Research
10 Merchant Payments: How Customer Expectations and Experiences Will Change by 2030 | Adam Caines, Payments
Consulting Network
12 Buy Now, Pay Later
13 The Consumerisation of Short-Term Lending Solutions: BNPL in B2B | Louis Wapler, Edgar, Dunn & Company
15 BNPL: Exploring Emerging Applications and Regulatory Developments | Frida Polyak, Euromonitor International
17 Buy Now, Pay Later: the Real Value Is in B2B Payments | Louis Carbonnier, Hokodo
19 The Payment Preferences of German Consumers and the Future of BNPL in the Country | Interview with Nina Pütz,
Ratepay
21 The Importance of Regulating the Buy Now, Pay Later Sector: Tinka’s Perspective | Karlheinz ‘Charly’ Toni, Tinka
23 The Challenges of BNPL in a ‘Polycrisis Context’ | Andréa Toucinho, Partelya Consulting
25 Global Overview of B2C and B2B BNPL Providers
26 Introduction
27 B2C BNPL Providers – Americas
28 B2B BNPL Providers – Americas
29 B2C BNPL Providers – APAC
30 B2B BNPL Providers – APAC
31 B2C BNPL Providers – Europe
32 B2B BNPL Providers – Europe
33 B2C BNPL Providers – MEA
34 B2B BNPL Providers – MEA
35 Account-to-Account and Instant Payments
36 The Importance of Real-Time Payments and Their Benefits for Merchants across the Globe | Interview with Andrea
Plos, Discover Global Network
38 The SRTP Scheme: Steady and Ready to Take Off in 2023! | Dominique Allebroeck, European Payments Council
40 Pay by Bank Is Ready to Shine in the US Market | Shaun Vanderkaap, Link Money
42 The A2A Adoption and Its Benefits for Businesses and End-Consumers | Interview with Clement Jozwiak and Nathalie
Crouzet, Worldline
44 Global Overview of Account-to-Account Payment Methods
45 Introduction
46 Local A2A Schemes
47 Methods Leveraging Open Banking
48 Mobile Payments
49 The Main Benefits and Pain Points of Carrier Billing | Interview with Clemens Leitner, DIMOCO Payments
51 Will the Digital Wallet Replace the Physical Payment Card? | Mark Beresford and Elisabetta Nadal, Edgar, Dunn & Company
54 Digital Payments in Asia Are Still in a Liminal Phase | Joshua Chong, Kapronasia

5 Payment Methods Report 2023 | TABLE

 OF CONTENTS
 Table of Contents

56 Debit and Credit Cards

57 The US Debit Card Spending – Higher and More Efficient than Ever | Christian Johnson, CMSPI
59 The Future of Tap-to-Pay Payments and Their Benefits | Interview with Stephane Pilloy, myPOS
61 Crypto Payments
62 Should Merchants Accept Crypto Payments? Looking Towards 2024 – Pros and Cons | Tracy Kobeda Brown, MRC

65 Latest Updates in Payment Habits

66 Super Apps and Social Commerce – A New Global Way of Doing Business | Ryan McQueen, Accenture
68 The Culture of Influencers and How They Shape the Future of Digital Payments | Interview with Irene Skrynova, Unlimit
70 The Evolving Role of Payments in the Gig Economy | Interview with Laura Miller, Nuvei
72 Digital Payments for Greater Economic Fairness | Mina Mitkova, Finance Incorporated Limited
74 Thriving in the Evolving Payment Landscape and Pioneering Seamless Transactions | Interview with Teresa Schlichting
and Bandan Jot Singh, Riverty
76 Driving Forward Digital Payments in Canada | Stephen Yun, Payments Canada

78 Innovation in Payments Technology

79 Innovation in Payment Technology: New Use Cases for Biometric Payments | David True, Payments Consulting Network
82 Filling in the Gaps – Building a More Compelling Payments Proposition for SaaS Players in Europe | Chris Jones, PSE
Consulting

84 Checkout Optimisation and Payment Integration: Improving Conversion and

Retention Rates
85 The Importance of a Customised Checkout Process | Interview with Philip McHugh, FlexCharge
87 Payment Optimisation Strategies for Better Acceptance Rates | Gabriel Lucas and Chaira Mekkaoui, Redbridge Debt
and Treasury Advisory
89 Whether You Need Orchestration or Not Depends on the ‘Music’ That You Want to Make | Masha Cilliers, Payment
Options
91 The Merchants’ Perspective on Optimising the Payments Checkout
92 Fiverr | Shany Malbin, VP Payments Strategy
93 Gameforge | Andreas Schulze, Director of Payments
94 Kiwi.com | Natália Ekl, FinTech Lead
95 OnBuy | Cas Paton, CEO
96 Vestiaire Collective | Pedro Bennasar, Head of Payments

97 Company Profiles

6 Payment Methods Report 2023 | TABLE

 OF CONTENTS 
Payment Methods in Focus and
Future Developments

• Latest trends in payment methods in 2023

• How customer expectations and experiences will change by 2030
• Choosing the right payment methods for merchants
• The fusion of in-store and online payments
• AI’s role in the ubiquity and invisibility of payments
 Juniper Research
Latest Trends in the Payment Methods Space in 2023

Nick Maynard is VP of Fintech Market Research at Juniper Research. His key area of focus is the
fintech and payments area, including embedded finance, Open Banking, and digital wallets, among
others.

Nick Maynard VP of Fintech Market Research Juniper Research

The first half of 2023 has seen continuing rapid change in the However, CBDCs, a central bank-issued digital form of a traditional

payment methods space, with the complexity of payments further currency, also have the potential to be a major force within the

increasing. Here, we will examine three of the biggest trends within cross-border payments ecosystem. While central banks’ money

payments: cross border payments and solving their challenges, the is typically only accessible by residents and businesses, this is

increasing complexity of payment methods and how merchants will changing, with cross-border payments coming increasingly in-scope

choose between them, and the continuing rise of instant payments. for CBDC pilots. This means that overall, CBDCs could be joined

together in a system that can transact faster and cheaply across

New approaches to improving cross-border borders, but this will require schemes to be merged together. Thus,

payments cross-border networks such as SWIFT will be critical to achieving

Historically, cross-border payments have not only been slow and improvements in this hotly contested area of the market.

costly, but there has also been a considerable lack of process

transparency, with money flowing through many different parties. The challenge for both approaches is not creating a system that

These challenges are beginning to be addressed by two key works – but scaling up a system across geographies and verticals.

technologies we will see progress over the coming months – CBDCs Whatever approach is taken, government support will be critical,

(Central Bank Digital Currencies) and stablecoins. meaning that CBDCs do have an advantage compared to other

payment types vying for success in this market.

Stablecoins, a type of cryptocurrency with its value linked to fiat

currency, have been a major way parties have been addressing cross- Choosing the right payment methods for merchants
border payments, improving both costs and speed, by bypassing The past few years have seen a rapid rise in the number of payment

traditional cross-border networks. Stablecoins started to be adopted types available in any given market. Whether it is a new digital wallet

for cross-border use cases, but this will take some time to feed service, a BNPL (Buy Now, Pay Later) service, or an Open Banking

through to the wider network. The mixed adoption of stablecoins payment option, these methods are multiplying quickly. As such,

means that it will take some time for a network sufficiently advanced this presents merchants with a new debate – which to accept? ➔

to solve the challenges in the space to emerge.

If successfully implemented, stablecoins can be greatly beneficial to

merchants, as they no longer need to wait for an extended period

for cross-border payments to be settled. With lower processing time

and reduced reliance on intermediaries, the cost associated with

foreign exchange payments is significantly cut down.

8 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 How a merchant decides its acceptance strategy is of vital importance. Regulators are also playing a key role in the growth of instant

Depending on the method, the costs to accept a payment can be payments. The prime example of this is the EU’s promotion of its

much higher or lower than existing methods, with certain approaches SEPA (Single Euro Payment Area) system. In October 2022, the EU

having less associated fraud risk, or typically generating a higher published a legislative proposal requiring all PSPs (payment service

AOV (Average Order Value). As such, merchants increasingly will providers) to make cross border instant euro payments available

decide along two criteria: what is popular for their users, and what to their customers. FedNow is also expected to roll out in the US,

reduces their costs. What is popular for their users is distinct from with the initial launch phase set to July 2023. Legislation such as

what is popular for the general population, meaning merchants these examples means that instant payments will continue to gain

must conduct thorough user research. Choosing to offer lower-cost ground, but this regulation-driven nature will perpetuate the uneven

payment types, such as Open Banking initiated instant payments, roll-out of instant payments.

can substantially lower costs to merchants, as well as potentially

reduce the risk of fraud. Ultimately, these changes mean that the payments market continues

to change, and all the key stakeholders in it must change with them.

Getting this balance right will be important for merchants, and as The payments mix in each country is changing rapidly, as new

with anything, it requires knowing their customer bases, with the methods displace legacy payment types. As such, staying on top of

potential rewards for the optimal strategy being significant. changes and continuously evolving acceptance strategies is central

to gaining an advantage in this rapidly changing area.

Instant payments continue to rise

Instant payments, also known as real-time payments, continue

to rise. Here at Juniper Research, we forecast that the number of

instant payment transactions globally will exceed 376 billion globally

by 2027, increasing from 97 billion in 2022, a 289% growth.

The reasons for this growth are numerous. Many central banks can

offer lower fees than a commercial instant payment rail, as they do

not need to turn a profit from their operation. This can be seen with

instant payment systems such as Pix, in Brazil, where there are

no transaction fees for individuals. This makes instant payments

extremely accessible, and once an individual is using a service,

they are less likely to change the service they use.

Juniper Research specialises in providing best-in-class market research across

mobile, online, and disruptive technologies. We offer in-depth reports, forecasts, annual
subscriptions, and consultancy. Our global clients include banks, payment providers, and
many others. To find out how we can help you, contact [email protected] or
visit www.juniperresearch.com.
juniperresearch.com

9 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 Payments Consulting Network
Merchant Payments: How Customer Expectations and Experiences Will Change
by 2030

Adam brings over 18 years of experience in product and technology, specialising in payments
and fintech. He’s held senior roles in London and Sydney, including global exposure at a Big Four
consultancy. In Australia, Adam’s extensive experience includes building and launching payment
products for fintechs and large financial institutions.

Adam Caines Associate, Sydney Payments Consulting Network

Imagine a world where you are out with friends and you ask: of a checkout-less experience, which became a reality only recently,

‘Where did you get that t-shirt from?’ It’s a vintage tee that they almost 20 years after the concept was initially presented.

found at a boutique store while on holiday in London. But you are

in Sydney, Australia. Traditionally, in-store and online payments were treated as distinct

entities, each with its own set of processes and technologies.

Your augmented glasses have already scanned the t-shirt as they However, the boundary separating these two worlds has now become

heard you were asking your friend where they got it from. The glasses increasingly blurred. Shoppers expect the same level of convenience

have already found that the boutique has an ecommerce store and, whether they are in a brick-and-mortar store or browsing a website.

within ten seconds, you are presented with an option to order one

and have it delivered within the next seven days. You didn’t have to By 2030, the distinction between in-store and online payments will

enter a single piece of information, not even your shirt size. have all but disappeared, becoming seamless. Retailers are adopting

unified payment platforms that allow customers to seamlessly transition

In the ever-evolving landscape of commerce, the way customers from shopping in a physical store to completing their purchase online,

make payments has seen dramatic transformations in recent years. and vice versa. Even today, shoppers can start their purchases on

The convergence of in-store and online payments, the rise of their smartphones, seamlessly continuing in-store, and completing

tap-on-phone and devices, social media payments, real-time the transaction from the comfort of their homes.

transactions, and the insatiable consumer demand for instant

gratification are reshaping the payment industry. Moreover, with the introduction of augmented reality (AR) and virtual

reality (VR) technologies, customers have the ability to virtually try

As we look forward to 2030, what are the key themes that are set on products, significantly enhancing their shopping experience.

to revolutionise the customer experience? Payment integration within these immersive environments will be

essential to provide a frictionless path from exploration to purchase.

The seamless fusion of in-store and online payments

Back in 2005, Amazon presented what seemed to be a revolutionary The death of terminals?
and futuristic concept. As an IBM graduate, I remember watching The rise of contactless payments, exemplified by tap-to-pay

a video that showed a customer picking up groceries and putting technology, has been one of the most notable developments in recent

them in their coat at a supermarket. At first, anyone would think they years. By 2030, this trend will have reached its zenith, with tap-on-

were shoplifting but then, as he walked out the store, a payment phone and wearable devices becoming the de facto standard for

notification was shown on a smart watch. That was the first indication payments. ➔

10 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 We already live in a world where smartphones and smartwatches a discount coupon for your favourite restaurant immediately after

serve as wallets. With a simple tap, one can make payments making a purchase at a nearby store. Real-time payments will not only

securely and effortlessly. This level of convenience is not only satisfy the need for immediacy but also unlock hyper-personalised

appealing to consumers – it also streamlines the checkout process marketing opportunities.

for merchants, reducing wait times, and enhancing overall customer

satisfaction. AI’s role in ubiquity and invisibility of payments

At the heart of these transformative changes lies artificial intelligence

The ubiquity of tap-on-phone and devices will extend beyond (AI). AI will play a pivotal role in making payments ubiquitous and

traditional retail – and, as a result, the need for physical cash will virtually invisible. AI-powered algorithms will analyse consumer

diminish, marking a significant step towards a cashless society. behaviour and preferences to deliver personalised payment options

and recommendations. For example, if a customer often shops for

Where commerce meets community groceries on Sundays, the AI might suggest setting up an automatic

In the coming decade, social media platforms will evolve from mere payment for that recurring expense. This level of convenience will

communication tools into full-fledged shopping destinations. Social make payments feel almost automatic.

commerce will become the norm, and users will be able to make

purchases directly through their favourite platforms. Furthermore, AI-driven chatbots and virtual assistants will handle

payment-related queries and tasks, making customer support more

Picture this: you are scrolling through your favourite social media efficient. Whether it’s checking the status of a chargeback, refund,

app, and you stumble upon a product that catches your eye. With or updating payment information, customers will receive instant

a single click, you can view product details, read reviews, and make assistance.

a purchase, all without leaving the app. Social media payments will

be tightly integrated with user experiences, and AI algorithms will In conclusion, the landscape of merchant payments in 2030 is set

personalise product recommendations based on your interests and to be a realm of seamless integration, where in-store and online

social connections. The lines between influencers and merchants payments converge, with tap-on-phone and devices ruling the day,

will also blur. Brands will collaborate with influencers to create social media platforms evolving into bustling shopping hubs, real-

immersive, personalised, and interactive shopping experiences. time transactions meeting instant gratification, and AI furthering the

ubiquity and invisibility of payments while enhancing personalised

Real-time payments: satisfying the need for instant experiences.

gratification
In the age of instant messaging and on-demand services, consumers As technology continues to advance and consumer expectations

have grown accustomed to getting what they want, when they evolve, the payment industry must pivot to align with the needs of

want it. This everything right now mentality extends to payments, the modern shopper. Embracing these changes will not only benefit

as real-time payments are becoming the new standard, driven by businesses but also create a more convenient and enjoyable shopping

faster payment networks and blockchain technology. experience for customers globally.

Moreover, merchants will leverage real-time payment data to provide The hardest thing for payments will be keeping up.

personalised offers and rewards in the moment. Imagine receiving

Payments Consulting Network provides advisory and market research services to the
financial services and payments sectors and has presence in Asia-Pacific, North America,
Europe, Africa, and Latin America. The firm also supports organisations in the retail,
hospitality, tourism, and not-for-profit sectors lower the cost of payments acceptance and
optimise the customer experience.
paymentsconsulting.com

11 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
Buy Now, Pay Later

• Short-term lending solutions: BNPL in B2B

• Emerging applications and latest regulatory developments
• The challenges of BNPL in a ‘polycrisis context’
• Regulation – moderating BNPL growth and fostering market consolidation
• Global overview of B2C and B2B BNPL providers
 Edgar, Dunn & Company
The Consumerisation of Short-Term Lending Solutions: BNPL in B2B

Louis is a Senior Consultant at the Edgar, Dunn & Company Paris office. He has joined the firm
in March 2021 and has graduated with an MBA from ESCP Business School in 2020. Prior to
joining EDC, Louis has combined seven years of experience in the banking and aviation industries.
Louis enjoys witnessing the modernisation of payments and payment-related processes in B2B
ecosystems that drive the ongoing change of the financial institutions’ landscape.

Louis Wapler Senior Consultant Edgar, Dunn & Company

Edgar Dunn & Company (EDC) believes the potential of Business-to- for businesses to have a higher percentage of first-time clients in

Business (B2B) Buy Now, Pay Later (BNPL) will go beyond the B2B their portfolio. The internet has simplified the previously intricate and

ecommerce ecosystems. B2B BNPL solutions can integrate with time-consuming sourcing and due diligence processes. Clients now

Accounts Receivable (AR) solutions to facilitate payment notifications have access to a wealth of information that enables them to discover

that include the option of utilising BNPL. This could be an easy win BNPL propositions – and B2B digital platforms, such as online market­

for B2B BNPL to increase market reach. Such initiatives can be places, are becoming increasingly prevalent for businesses to trade

embedded in procurement or supply chain systems. There is a plethora and gain access to credit.

of opportunities for B2B BNPL providers to investigate and untap new

segments. Trade credit but not as we know it

Trade credit is a free short-term lending solution. It is a business

EDC forecasts global transactions between corporates to reach agreement where a seller allows a buyer to defer the payment

USD 113 trillion in 2023. The World Trade Organisation estimates for the goods or services purchased. Trade credit timeframes are

that up to 80% of global trade between organisations relies on often not enough for buyers, as maintaining positive cash levels is

trade credit. The Net Present Value of trade credit is huge, and this para­mount for many businesses. This is where short-term lending

is where the B2B BNPL opportunity exists. often plays a vital role. Corporate payment cards, business credit

lines, commercial credit, secured loans, and factoring are the usual

Who is seizing the opportunity? trade credit instruments that allow organisations to hold on to their

Today, B2B BNPL fintech companies such as Hokodo, Billie, Mondu, cash while paying their suppliers. Today, the new entrant that is

Scalapay, or Playter are growing fast and are market leaders in the propagating from the B2C space into the B2B space is BNPL. Yet, it

European ecosystem. Germany-based Billie raised USD 100 million is nothing more than another form of trade credit.

in a series C in late 2021, Mondu has a cumulative financing of

just below USD 90 million in 2023, and Hokodo enjoyed a series B B2B BNPL is not a game-changing lending solution. It is simply an

extension from Citi in April 2023 leading to more than USD 55 million alternative approach – that is more convenient and more accessible –

of cumulated funding. Investments are pouring in – and at EDC, we for businesses to spread the cost of their purchases over a period,

still consider this market as a blue ocean, relatively untapped and at no extra cost. The revenue model and ability of B2B BNPL to

characterised by little to no competition. seamlessly integrate with a variety of online business ecosystems

is something that no other short-term lending option can provide

Why is B2B BNPL well suited for the B2B ecommerce to the market today. ➔

space?
Buyers can now connect to new suppliers with one click. The digital

transformation of the B2B sector has led to an increased likelihood

13 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 Can B2B BNPL differentiate from other short-term lending options? The future of B2B BNPL holds great potential
It has the capability to provide instant credit access to buyers at the The B2B BNPL opportunity is huge. While the average basket value

online point of transaction – while traditional supply chain finance in B2B is significantly higher than in B2C, business-focused BNPL

solutions are often manual, complicated to set up, and not suited for is expected to be less regulated than B2C BNPL, and organisations

online business ecosystems. B2B BNPL providers can integrate and are less likely to overspend on impulse buying than consumers.

embed themselves into the B2B value chain through a dedicated B2B BNPL is available to B2B businesses of all sizes and a wide

Application Programming Interface (API), and they can claim to variety of verticals, including manufacturing, IT, insurance, healthcare,

conduct that integration within a week or two. pharmaceuticals, travel, transportation, logistics, real estate, and

construction.

Figure 1: Illustration of the B2B BNPL providers offering a

B2C-like experience Large corporates have historically had easier access to financing

than SMEs. SMEs have long struggled to receive financing from their

traditional banks or short-term lending solution providers. A European

study identified in 2019 the SME financing gap in the Eurozone to

be EUR 400 billion, and this gap is considered even wider in North

America. SMEs are the ideal candidates, and B2B BNPL is expected

to address their requirements.

This is only the start of the diverse and continuously evolving B2B

BNPL market, and there is great potential for B2B BNPL providers

in the future.

What is the B2B BNPL operating model?

The B2B BNPL operating model works the same as B2C BNPL.

Businesses looking for short-term access to funds will not bear the

cost of borrowing. This differentiates BNPL solutions from other

short-term credit loans in the B2B space, as they allow sellers to

grant trade credit with minimum risk and without conducting an

onerous due diligence process.

The credit assessment is the greater portion of the work of B2B

BNPL providers. EDC estimates 35% of B2B BNPL resources to

be allocated to that task alone.

Edgar, Dunn & Company (EDC) is an independent global payment and fintech consultancy.
The company is widely regarded as a trusted adviser, providing a full range of strategy
consulting services, expertise, and market insights. EDC expertise includes M&A due
diligence, legal and regulatory support across the payment ecosystem, fintech, mobile
payments, digitalisation of retail and corporate payments, and financial services.
edgardunn.com

14 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 Euromonitor
BNPL: Exploring Emerging Applications and Regulatory Developments

Frida is a Consultant at Euromonitor International with a focus on consumer finance. Based in London,
Frida conducts and commissions research for consumer payments and lending in Western Europe.
She produces analyses on payment and financial service trends and advises clients across a range of
industries.

Frida Polyak Consultant Euromonitor International

Buy Now, Pay Later (BNPL), the modern-day credit, quickly reached Beyond consumer use, BNPL is gaining traction in the B2B environ­

even the smallest segments of retail and the services industries over ment. Financial institutions recognise the potential of BNPL in the

the past years. Today, the payment alternative is commonly used to segment and are stepping forward to offer instalment payment

cover daily necessities. While there is no BNPL regulation in place options to businesses. For example, in early 2023, Santander

to date, imminent regulatory frameworks will most likely accelerate launched a BNPL platform for multinational corporates, which

market consolidation and a slowdown in development. However, claims to be the first of such global platforms. As BNPL has the

the impact is expected to be proportional to the extent of regulation. potential to reshape commercial payments, we are likely to see

more initiatives and product developments, like Santander’s.

Availability on purchases from daily essentials to

B2B payments Delay in regulation amid increasing cost-of-living –
After gaining significant traction during the global pandemic, BNPL opportunity or threat?
continues to maintain its momentum as one of the leading trends in As consumer purchasing power declines and BNPL is more often

the realm of popular payment methods. According to Euromonitor used to cover the cost of daily necessities, concerns around debt

International data, the BNPL market grew by 9% year-on-year accumulation are rising. The need to regulate short-term loans is

in 2022, reaching USD 156 billion across 47 researched markets. becoming more pronounced than ever before.

Traditionally, the payment alternative has focused on the retail

segment – and, in particular, the financing of big-ticket items.

In recent years, an increasing number of retailers adopted BNPL

as a payment option, and, today, consumers can apply instalment

payments even on everyday purchases, such as groceries.

Instalment payment options help many to cover daily necessities Source: Euromonitor Voice of the Consumer: Lifestyle Survey,

amid increasing cost-of-living, inflation, and rising interest rates. fielded January to February 2023

Moreover, BNPL has reached segments beyond retail and became

prominent in service industries as well. Use cases include deferred To date, BNPL remains unregulated in most markets. The UK Treasury

or instalment payment options in the hospitality sector, as well was among the first agencies worldwide to announce their intention

as covering medical expenses. For instance, UK consumers to regulate the BNPL market, putting forth their plans in 2021.

increasingly turn to BNPL financing to access private medical care However, over two years have passed, and no regulation has been

without the immediate financial strain of medical bills. introduced by the Financial Conduct Agency (FCA). ➔

15 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 It is argued that regulatory delay can be directly linked to the Italy, and Spain to prioritise its most profitable markets. Focusing

inflationary environment, and it is a result of the cost-of-living crisis on key geographies allows providers to become more robust and

in the UK. Payment plans give consumers access to products and well-established, competing more efficiently in an overcrowded

services that otherwise would be beyond their means in the current landscape.

economic environment. On the other hand, however, the heavy

reliance on BNPL to pay for food, bills, and everyday essentials Another important consideration for BNPL providers is the need

risks creating a financial hole in which a large share of income goes to comply with regulatory frameworks as early as possible.

towards past purchases. To avoid such an undesirable situation, In 2022, Klarna began voluntarily reporting to UK credit agencies.

most governments intend to regulate credit alternatives. This reporting helps increase consumer trust, and it also prepares

pure BNPL providers to adapt to regulation swiftly. Moreover, it

Therefore, BNPL regulation in the UK market is still considered to be can empower fintechs to compete with greater efficiency against

imminent, with regulatory frameworks expected to be introduced by mainstream financial institutions, who traditionally have more

the European Union soon too. Furthermore, in Australia, one of the experience with compliance than their fintech counterparts.

world’s most developed BNPL markets, the government recently

announced their intention to regulate and treat BNPL as credit. BNPL to face challenges in the future
Thus, regulatory measures are anticipated to begin unfolding on a Following the rapid expansion of BNPL payments, imminent

global scale over the next year or so. regulation is anticipated to set back consumer BNPL use. In the

near future, the market will face continued challenges, such as

Regulation to moderate BNPL growth and foster ongoing interest rate hikes, margin pressures, and difficulty finding

market consolidation creditworthy individuals. On the long term, while BNPL is here

But how will regulation impact the landscape? While a slowdown to stay, credit assessment will inevitably become an important

in growth is anticipated, its magnitude depends on the level of component of the BNPL landscape, reshaping the market by

regulation. Potential regulatory scenarios include underregulating tightening access to the payment alternative.

the provision of BNPL, which holds the risk of unqualified consumers

accessing too much credit. Conversely, overregulation might reduce

the availability and attractiveness of BNPL for certain consumer

groups. In this latter scenario, the cost of providing instalment

payments is also expected to rise, which might be passed on to

prices consumers pay for BNPL services.

As for the competitive landscape, the market has reached the

consolidation phase, which is likely to be furthered by regulatory

advancements. Players are recalibrating their strategies, with a

heightened focus on their core markets. A recent development

of the BNPL landscape is Clearpay ceasing operations in France,

Euromonitor International is the world’s leading provider for global business intelligence,
market analysis, and consumer insights. Our research solutions support decisions on how,
where, and when to grow your business. With offices around the world, analysts in over
100 countries, the latest data science techniques and market research on every key trend
and driver, we help you make sense of global markets.
euromonitor.com

16 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 Hokodo
Buy Now, Pay Later: the Real Value Is in B2B Payments

Louis is the co-founder and co-CEO of B2B Buy Now, Pay Later provider of Hokodo, where he
leads the commercial and product functions. Previously, Louis was the head and founder of the Digital
Agency at Euler Hermes, and he started his career at Oliver Wyman.

Louis Carbonnier Co-founder and co-CEO Hokodo

With a global total payment volume (TPV) of USD 309.2 billion, Buy Facing economic uncertainty and severe cashflow challenges,

Now, Pay Later (BNPL) is going through something of a golden age. businesses sought flexible payment options to help keep their

The number of BNPL users worldwide is estimated to double to heads above water. B2B BNPL solutions empowered them to buy

a total of 900 million by 2027, while the size of the global industry the stock or materials they needed – and pay for them once they

is predicted to reach USD 3.7 trillion in 2030. had started to make profits. This was particularly beneficial for

businesses that experienced revenue fluctuations, enabling them

However, recent stock market declines and difficulty for BNPL firms to manage expenses while maintaining financial stability.

to become profitable are generating questions over the viability of

this business model. With the addition of heightened regulatory ‘What about the sellers?!’ you may say. Don’t worry, B2B BNPL also

oversight, you have all the ingredients for a reshuffling in the world helps the sellers. While buyers are permitted longer, more flexible

of BNPL. credit terms, merchants offering ‘Pay Later’ products benefit from

full, upfront payment. Unsurprisingly, accelerated adoption of B2B

The future of BNPL lies in the B2B trade. B2B and B2C are distinct BNPL during the pandemic has led to increased competition in

sectors with very different purchasing behaviours and market dynamics. the market. Traditional financial institutions and specialist fintech

As an opportunity, deferred online payments for businesses are virtually companies alike have recognised the potential of B2B BNPL and

untapped, but consumer BNPL has become a highly saturated market, entered the space, offering a variety of solutions to businesses.

with end buyers bombarded by offerings from a mass of homogeneous The result? Innovation, improved offerings, and increased options

providers. for buyers and sellers.

Let’s not also forget that the B2B market is more than three times Spurred by the pandemic, B2B trade is moving online. However, a

the size of the B2C sector – and growing twice as fast. All things 2020 survey by McKinsey revealed that 96% of European B2B

considered, the B2B sector is ripe for payment innovation. buyers would make a purchase in an end-to-end, digital self-serve

model. The report also found that 73% of B2B buyers are millennials

The impact of COVID-19 on B2B BNPL who prefer buying online. The fact is that B2B buyers and sellers

Causing supply chain disruption, delayed payments, and financial have had a taste of how safe, simple, and supported their trans­

strain on countless businesses, the pandemic highlighted just how actions can be, so why would they give that up? ➔

important flexible payment options were for B2B. When available,

the choice to defer or split a payment provided business buyers

with much-needed financial flexibility and helped them navigate the

unprecedented impact of the COVID-19 pandemic.

17 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 The key growth drivers for BNPL in B2B Buy Now, Pay Later: the future of B2B payments
Let’s explore a few of the drivers that are helping providers like More than half of B2B transactions traditionally take place on pay­

Hokodo create value for B2B businesses and fuel the growing ment terms. However, traditional methods of offering credit don’t

adoption of BNPL services. translate well to an online setting. Globally, over USD 30 trillion of

B2B sales rely on trade credit, but the tools to facilitate this have

Competitive advantage and differentiation scarcely changed in two centuries.

With more trade taking place on digital platforms, sellers are looking

for ways to beat the competition. By providing payment options Credit terms are not an optional service in B2B – they are a necessity,

that their competitors lack, they can attract customers, win new and particularly so during periods of economic downturn. But there

business, and secure long-term partnerships. Offering the desired are still very few reliable solutions available for online B2B sales. It is

combination of payment terms and settlement methods is proven reported that 75% of B2B marketplaces offer payment through their

to improve conversions and retention in B2B. Internal research platforms and, of those that do, only one in five offer a BNPL option.

from Hokodo shows a 40% increase in conversions and 24% uplift

in purchase frequency among merchants that have implemented As we step into a new age for B2B, a fundamental shift is required

our solutions. in how transactions are settled. With one foot in the future and

one in the past, merchants have sophisticated digital platforms

Technological advancement and ecommerce adoption but struggle with complex, offline payment solutions like letters of

As buyers and sellers embrace digital platforms and online credit or factoring and credit insurance. This makes managing trade

purchasing, they are looking for payment options that align with credit accounts extraordinarily painful and sometimes impossible.

their digital strategies. Buyers want fast approval for credit without

filling in forms, while sellers want to minimise the time spent on Bringing the end-to-end trade credit management process into

credit checks while staying protected from risk. B2B BNPL enables one solution, B2B BNPL solves this issue. Sellers can forget the

businesses to transition smoothly into the digital landscape and operational burden of offering credit and focus on their growth goals,

capitalise on the opportunities of ecommerce. while buyers get the payment terms they need to grow and thrive.

Renewed focus on customer-centricity

Gone are the days when business buyers would accept a subpar

experience on a sketchy ordering site. Business buyers are con­

sumers too, and they expect an experience that reflects what they

are used to in their personal lives. They will not stand for poor

UX and clunky payments. To cater to these demands, sellers are

placing greater emphasis on personalisation, convenience, and

responsiveness. With buyer needs at the forefront, B2B sellers are

creating digital platforms that inspire trust and make procurement

as seamless as possible.

Click here for the company profile

Hokodo provides B2B Buy Now, Pay Later solutions that enable merchants and
marketplaces to offer payment terms to customers.

hokodo.co

18 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 Ratepay
Nina Pütz, CEO at Ratepay, discusses the story of the company and the preferences of German consumers for BNPL services.

Nina Pütz is the CEO of Ratepay. With more than 17 years of experience in ecommerce, Nina
was most recently CEO of the online shopping club brands4friends and spent 15 years in various
leadership roles at the online marketplace eBay. She is also involved in the advisory board of the textile
trading company L&T and a member of the supervisory board at international rescue committee (IRC)
Germany.

Nina Pütz CEO Ratepay

Can you tell us a little bit more about Ratepay and As the online payment landscape evolved with the emergence of

its journey into becoming one of the most prominent Buy Now, Pay Later (BNPL) as a popular payment method and

BNPL solution providers? the entry of international competitors into the market, Ratepay

Ratepay’s journey began in 2009, during a time when terms like continued to thrive. Today, Ratepay is an integral part of the Italian

invoice payments were relatively new and unexplored in ecommerce. payment provider Nexi – and boasts a diverse clientele, including

The concept of providing downstream payment solutions for online prominent names like PayPal, IKEA, and Fashionette. Furthermore,

stores was born when Miriam Wohlfarth, the founder of Ratepay, the company has benefited significantly from the surge in online

identified a pressing need for such solutions among her merchant shopping driven by the COVID-19 crisis and the growing popularity

clients. Thus, she started Ratepay, and soon partnered with Otto of BNPL.

for the financial support needed to grow the business.

While forthcoming regulations are expected to introduce more stringent

controls in the BNPL sector, Ratepay, as a German-regulated entity,

Efficiency, security, and speed has already established the necessary infrastructure to comply with the

new standards and capitalise on the ongoing BNPL trend.

are considered cornerstones that
online payment methods must How does Ratepay differentiate from other BNPL
fulfil to cater to the preferences of providers and how does its white-label solution help
both partnering merchants and end-consumers?
German consumers.
Ratepay stands as Europe’s premier white-label payment provider,

overseeing all aspects, from payment processing to customer

service, and risk management behind the scenes. Our primary

Ratepay grew into success primarily because of two important objective is to support the growth of our clients, with Ratepay

factors: first, its white-label integration, and second, a top-notch benefiting as their revenue increases.

risk management system. The white-label invoice option was

especially popular with the careful German shoppers who love using Our flexible features and modular system allow us to tailor our

familiar terms like Rechnungskauf (invoice payment) instead of new, offerings to meet the unique requirements and business models of

unfamiliar brands. The payment guarantee that Ratepay offers to each individual merchant. Through our one-partner concept, retailers

merchants creates the necessary trust among merchants to work maintain complete oversight and control, handling tasks such as

with the company. contract signing, onboarding, and payouts in their established

merchant relationships. ➔

19 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 Moreover, the white-label solution has emerged as a significant into forced debt are on the rise. Many industry experts argue that

driver in building customer loyalty. Online retailers offering this EU regulations primarily favour banks.

payment option are greatly preferred by customers, especially when

employing white-label solutions. Throughout the checkout process, However, we remain reluctant that anything will change in terms of

customers stay within the online store’s branded ecosystem, the use and general popularity of BNPL options. The real challenge

creating a direct association between financial security and the lies with international players such as Klarna, Revolut, and Apple,

brand. All transactions take place seamlessly within the merchant’s who have not been subject to regulations thus far. Adapting to the

platform, devoid of third-party involvement or redirection to external new regulations will pose a formidable challenge for them. As a

websites, delivering a seamless and dependable shopping German-based player, Ratepay has a clear competitive advantage

experience to customers. in this regard.

What are the payment preferences for the German It is important to note that the directive has been enacted at the EU

market and, more specifically, the preferences level and must now be incorporated into national law. How exactly

regarding BNPL products? the directive will be translated into national law and, above all, by

Efficiency, security, and speed are considered cornerstones that online when is something we cannot yet say.

payment methods must fulfil to cater to the preferences of German

consumers, and BNPL payment methods hit the mark perfectly. Finally, how do you see the development of Ratepay
While e-wallets lead the pack with a commanding 45% usage rate, in the upcoming years? What’s new in store for the
the BNPL services, particularly Invoice Payment, come in second company?
place at an impressive 38%, followed closely by direct debit, with The BNPL market boasted a substantial size of around USD 120 billion

a usage share of 27%. Instalment payments exhibit a somewhat in 2021 and represented 1% of global point-of-sale (POS) payments

more modest adoption rate, comprising 8%. during that year. Notably, Sweden and Germany emerged as front­

runners in BNPL adoption. In 2022, BNPL services were embraced

Additionally, it is worth noting that PayPal enjoys a prominent presence by a staggering 360 million individuals worldwide. Given the

in the German online payment landscape, commanding a usage rate immense scale of this market, we are committed to maintaining our

of nearly 29.6%, while credit card payments account for 12.1% of leadership position, particularly in the DACH region.

the market. These figures underscore the diverse range of payment

methods preferred by German consumers. To achieve this goal, we underwent significant transformations over the

last few years, implementing process enhancements and bolstering

How do you see the future of BNPL in the country in our team with a wealth of international and highly experienced talent.

terms of regulations? Will BNPL continue to remain

a preferred payment method for consumers?
Tightening credit checks is a prudent move, particularly in the current

economic climate where inflation and the risk of individuals falling

Click here for the company profile

Ratepay operates in financial services as a direct provider of white-labelled Buy Now,

Pay Later (BNPL) products in Germany, Austria, Switzerland, and the Netherlands.
The company enables large online retailers (merchants and marketplaces such as eBay, IKEA,
Eurowings, Flyeralarm, or About You) to offer end-customers (buyers) the possibility to pay
for products or services via open invoice, direct debit, or in instalments. Being natively
integrated at checkout, Ratepay is invisible to the buyers and does not dilute the merchant’s

ratepay.com/en/ brand and trustworthiness.

20 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 Tinka
The Importance of Regulating the Buy Now, Pay Later Sector: Tinka’s Perspective

Throughout his career, Charly has founded, built, worked for, or sold several businesses around
the world. He is a strategist, people leader, proper technology and data nerd, and a networker at
heart. He joined the Netherland’s largest department store, an APAX Partners private equity portfolio
company, as Group CTO, in April 2016. Four years later, Charly took on the position of CEO of Tinka,
the consumer finance business within the group, and carved it out successfully with the Tinka team.

Karlheinz ‘Charly’ Toni CEO Tinka

Taking the lead in responsible lending: the necessity emphasising the necessity of regulation and the risks associated with

of regulating the BNPL sector the digitalisation and exponential growth of the BNPL market.

The Buy Now, Pay Later (BNPL) industry in the Netherlands has

experienced a remarkable 30% year-on-year growth in 2022, Examining regulated markets provides insights into the positive

indicating a surge in consumer adoption of this payment method. impact of proper oversight in the BNPL sector. For instance, in

While BNPL offers convenience and flexibility, it is essential to Australia, BNPL providers are required to hold an Australian Credit

recognise the risks associated with this rapidly expanding sector. Licence, ensuring responsible lending practices and consumer

Tinka, a responsible BNPL provider in the Netherlands, understands protection standards. Sweden has introduced guidelines for BNPL

the need for regulation to safeguard customers and actively engages providers, including credit assessments and affordability checks.

in lobbying efforts to ensure proper oversight. Similarly, Germany has brought BNPL services under the oversight

of the Federal Financial Supervisory Authority (BaFin) through the

The BNPL market is projected to experience significant growth, German Payment Services Supervision Act (ZAG). These regulatory

with estimates indicating a compound annual growth rate (CAGR) frameworks prioritise transparency, responsible lending, and consumer

of 22.4% from 2022 to 2027, reaching EUR 6.8 billion. This growth protection, creating a safer borrowing environment for consumers.

underscores the need for regulatory measures to protect consumers’

financial well-being. Drawing insights from regulated markets, we can observe the positive

impact of oversight on consumer protection and responsible practices.

While BNPL offers convenience and financial flexibility, it also poses As the Buy Now, Pay Later sector continues to experience exponential

potential risks. Unregulated BNPL providers may impose exorbitant growth, it is vital to establish regulatory frameworks to protect

late fees, hidden charges, and other practices that can lead to consumers. ➔

financial strain for customers. Furthermore, the ease of overspending

without adequate oversight may contribute to excessive debt burdens.

Tinka prioritises customers’ well-being and, by offering products

tailored to individual financial situations and ensuring transparent

communication of interest rates and fee structures, we empower

customers to make informed decisions. Tinka implements stringent

fraud prevention measures to safeguard its customers. Recognising

that individual company efforts are not enough, we actively participate

in lobbying activities to advocate for the regulation of the BNPL sector,

21 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 Reputational risk
There is another compelling reason that can be seen as a call-to-

action for regulation: reputational risk for merchants. More merchants

look at the impact on their brand reputation while offering deferred

payment options. They are no longer accepting that their brand

is associated with a third party that is jeopardising the (financial)

well-being of their customers by imposing late pay fees and other

collection costs. Moreover, they become more aware of the fact that

these third parties have a negative impact on their NPS, resulting in

less loyal customers.

By committing to responsible and transparent BNPL services, Tinka

invites anyone to join the challenging journey to bring necessary

control over unregulated products and create a better financial

future for everyone.

Unleashing the power of responsible in-store This innovation benefits retailers as well by boosting sales and

deferred payments for businesses and consumers conversion rates. Customers are more likely to make larger purchases,

The retail sector is continually evolving to meet consumers’ needs, opening new opportunities for upselling and cross-selling. Moreover,

and one emerging trend is in-store deferred payments. This new offering this flexible payment method can increase customer satis­

in-store payment method has caught the attention of retailers and faction, leading to greater loyalty and repeat purchases.

customers due to the many benefits it offers.

Tinka is at the forefront of this in-store solution. Through our

In-store deferred payments allow customers to take home their partner­ship with Rivièra Maison and Amslod, customers can use

purchases directly, without paying immediately. Instead of paying their physical or digital Tinka cards to purchase products in-store

the full amount upfront, consumers can choose to split their payments and pay for them within 36 months with 0% or 13.9% interest

in instalments. This flexible payment option provides customers (depending on the campaign). The Tinka card is available for free

with the freedom to make purchasing decisions without immediate in-store and the Tinka app, and activating it takes under 90 seconds.

financial pressure, thereby lowering the barrier to purchase.

Our company understands the needs and expectations of both

retailers and customers and is, therefore, well positioned for the future

of in-store retrospective payments. We will continue to build on this

proposition and are ready for a successful future in the retail sector.

Click here for the company profile

Tinka is a deferred payments service provider based in the Netherlands, registered and
authorised by the Netherlands Authority for Financial Markets (AFM). With more than 60 years
of experience, we offer responsible deferred payment solutions. These solutions include
invoiced Buy Now, Pay Later and different consumer credit options – online and in store.
tinka.nl

22 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 Partelya Consulting
The Challenges of BNPL in a ‘Polycrisis Context’

Expert in payments and financial services, Andréa Toucinho is the Director of Studies, Prospective
and Training of Partelya Consulting and Country Ambassador for France of the European Women
Payments Network (EWPN). She published several editorials about payments as the representative of
two national fintech associations – AEFI Spain and AFIP Portugal.

Andréa Toucinho Director of Studies, Prospective and Training Partelya Consulting

Launched in the 2010s thanks to the development of ecommerce, payment option. Thus, France is not the only country in Europe

the concept of Buy Now, Pay Later (BNPL) is about to enter a new that is adopting this trend. According to the second edition of the

chapter in the European payments ecosystem. Famous for its FLOA – Kantar report on payments in Europe that was published

opportunities in the context of an economic crisis, BNPL is also a in 2023, France, Spain, and Portugal have the highest number of

point of attention for the European and national regulators that aim users of BNPL services across Europe. Another key insight of the

to safeguard consumer protection in times of macroeconomic and report suggests that while BNPL is often regarded as an asset to

geopolitical instability. manage spending, consumers may also see it as a way of responsible

shopping – for instance in Italy and Germany.

Today, the development of BNPL is often seen as one of the main

trends in the European payments ecosystem – but it is important Despite these observations, the risks of BNPL represent a top priority

to acknowledge that this concept represents different realities for the national and European regulators. In France, for instance, an

according to the specificities of each European country. In France, important, historic step has been achieved in 2010 with the Lagarde

for instance, two main offers have been developed: a deferred Law that addresses the enhancement of consumer protection

payment of 15 or 30 days – and a purchase split in three or four measures in the field of consumer credit, with a strong purpose: the

(usually interest-free) payments over a period of approximately struggle against over-indebtedness.

90 days. Thus, if the payment is deferred or split over a period of more

than 90 days, it is no longer regarded as BNPL, and it becomes a The law states that consumers are protected against abuses,

consumer credit, according to French legislation. such as credits that are never reimbursed, and there are specific

initiatives to help people who live with over-indebtedness issues.

A popular trend in Europe Confronted with the development of digital uses, the national and

This payment method has become increasingly popular in France. European regulators aim to adapt the legislation to elevate consumer

According to the French ecommerce association FEVAD (Fédération protection. This is why, at a European level, we saw an evolution of

du e-commerce et de la vente à distance), the acceptance of BNPL consumer credit legislation to integrate these new provisions.

ranges from 80 to 90% in France, and it represents 20% of the total

of ecommerce transactions. Among the key priorities of the European regulators are the necessity

to protect consumers from dangerous products and the need to

This trend is also confirmed at a European and international level. foster information transparency and financial literacy throughout

According to the same organisation, BNPL counted for USD 90 Europe, with the aim of making the market and the consumers more

billion in 2020, and it may soar up to USD 250 billion by 2025. responsible. ➔

Similarly, 60% of Europeans have already used BNPL, and one

in four Europeans selects an ecommerce brand that offers this

23 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 Vigilance and protection of consumers
This same idea is shared by the French regulator Autorité de Contrôle

Prudentiel et de Résolution (ACPR), which published, in July 2022, a

report about the situation of BNPL in France. According to ACPR,

some key aspects of the commercialisation of BNPL need to be

addressed by the participants in this market: first, the commissions

charged, along with providing transparency about other additional

fees; then, the consumers’ information that is being stored.

According to ACPR, it is important to clearly mention the nature of the

product since many consumers are not aware of the accountability

associated with this type of service. Another key point of the report

tackles the analysis of solvability, as a simple analysis of the payment

cards is not sufficient to ensure the financial responsibility of the

consumer. Thus, it is also important to study the clients’ financial

capacity and the other credits they might have accessed.

The legal aspects and the necessity to review and sign a contract

are other significant factors contributing to increasing consumer

awareness.

This testifies to the fact that currently the BNPL market is in a

transition line between a context of opportunities – deriving from

the development of ecommerce and a strong environment of crisis

implying the necessity for consumers to have more payment facilities –

and a regulatory vigilance linked to the need of protecting consumers.

The stabilisation of the market will not happen overnight, as the

answers to some problems will probably only be available in the next

years. This is strictly linked to the evolution of the regulations and

strategies employed by the actors of this market. They will need to

define a balance between opportunities and vigilance in accordance

with the requests of the regulators.

Partelya Consulting is a French consulting company specialising in payments.

Created in 2008, it works with all actors in the market, from banks to schemes and retailers,
on technological, strategic, and regulatory issues. The company is a member of the French
Association du Paiement, and it contributes to several projects linked with payments and
innovation.
partelya.com

24 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
Global Overview of B2C and B2B
BNPL Providers
 Introduction
Buy Now, Pay Later (BNPL) emerged as one of the payment trends hotly debated within the industry throughout 2022 and into 2023. Between

the convenience offered to consumers who remain interested in alternative credit, especially in these challenging economic times, and concerns

regarding speed, financial inclusion, and responsible spending, serious considerations hinted towards the need for regulations and consumer

education. Recognising the rise of BNPL as a pivotal industry trend, policymakers began developing legislative frameworks for its operation,

with many of them set for further exploration in the second half of 2023.

After experiencing unbridled growth for several years, BNPL is shaping up to become a well-established industry with widespread adoption

worldwide, despite the hurdles that it might face due to the intense competition in this sector and the heightened regulatory landscape. In

2022, major providers like Klarna saw significant fluctuations in their valuation – however, projections indicate a CAGR of 33.3% by 2026 to

USD 596.7 billion for the BNPL market size.

While the concept of ‘buy now, pay later’ is used to encompass lending and instalment propositions for B2C and B2B ecommerce, the use cases

and product portfolios vary widely from region to region. In Southeast Asia, for instance, only 27% of the total population (of approximately

670 million) have a bank account. Therefore, it is no surprise that big techs, banks, multiservice providers, card networks, fintechs, and super

apps alike compete for the same piece of the pie, and hundreds of providers now offer instalment loans at checkout.

More to this point, Worldpay estimates that in 2022 BNPL accounted for 5% of all ecommerce transactions worldwide – and is anticipated

to continue to earn market share in the following years. One can also observe that, while a few years ago Australia and Sweden were among

the top markets in this space, now, Germany, the Netherlands, and the US are catching up – with ecommerce transaction values estimated

to reach 25%, 14%, and 7% respectively by 2026, as per Worldpay’s report. In this context, BNPL 2.0 is expected to experience sustained

growth and remain relevant to the payment mix.

Considering the size of the market, the multiple BNPL providers worldwide, the different ways in which this service is distributed, and

encouraged by the success and the overwhelming market response from previous years, in this year’s edition of the Payment Methods

Report we have set out to present a comprehensive overview of the BNPL market, divided by several categories, including regions and

business models.

In this overview you will find:

• an accurate global picture of the players in this space – mapped by country – in the following regions: the Americas, Asia–Pacific (APAC),
Europe, Middle East and Africa (MEA);

• multiple examples of BNPL providers in the B2B and B2C target groups.

We kindly invite you to check our in-depth research – and learn more about the players in the BNPL industry!

26 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 B2C BNPL
US

PROVIDERS
AMERICAS

Canada Colombia

Brazil

Mexico

Argentina

Chile

Researched by ® The Paypers, 2023

27 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 B2B BNPL
PROVIDERS US

AMERICAS

Canada

Mexico

Brazil

Researched by ® The Paypers, 2023

28 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 B2C BNPL Uzbekistan China South Korea Japan

PROVIDERS
Pakistan

APAC
Hong Kong

India

Taiwan

The Philippines

Sri Lanka

Thailand

Malaysia
Vietnam

Indonesia

Singapore

Australia

New Zealand

Researched by ® The Paypers, 2023

29 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
B2B APAC

B2B BNPL
PROVIDERS
APAC
Vietnam

Hong Kong

India

The Philippines

Indonesia
New Zealand

Australia

Researched by ® The Paypers, 2023

30 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
B2C Europe

B2C BNPL
Norway Sweden Finland

PROVIDERS
EUROPE UK
Denmark
Latvia Lithuania
Belgium

The Netherlands

Poland

Luxembourg

Germany
Czechia Austria

Romania
Switzerland

Spain France
Italy
Portugal

Researched by ® The Paypers, 2023

31 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 B2B BNPL Norway Sweden Finland

PROVIDERS
Denmark

EUROPE
UK

Poland
The Netherlands
Belgium

Czechia Austria

Luxembourg

Germany Slovakia

Hungary

Switzerland
Romania

France
Spain Italy

Portugal

Researched by ® The Paypers, 2023

32 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 B2C BNPL Egypt Israel Lebanon Jordan

PROVIDERS
Turkey Iraq

MEA Tunisia

Kuwait

Morocco

Bahrain

UAE

Oman

Ivory Coast Saudi Arabia

Ghana Uganda

Kenya
Nigeria

Rwanda

Angola South Africa

Researched by ® The Paypers, 2023

33 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 B2B BNPL Egypt

PROVIDERS
Kuwait
MEA Tunisia

Bahrain

UAE

Oman

Ghana

Nigeria
Saudi Arabia

South Africa

Researched by ® The Paypers, 2023

34 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
Account-to-Account and Instant
Payments

• The importance and benefits of real-time payments

• The SRTP scheme: business benefits and what’s next
• The adoption and benefits of A2A payments
• Challenges hindering the proliferation of A2A payments
• Global overview of account-to-account payment methods
 Discover® Global Network
We interviewed Andrea Plos, Senior Manager Payments Products, Payment Services at Discover® Global Network, about the

importance of real-time payments and their benefits for merchants across the globe.

Andrea Plos has over 30 years of experience in the banking and payment industry. He launched one
of the first Internet Banking services in Europe, developed key products in the areas of debit, credit, and
prepaid, and supported the commercial launch of Visa Direct at Visa Europe. Today, Andrea is responsible
for the Emerging Transactional Products (A2A, RTP, QR payments) and Enabling Technologies for
Discover Global Network and Diners Club International®.

Andrea Plos Senior Manager Payments Products, Payment Services Discover® Global Network

How are emerging trends like real-time payments can be easily assembled and reassembled to create new and different

transforming the payment industry landscape, and products or services – and it has been used to create innovative and

what should we pay attention to? customisable payment services.

Today, our cardholders (consumers and businesses) expect instant

gratification as they are used to instant messaging, instant delivery Why is interoperability a game-changer in the pay­
of music and videos, instant booking, and even instant payments. ment industry, and how does it impact real-time
This means that real-time is now applicable not only to payments transactions?
and money movement but to every product offered by the payment Interoperability is directly connected to another important concept,

industry. Consequently, acquirers, merchants, and the whole payment ubiquity. As said, consumers and businesses expect to pay and be

ecosystem are required to consider real-time execution/delivery and paid easily, everywhere, and in real-time. Every day, new services

make sure to implement it to boost transaction volumes and retain and products are created to support this demand from many players

their consumer base. and providers.

Interoperability refers to the ability of different payment systems

We have identified two
to work together seamlessly. This is essential for creating a more
interesting trends that we believe inclusive payments ecosystem, as it allows acquirers to offer

will shape the future of real-time merchants and cardholders the best modern technology, the most

convenient payment methods (the ones they prefer), regardless of

payments: interoperability and
their bank, card issuer, market, and so on. There is no need to rely on
the so-called Lego-ification of a single provider’s existing capability, as the main objective is to put

payments. the client at the centre and combine capabilities. Simultaneously,

that can be offered by multiple providers, in one integrated solution.

The collaboration between fintechs, networks, and others within the

For push and instant payments, we have identified two interesting payments ecosystem, supported by standardisation, is essential for

trends that we believe will shape the future of real-time payments: creating better payment products that acquirers and merchants can

interoperability and the so-called Lego-ification of payments. offer to their clients, increasing inclusivity, performance, and quality

Interoperability is becoming more crucial as it allows different payment of life, for both consumers and businesses. For instant payments,

systems to work together seamlessly, thereby creating a more inclusive this is reflected in several partnerships and cooperation initiatives

and functional payments ecosystem. Simultaneously, Lego-ification between payment schemes and providers, for example, extending

is referred to as the process of breaking down complex systems, the reach of card schemes to facilitate payments to bank accounts

products, or services into smaller, more modular components that or digital wallets. ➔

36 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 How does the concept of Lego-ification apply to How do you envision the future of real-time
payments, and what potential benefits does it offer? payments, with an emphasis on collaboration
The Lego-ification of payments is the 23rd century version of the among industry players?
Pareto Principle, also known as the 80/20 rule. As said, all the parties All the above will benefit acquirers, merchants, and their clients,

and products can work together for mutual benefit – and to benefit allowing them to offer payment services that will be easily accessible

the customer base by combining their capabilities and what they do and customisable. At the same time, users will be able to pick and

best. For instance, in payments, Lego-ification can be used to create choose components that best meet their needs. This will further

new and innovative propositions and services that meet the needs of empower merchants to benefit from tailor-made financial solutions,

today’s consumers by combining existing products with new ones: resulting in more efficient and cost-effective transactions.

• Virtual cards can be combined with biometric authentication The future will be marked by increased coopetition (cooperation

and instant salary payments: virtual cards are already a popular between competitors) and collaboration among various players in

security measure for online purchases but, by adding biometric the industry. As payment systems become more interconnected

authentication, businesses can take the security of virtual card and modular, new opportunities will emerge for fintechs, payment

payments to the next level. And, by offering the option for instant providers, and banks to work together, driving the development of

salary payments, businesses can provide employees with faster new products and services.

access to their funds.

This collaborative environment will also encourage the sharing of

• Real-time payments combined with payment orchestration and expertise, resources, and technology, fostering a spirit of innovation

Buy Now, Pay Later (BNPL) options: real-time payments allow for that benefits the entire payment ecosystem. Simultaneously, the

almost instantaneous transfers of funds, making them a convenient increased competition will drive merchants to continually improve

option for businesses and consumers alike. By using payment their offerings, ensuring that customers receive the best possible

orchestration to combine real-time payments with other payment products and services.

methods, businesses can create even more flexible payment

solutions. And, by offering BNPL options, businesses can give As payment systems become more interoperable and modular,

customers the option to finance their purchases and pay later. ensuring the security and trust of these systems will be of paramount

importance. At Discover Global Network, we believe that in the future,

• Open Banking with fintech and payment orchestration: Open advanced technologies like artificial intelligence (AI) and machine

Banking enables businesses to access financial data and initiate learning (ML) will play a crucial role in enhancing the security of

payments through APIs, while fintech brings new and innovative payment transactions and protecting users’ data, allowing merchants

payment technologies to the table. By combining these two to focus on their core business and less on frauds.

forces with payment orchestration capabilities, businesses can

streamline their payment processes and create disruptive payment

Click here for the company profile
experiences.

Discover® Global Network, the global payments brand of Discover Financial Services,
processes millions of cardholder transactions each day. With industry expertise, innovative
technology, and a closed-loop infrastructure, Discover Global Network provides effective,
customised solutions that evolve as needs change. Discover Global Network has alliances
with 25+ payment networks around the world – and is led by three Discover businesses:
Discover Network, with millions of retail and cash access locations; PULSE®, one of the
leading ATM/debit networks; and Diners Club International®, a global payments network
DiscoverGlobalNetwork.com with acceptance in over 200 countries and territories.

37 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 European Payments Council
The SRTP Scheme: Steady and Ready to Take Off in 2023!

Dominique Allebroeck is Senior Business Analyst at the European Payments Council. She
coordinates the maintenance and evolution of the SEPA Request-to-Pay (SRTP) scheme and of the
SEPA Proxy Lookup (SPL) Scheme.

Dominique Allebroeck Senior Business Analyst European Payments Council

On 30 November 2020, the European Payment Council (EPC) About the rulebooks
published the first version of its Single Euro Payments Area (SEPA) Following a three-month public consultation made with the close

Request-To-Pay scheme (SRTP) rulebook. SRTP is a messaging involvement of stakeholders from the entire payment value chain,

functionality that complements the end-to-end payment flow because the EPC published the third version of the SRTP rulebook

it allows a payee to request the initiation of a payment from a payer in a on 24 November 2022. The rulebook will become effective on

wide range of both physical and online use cases. Today, the scheme is 30 November 2023 and will include all the functionalities needed to

set to take off and already counts registered participants, as well as a enable the proper functioning of the scheme (including enrolment

pipeline of new ones that are going to launch soon. Check out its most and activation processes) and a set of new features requested by

significant benefits, achievements, latest updates, and future goals. the market – e.g., redirect option, instalment payments, request for

guarantee, request for payment initiation status.

Business benefits of the SRTP scheme

The SRTP scheme covers a compelling functionality that comple­ As of 30 November 2023, the capability to use Application Programming

ments the use of credit transfers for a better end-to-end payment Interfaces (API) for exchanges between SRTP scheme participants

user experience in retail transactions, e-invoice presentment and will also become mandatory to ensure full reachability. To this end, a

payment (EIPP) transactions – i.e., Business-to-Customer (B2C), set of EPC default API specifications were published in June 2022

Business-to-Business (B2B), and Business-to-Government (B2G) –, and the API security framework in March 2023. However, SRTP

and proximity Person-to-Person (P2P) transactions. scheme participants are free to use other commercially available

or custom APIs, as long as they secure interoperability with the

The SRTP helps streamline the end-to-end payment experience EPC default APIs.

for all parties involved and facilitates reconciliation. Moreover, the

scheme aims to facilitate the request of a payment in a digital manner As this is now a fully stable scheme, it will follow a regular maintenance

(including interoperability and reachability) and allows payees to cycle of two years (aligned with the payment scheme’s cycle). The EPC

express their payment preferences (e.g., pay now/pay later) in objective is now to foster adherence and utilisation of the scheme

alignment with their specific needs. from the market. The next version of the scheme should only include

maintenance changes. ➔

The SRTP scheme can be considered a complement to the payments

flow because it supports the end-to-end process and lies between

the underlying commercial transaction and the payment itself. The

SRTP as such can be seen as an enabler for digital payments,

especially in connection with instant payments.

38 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 What’s next on the SRTP scheme’s agenda? • The Clarification Paper on the SRTP rulebook version 3.0 was
The EPC is looking to implement various SRTP scheme-related published at the end of May 2023.

deliverables:

• The EPC default API specifications based on the third version of

• Since 21 April 2023, any Technical Solution Provider (TSP) that the SRTP scheme rulebook and version 3.0 of the SRTP scheme

wishes so may decide to undertake a specific SRTP homologation. Implementation Guidelines were published at the end of June

A duly homologated TSP will become a Referenced Technical 2023.

Solution Provider (RTSP) and will be featured on a list published

on the EPC website. The applicants using an RTSP will be eligible • The call for change requests for the next version of the SRTP
for a simplified homologation. scheme rulebook is open and will run until 29 December 2023.

• In addition to the standard homologation and the simplified • At the beginning of 2024, a new Operational Scheme Manager
homo­logation (simplified A homologation) for applicants that have (OSM) function is expected to be launched, to further improve

already gone through a relevant formal authorisation/licencing interoperability and reachability within the scheme.

process, and/or are subject to specific regulatory/supervisory

requirements, two new homologation types were launched: The EPC expects that all the aforementioned innovative developments

- the simplified B homologation for applicants using an RTSP; (homologation, EPC default APIs, Operational Scheme Manager), for

- the simplified A+B homologation (ATB) for applicants that have the first time adopted by an EPC scheme, will speed up reachability

already gone through a relevant formal authorisation/licencing and interoperability among scheme participants, ultimately incentivising

process, and/or are subject to specific regulatory/supervisory payment service providers (PSPs) and non-PSPs to rapidly join the

requirements and are using a RTSP. SRTP scheme. If your institution plans to become an SRTP scheme

participant, the EPC would be happy to guide you through the

• In July 2023, the homologation with APIs has been launched. adherence process.

Applicants that want to use SRTP-related APIs for their exchanges

with other SRTP scheme participants are now able to perform this

homologation directly.

This version of the homologation process will become mandatory

as of 30 November 2023, and the registered participants that have

gone through the homologation without APIs will have to perform this

homologation with APIs before 30 November 2023 (at no additional

cost). The homologation without APIs will disappear at that date.

The European Payments Council (EPC), an international not-for-profit association

representing payment service providers, supports and promotes European payments
integration and development, notably the Single Euro Payments Area (SEPA). The primary
task of the EPC is to manage the SEPA Credit Transfer, SEPA Direct Debit, SEPA Proxy
Lookup, SEPA Request-to-Pay, SEPA Payment Account Access, and One Leg Out Instant
Credit Transfer schemes in close dialogue with all stakeholders. The EPC is also active in
the fields of cards and mobile payments, including Person-to-Person, payment security,
europeanpaymentscouncil.eu and cash.

39 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 Link Money
Pay by Bank Is Ready to Shine in the US Market

Shaun Vanderkaap is the VP of Sales and Marketing at Link Money. Previously, Shaun worked
at Adyen, expanding the merchant base and growing new regions and products. With 12 years of
combined experience working in the payments industry across international markets, Shaun is an
experienced payments professional.

Shaun Vanderkaap VP of Sales and Marketing Link Money

As many merchants are aware, at 2-4% of each transaction, free of legacy fee structures, including Open Banking-powered

payment processing fees in the US are the highest in the world. payments in the UK and the EU, Pix in Brazil, and UPI in India.

This hidden business expense is so high that, according to the

National Retail Federation, it is the most expensive operating As the world’s second-biggest ecommerce market, and with the

cost for retailers after labour, at more than USD 160 billion annually. highest fees, the US also has the biggest opportunity for reduced

merchant fees. Given the high market opportunity, it should be only

In parallel with persistently high inflation rates, economic volatility, a matter of time before alternative payment methods come into play,

increasing cost of acquisition, and margin pressure for US despite the cultural and legislative reasons that may have stopped

ecommerce companies, conditions are seemingly ripe for alternative progress so far.

payment options to take off. However, this has not been the case

until now, for several reasons. So, what would a compelling alternative to card-based payments –

and their associated processing fees – look like in the US?

Why a viable low-cost alternative has not yet

materialised Introducing Pay by Bank: the payment method
In the US, credit cards are deeply embedded in the financial culture that could save merchants billions of dollars in
in a way they are not in other countries, through things such as processing fees per year
the necessity for consumers to develop a credit score – and bias A new, low-cost payment system in the US would need to be built

towards consumption rather than saving. on an infrastructure that removes cards from the equation and puts

a focus on lowering costs – and the fee structure would need to be

Wallets and Buy Now, Pay Later (BNPL) have significantly increased closely aligned with merchants’ interests.

in popularity in recent years, but the fact that they are built on card

infrastructure makes them needlessly expensive. And, unlike the Link Money has already launched such a solution. With

European Union or the UK, there is little legislative appetite either Link Money – Pay by Bank, we have built a payment method based

to mandate lower payment processing fees or to kick-start Open on Open Banking technology that utilises bank-based payment rails,

Banking and account-to-account (A2A) payments. removing the need to pay high credit card fees. We can process

transactions an average of 70% lower than cards, giving merchants

The US market is now spring-loaded for creative the opportunity to save billions of dollars per year in processing

disruption fees. Incumbents have little motivation to undercut themselves to

While US merchants suffer from excessive fees, other markets provide these savings to merchants. ➔

around the world have seen rapid adoption of a range of new, low-

cost payment methods that are independent of card networks and

40 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 While Pay by Bank primarily utilises ACH payment rails, it offers a This type of innovation drives three key positive outcomes:

superior customer experience and a higher payment authorisation 1. Merchants win from lower operating costs.

rate than ACH Direct Debit. This is because customers authenticate 2. Consumers win from lower prices, as the cost of doing business

in their bank app or web environment, and without having to manually is permanently lowered for merchants online and savings can

introduce their card details or their account and routing numbers. In be passed on.

fact, for repeat users, a transaction can be authorised with biometric 3. The US economy wins through more spending power for co­n­

authentication, which makes the process easier than with credit cards. sumers and more efficient use of capital.

For subscription and recurring merchants, the It’s time for US merchants to benefit from lower
benefits of Pay by Bank are 10x fees like the rest of the world
Figures for involuntary churn for subscription merchants vary – 1.4% If you are a global merchant that operates in the US, you already

by some estimates, up to 48% of all customer churn for subscription benefit from lower processing fees in other markets. Thus, you should

businesses according to others. By contrast, direct debit payments be aware of the impact that low-cost payments can have on your

have a subscription failure rate of only 0.5% – significantly lower financial situation, particularly at scale.

than cards.

At a time of excessive fees, inflation, economic uncertainty, and

With Pay by Bank, merchants benefit in two game-changing ways – increased cost of acquisition, Pay by Bank is a compelling option

lower processing fees and lower involuntary churn. At the same to offer at the checkout alongside your existing payment options.

time, merchants’ costs are lowered in ancillary ways. Since they With the seamless integration and robust customer service, the

remove card networks from their payment infrastructure, merchants process can be completed quickly so your business can start saving

won’t have to pay for services such as account updaters or tokeni­ immediately.

zation. Additionally, since bank authentication tends to be stronger

than cards, the risk of fraud is considerably diminished, which could

help merchants increase their conversion rates and their revenues.

What it means for merchants, consumers, and the

economy at large
Ultimately, innovations such as Pay by Bank have the potential to

drive down the cost of payments for US merchants at scale, as Pay

by Bank becomes more widely adopted, and incumbents are forced

to respond.

Click here for the company profile

Link Money built simple Open Banking A2A payments for the US. Our proprietary model
makes decisioning easy and even protects merchants from some ACH return codes.
Merchants can save on payment processing, reduce fraud, and create a seamless, safe,
and sticky experience for their customers without worrying about screen scraping.
link.money

41 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 Worldline
Clement Jozwiak and Nathalie Crouzet from Worldline discuss the importance of developing a coherent strategy for A2A

adoption and its benefits for both businesses and end-consumers.

Clement Jozwiak is VP of Product at Worldline Financial Services, where he drives development for
Digital Services in Europe. He has more than 15 years of experience in developing digital services in
the European payments industry, with a strong focus on digital banking capabilities and Open Banking
services.

Clement Jozwiak VP of Product Worldline Financial Services

Nathalie Crouzet is Product Marketing Manager at Worldline Merchants Services, where she
contributes to the development of Worldline’s products and services. With 24 years of professional
experience, including 15 years in payments, Nathalie has acquired a strong background in payment
services and online payments.

Nathalie Crouzet Product Marketing Manager Worldline Merchants Services

Account-to-account (A2A) payments represent We see payment as a starting point on which you can add many

one of the biggest trends in the payments industry other Open Banking services such as BNPL, credit, and so on.

over the past couple of years. What sets this

payment method apart? How can businesses and consumers benefit from
There are obvious expectations from the market for new solutions access to A2A payments?
that are cheaper, easier to use, more secure, and that provide Business can benefit from immediate reach to European citizens with

the perfect experience for both the consumer and the merchant. a bank account in Europe and better conversion rates for specific

Innovation stems from the fact that Open Banking makes A2A verticals especially with high ticket amounts. A2A allows retailers to

payments universally available, without requiring payer enrolment. offer an alternative payment option when needed.

Consumers can benefit from a full online experience, consistent

A2A facilitates a smooth across all channels and leveraging their trusted bank environment.

payment journey – and can Moreover, A2A payments allow to easily enable value added services

be a full mobile experience on top, thanks to embedded finance.

transitioning from web to app What are some of the challenges hindering the
with just a few clicks. proliferation of A2A payments?
One of the main challenges is inconsistent UX from one bank to

another. While some banks provide a frictionless and satisfying

Furthermore, A2A facilitates a smooth payment journey – and can experience for consumers, others fail to meet the same standard. ➔

be a full mobile experience transitioning from web to app with just

a few clicks. Merchants and payment processors benefit from more

freedom to tune A2A to their needs, as this provides solutions in

situations where legacy payment options are not fully suitable yet.

42 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 Achieving a homogeneous UX implementation across all European Finally, how is Worldline helping shape the future
banks could significantly boost consumer adoption. of A2A payments? What can your clients expect in
the upcoming months?
There is a need for an end-to-end offer which includes all the Worldline is actively investing in A2A to establish it as a genuine

essential features to make account-to-account payment a complete alter­native payment option for merchants, adopting a comprehensive

and convenient payment method for merchants. end-to-end approach. Starting with ecommerce use cases, A2A pay­

ments will be integrated into Worldline’s payment gateway in 2023.

Another challenge is certainly brand recognition, which plays an

important role in driving consumer adoption. Unlike established We are selecting specific verticals and geographies where there is a

players, there is no major brand associated with A2A. This stands recognised need, keeping consumer adoption challenges in mind.

in contrast to other regions, such as Brazil’s Pix and India’s UPI, Worldline customers can expect to enable A2A payments in 2024,

both of which are government-driven solutions that have achieved as another payment method, fully integrated into our complete

consumer recognition. value proposition.

Finally, the lack of remuneration for the bank is another challenge

to overcome, as this will improve in the following years with the

new regulations.

What does the future of A2A payments look like

compared to other payment methods available to
mass consumers?
A2A will complement the existing portfolio of payment methods in

the market. The combination of necessity and high-quality service

will drive adoption, even though the adoption rate will vary greatly

by geography.

A2A adoption will be faster where this is the sole option – or where

existing methods are costly for merchants. Instant payments will also

accelerate A2A, especially when instant notification is needed. A2A is

the first stone connecting merchants and banks. This connectivity

will unlock new opportunities in embedded finance, where accessing

account data allows for services like credit, loans, but also insurance

to be provided. The convergence of data and payment will be key for

the future – and it looks promising.

Click here for the company profile

Worldline helps businesses of all shapes and sizes to accelerate their growth journey –
quickly, simply, and securely. With advanced payments technology, local expertise, and
solutions customised for hundreds of markets and industries, Worldline powers the growth
of over one million businesses around the world. Worldline generated EUR 4.4 billion in
revenue in 2022.
worldline.com

43 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
Global Overview of Account-to-Account
Payment Methods
 Introduction
Recent innovations, technologies, and regulations in the payments field are meant to speed up processing payments, making funds available

almost instantly, and, thus, streamlining the cumbersome and old infrastructure via which it would take days for a payment to reach its recipient.

Real-time payments – the technological innovation boosted by the COVID-19 pandemic and the rapid global digitalisation – aim to decrease the

influence and monopole of card schemes on the payments ecosystem in banked countries across the globe, paving the way for merchants and

end-users to have various options when paying for goods or accepting payments. Renowned industry players, from merchants across different

verticals to banks and payment service providers, acknowledged the need for a system that is independent to card schemes and works on

alternative infrastructures that would not only cut out transfer processing fees but also speed up reconciliation and serve enhanced customer

services. To address this need, The Paypers has embarked on a journey to present an updated overview of the complex payments ecosystem,

focusing on two key points: local A2A schemes and methods leveraging Open Banking.

1. Local A2A schemes

Account-to-account (A2A) payments or bank-to-bank transfers represent a direct way to transfer money from one bank account to another one,

without the need for any additional payment intermediaries. However, with global regulation lacking and each country imposing its own rules and

restrictions, the process remains somewhat difficult.

This led to the need for third-party players to step in and help facilitate transactions between different accounts in the same country or, where

the infrastructure allows it, to help these players expand towards other geographies.

One major difference when looking at A2A payments and Open Banking payments is that the first runs on legacy banking rails, often built before

the digitalisation of the world, which are also hard to scale and align across borders. Thus, most A2A players keep their business local.

Bizum in Spain, BLIK in Poland, or iDEAL in the Netherlands have significantly increased their customer base and are no longer considered

emerging local payment methods but default ways to send and receive money instantly, just with access to a mobile phone number and a local

bank account. In fact, scratch that, as in developing countries, many A2A movements are from one mobile wallet account to another.

2. Methods leveraging Open Banking

With Open Banking becoming a more conventional, fast, and accessible standard of financial transactions, its live and practical application has

spread to open the gates of what is expected to be a global awakening of how companies conduct businesses and how end-users choose to pay.

Open Banking payments are defined as being fast, easy to make, and more secure than regular card payments. For businesses, Open Banking

payments mean no card processing costs, while payments settle more quickly than the ones made via cards, with payment conversion success

rates exceeding 95%.

Open Banking allows payment system users to share their data with third-party providers (TTP), which means that Open Banking payments refer

to payment system users that use the infrastructure provided by third-party providers to enable a payment. At the same time, Open Banking

payments retain most of the core benefits of A2A players but, through the help of APIs, they bring some key benefits, allowing them to expand

beyond the borders of one country.

Simply put, Open Banking is finally taking A2A payments to the masses. Thus, some companies have managed to expand their network and

reach a global audience, including Volt and Moneyhub, while others are testing the waters regionally, with most of the developments in the field

being in Europe. From Brite to GoCardless, Bankifi, Truelayer, Trustly, and Klarna Kosma, we invite you to take a close look at how the ecosystem

of A2A and Open Banking payments looks like, as we’re rapidly pacing towards the end of 2023.

45 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 LOCAL
LOCAL
LOCAL
A2A
A2A
A2A Europe
Europe
Europe AsiaAsia
Asia

SCHEMES
SCHEMES
SCHEMES Norway
Norway

Germany
Norway

Germany
Germany
Italy ItalyItaly
India IndiaIndia Japan Japan
Japan Cambodia
Cambodia
Cambodia

Finland Finland The

Finland TheThe
Netherlands
Netherlands
Netherlands
Thailand
Thailand
Thailand The Philippines
TheThe
Philippines
Philippines

Switzerland Romania
Switzerland
Switzerland Romania
Romania
GreeceGreece
Greece

North
North
North
America
America
America Hong Kong
Hong
Hong
Kong
Kong
Singapore
Singapore
Singapore Sri Lanka
Sri Lanka
Sri Lanka

Canada
Canada
Canada
US US US UK UK UK Sweden
Sweden
Sweden
PolandPoland
Poland

Malaysia
Malaysia
Malaysia Indonesia
Indonesia
Indonesia

Spain Spain
Spain AustriaAustria
Austria
Portugal
Portugal
Portugal
Slovenia
Slovenia
Slovenia
MexicoMexico
Mexico

China China
China

Middle
Middle
Middle
EastEast
East
KuwaitKuwait
Kuwait

Africa
Africa
Africa
NigeriaNigeria
Nigeria

LATAM
LATAM
LATAM
South Africa
South
South
Africa
Africa
Brazil Brazil
Brazil Oceania
Oceania
Oceania
Egypt Egypt
Egypt Australia
Australia
Australia New Zealand
NewNew
Zealand
Zealand

Researched by ® The Paypers, 2023

46 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 METHODS LEVERAGING Global

OPEN BANKING
Europe
Belgium Luxembourg UK

The Netherlands Asia

Singapore
Finland Lithuania
Germany

Indonesia

The Philippines

North
America

US
Africa
Morocco

Oceania
Australia

LATAM

Researched by ® The Paypers, 2023

47 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
Mobile Payments

• The adoption of consumer digital wallets compared with physical cards

• Benefits and pain points of carrier billing
• Digital payments in Asia: the influence of local payment culture
• SoftPOS: reducing hardware and staying digital
• Digital wallet adoption in different markets
 DIMOCO Payments
Clemens Leitner, the CEO of DIMOCO Payments, elaborates on carrier billing and its reputation, providing insights into its main

benefits and pain points based on different jurisdictions.

Clemens is the CEO of DIMOCO Payments, leveraging over 15 years of management experience
in the payments industry. He is an entrepreneurial leader known for crafting effective go-to-market
strategies, expanding into new business verticals, and hands-on management of various teams.

Clemens Leitner CEO DIMOCO Payments

Europe is a highly digitalised region, with hundreds Can you provide more insights on the overall
of payment methods available to cater to a broad adoption of CB? What are the main benefits
audience, both banked and underbanked. Where and pain points of it based on geographies and
does direct carrier billing stand in the market, and jurisdictions?
how does it differ from other payment methods? The adoption of CB varies across geographies and jurisdictions

Carrier billing (CB) holds a unique position within Europe’s payment and is influenced by a range of factors. In regions with high mobile

landscape. The payment method has found a niche, and it is a device penetration and a growing digital economy, CB has seen

preferred choice for several digital transactions. It excels in facilitating strong growth. However, a large factor for increased adoption is the

microtransactions and the purchase of digital content, such as mobile awareness among mobile network operators (MNOs), merchants,

apps, games, digital media, and more. It is also an inclusive way and end users. For example, in Germany, Poland, and Austria, we are

to make payments, and can be used by those who may not have working with MNOs and providers to actively promote the possibility

access to traditional banking. For many consumers, especially those of paying via CB in their customer base – and we are seeing a larger

hesitant to divulge sensitive financial information online, this method take-up.

offers peace of mind by reducing exposure to potential security risks.

Within the EU, the laws are quite restrictive. MNOs are only allowed

to process CB transactions if they are micropayments (under EUR

Carrier billing’s success 50) and for digital goods. To open CB for a wider variety of goods,

is down to its accessibility, we provide MNOs the option to act as a payment agent of DIMOCO

Payments, as a licenced payment service company.

ease of use, and suitability for
microtransactions. Overall, the level of adoption and the perceived benefits and pain

points of carrier billing can vary widely based on the specific

context of each region and the existing mobile payment ecosystem.

CB’s success is down to its accessibility, ease of use, and suitability We provide guidance to find the right CB strategy that maximises

for microtransactions. It cultivates trust among consumers – and revenue and reduces complexity. ➔

offers both banked and underbanked individuals a frictionless pay­

ment experience.

49 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 How do DIMOCO Payments’ core solutions differ of configurable risk tolerances to avoid any fraudulent transactions

from other similar players in the field, and can (independently of their business nature).

you please share more about your Mobile Identity

Services? Our Mobile Identity Services, which also include KYC match and phone

Many in the industry are unaware or not up to date with the recent number verification, born from our strong ties to the network operators,

changes in CB and how it has become a competitive payment method will be used to provide seamless authentication and verification.

in the crowded marketplace. Its potential, when harnessed correctly, They can be used on their own or as part of a payment to help mitigate

is huge. What makes our solution unique is our strong understanding fraud through unique risk assessment and management, all the while

of its capabilities and our close partnerships with MNOs. enabling a better user experience.

We created a solution to navigate the strict EU regulations regarding Finally, how do you see the future of carrier billing?
CB. The MNOs act as our agents, meaning users can purchase – at Can the model be spread to include paying for
our partner merchants – physical goods and services instead of physical goods and services too?
being restricted to digital materials. In Germany, we worked with As smartphone adoption continues to grow, this payment method

the MNOs to establish Zahl einfach per Handyrechnung. Under this becomes even more relevant. It is a straightforward and secure means

brand and with DIMOCO Payments’ payment licence, the largest of conducting financial transactions. It aligns with the cashless trend,

German MNOs allow users to make day-to-day purchases. It is enabling individuals to access digital goods and services, pay bills,

currently in operation with bike rental centres, vending machines, and make small purchases conveniently. As long as mobile phones

EV charging stations, public transport, and more. We use this model remain prevalent and mobile carriers continue to support this payment

throughout the EU to facilitate payments and widen the scope of method, CB is likely to play a vital role in the digital economy.

CB payments.

The expansion of CB to include payments for physical goods and

Our ties with MNOs allow us to explore other avenues. Mobile phone services is already on the way. As technology and infrastructure

numbers are the most omnipresent, reliable, and long-lived identifiers continue to advance, CB could become a viable option for a broader

of the digital age – they are the ideal digital identity of the mobile range of transactions. However, several challenges must be addressed,

world. Mobile phone numbers exist only once, are tied to one including ensuring security, fraud prevention, and regulatory com­

person, and are network-based. The MNOs have a pool of this pliance when handling larger, more complex transactions. Collaboration

unique and non-manipulable data. We are working with them so that between mobile carriers, merchants, and payment service providers

this information can be used for authentication and identification will be crucial.

purposes.

The success of this expansion hinges on several factors: increased

For example, with the data from the MNOs, we can tackle SIM transaction limits, seamless integration with point-of-sale systems,

swapping. This occurs when fraudsters take control of a SIM card and user education. Regardless, it holds the potential to simplify

using stolen personal data through social engineering techniques. pay­ments further for consumers and offer a viable alternative to

The service provider (merchant) receives information on the last traditional payment methods.

SIM change for a mobile phone number – and so, an indication of

Click here for the company profile
whether the SIM card has been swapped. This enables the setup

DIMOCO Payments is a licenced payment institution and acquirer. With over 20 years of
experience, it provides a holistic payment service tailored to individual needs. With expertise
in complex payment setups, DIMOCO Payments provides a consultative approach,
partnering with merchants and enabling them to reach their payment goals.
dimoco.com

50 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 Edgar, Dunn & Company
Will the Digital Wallet Replace the Physical Payment Card?

Mark Beresford is a Director at Edgar, Dunn & Company (EDC) and has over 30 years of strategic
consulting experience in the payments sector. He is responsible for the company’s Retailer/Merchant
payments practice, working with omnichannel merchants and payment service providers across the
globe.

Mark Beresford Director Edgar, Dunn & Company

Elisabetta Nadal is a Business Analyst at Edgar, Dunn & Company (EDC) based in the London office.
Since joining EDC, she has worked on global projects for international issuers, card payment schemes,
and payment technology companies. She specialises in sizing and forecasting the growth of a variety
of payment products, including commercial card programmes and consumer digital wallets.

Elisabetta Nadal Business Analyst Edgar, Dunn & Company

Digital wallets (also known as e-wallets) have been gaining popularity Here, EDC has forecasted the expected growth and a definitive shift

worldwide as they offer consumers numerous benefits, including from physical payment cards to digital wallets by 2030.

convenience (without the need to carry physical cards or cash),

contactless payments, enhanced security, and the ability to integrate We ought to mention some challenges that were met in this

multiple payment methods and loyalty programmes into a single analysis. Firstly, the availability of data about digital wallets in certain

app. With the proliferation of smartphones and internet connectivity regions and countries is not always reliable. Secondly, how digital

and consumers increasingly embracing mobile technology and payments wallets are funded is commonly by a traditional credit

seeking streamlined payment experiences, digital wallets continue or debit card. This can lead to some degree of double counting

to evolve and gain prominence. of the transactions. We had to take this into account and draw on

our in-house knowledge and experience of local market conditions

In 2022, on a global basis, we estimated for every five transactions, and regional variances. Lastly, the third challenge encountered was

three were conducted using a physical card, whereas two were the diversity of digital payment wallets and how they are defined.

through a digital wallet. Transaction value through digital wallets was Importantly, the infographic below encompasses a broad definition

USD 50 trillion in 2022 – and is expected to reach USD 96 trillion by of digital wallet, whereby focusing on consumer wallets, including

2030. Digital wallet adoption would vary across different regions and stored value wallets, and passthrough wallets that are open-loop or

countries. Some countries, particularly those with advanced digital universally accepted, but excluding closed-loop wallets issued by a

infrastructure, such as North America and Europe, have already particular merchant or retailer.

seen a significant shift towards digital payments. Meanwhile,

others may need more time to transition due to factors such as The list of available digital wallets is growing, and in this analysis,

technological limitations or cultural preferences. we included Alipay, Amazon Pay, Apple Pay, Click to Pay, G-Cash,

Google Pay, Masterpass, M-Pesa, PayPal, Paytm, Samsung Pay,

In this article, EDC has conducted a regional analysis of the Shop Pay, Venmo, Visa Checkout, and WeChat Pay, among the

adoption of consumer digital wallets compared with physical cards. others. This is not meant to be an exhaustive list but an illustration

of the type of consumer digital wallets considered in this analysis. ➔

51 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 Figure 1: Regional overview of physical vs digital codes across many cities in India. This increase in popularity was

mainly determined by Paytm’s support of UPI (Unified Payments

Interface), which, in turn, is backed by the National Payments

Corporation of India (NPCI).

G-Cash, a popular digital wallet in the Philippines, was first

launched in October 2004. Over the years, G-Cash has expanded

its services and features, including making online and in-store

payments, purchasing goods and services, and even investing

and saving money. It has become one of the leading digital wallets

in the Philippines, offering convenient and accessible financial

Source: 2023 EDC Analysis services to millions of users.

The infographic above shows that developing and emerging regions Digital wallets support a range of payment methods, such as

are leading the way in terms of digital wallet usage. Africa has a credit cards, debit cards, bank transfers, prepaid cards, and even

huge number of digital wallets, whereas physical cards are not cryptocurrencies. Some wallets specialise in specific payment

widely available or even accepted. Therefore, Africa is a good methods, while others offer compatibility with multiple methods.

example where digital wallets have taken a technological and This diversity allows users to choose wallets based on their preferred

consumer behavioural leap and skipped the physical card. Similarly, payment options. Within the EDC Retail Practice, we believe that

in APAC, the shift to digital wallets has largely been driven by China, it is important for merchants to evaluate the costs and benefits

where Alipay and WeChat Pay are dominating consumer payments. of each digital wallet before deciding which ones to support, as

In both the Africa & Middle East and APAC regions, the digital wallet supporting too many digital wallets can also lead to additional costs

usage is over 71%. and complexities in payment processing and reconciliation – not to

mention a cluttered checkout or exclusion of any specific segments

Digital wallets have evolved at different paces in different markets. of wallet users within a physical store.

Their adoption varies across different regions, as illustrated by

the above infographic. Usage can be influenced by technological Figure 2: Growth of digital wallets vs physical cards
infrastructure, regulatory environment, cultural preferences,

and consumer behaviour. For instance, PayPal has a significant

presence in Germany as it entered the German market relatively

early and established itself as a trusted and convenient payment

option for ecommerce, where local physical cards were not

ecommerce friendly.

Kenya has witnessed a remarkable adoption of digital wallets,

particularly with the success of M-Pesa. Nordic countries, including

Denmark, Sweden, Norway, and Finland, have seen widespread

adoption of mobile wallets. MobilePay in Denmark and Swish in Source: 2023 EDC Analysis

Sweden are popular examples.

The growth of physical cards in terms of Gross Dollar Volume (GDV)

India has witnessed significant growth in digital payment wallet is estimated to be at most 10% until 2030 in four of the five regions.

adoption, driven by the government’s push for digitalisation and Only LATAM shows a CAGR of 12% on the GDV for physical card

the demonetisation of certain currency notes. Wallets like Paytm transactions. On the other hand, the GDV growth for digital wallets

and Google Pay have gained popularity, and they are commonly (for ecommerce and offline/in-store) shows impressive double-digit

used for person-to-person transfers, bill payments, ecommerce growth in Europe (11%), MEA (18%), and LATAM (23%). ➔

transactions, and even offline payments at merchants through QR

52 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 North American consumers appear to be still in love with their the different solutions available or do not understand how to use

physical cards, since the growth of the GDV for digital wallet them. This can lead to a frustrating customer experience and may

transactions is comparable to that of physical cards, with an even cause some customers to abandon their purchases altogether.

expected 8% CAGR from 2022 to 2030. We are already seeing this in the more mature digital payment

markets. Nevertheless, having multiple digital wallet options can

In APAC, digital wallets, with 73% of transactions made through this also provide customers with greater flexibility and convenience.

payment method, are outperforming physical cards. The expected

growth of digital wallets in APAC is 9% CAGR from 2022 to 2030. To mitigate confusion and ensure a positive customer experience, it

Furthermore, in 2030, the APAC digital wallet GDV is expected to is important for merchants to clearly communicate which digital wallet

be almost 33 times the digital wallet GDV of transactions of the solutions they support, as well as provide clear instructions on how

other four regions combined, as China, India, Japan, South Korea, to use each one. Merchants can also consider offering guidance and

Singapore, Malaysia, and the Philippines are the early digital wallet support to customers who may be unfamiliar with digital wallets or

adaptors. For this reason, the scale of the graph above had to be need help when choosing the best option for their needs.

adjusted to make a side-by-side regional comparison possible.

In summary
Click to Pay is another example of digital wallet, developed by The success of any digital wallet ultimately depends on its ability

EMVCo and owned by American Express, Discover, JCB, Mastercard, to meet the needs of both merchants and consumers, as well

UnionPay, and Visa, which manages the EMV specifications for chip- offering a seamless and secure payment experience. By 2030,

based payment cards. Launched before the COVID-19 pandemic, the choice of digital wallets will continue to grow with increased

Click to Pay is hoped to simplify the process with one standard consumer adoption. The ability to integrate and accept them is

digital wallet instead of six differently branded digital wallets. Visa becoming more complex for merchants. As the payment landscape

has already announced that it is phasing out Visa Checkout and continues to evolve, merchants and consumers will continue to

transitioning to Click to Pay as its primary digital payment solution. demand innovative and convenient payment methods that meet

Similarly, Masterpass (from Mastercard) is expected to be replaced by their specific needs. This could lead to the development of new

the Click to Pay solution moving forward. This could be a defensive wallets with different features and capabilities – or the evolution of

strategy as the Asian digital wallets spread from the East to the West, existing wallets to better meet the changing needs of the market.

gathering pace along the new digital silk road. The payment function is only the tip of the iceberg for digital wallets.

There are many more consumer and merchant financial services that

Digital wallets are truly a global phenomenon and have reached are expected to be embedded in digital wallets in the next wave of

mass market adoption in many markets; however, they cater for digital innovation leading up to 2030.

specific regions, adapting to local regulations, market needs, and

consumer preferences. This resulted in the development of wallets Will the digital wallet replace the physical card? As the physical card

with localised features, language support, and integration with local is not expected to replace cash, the digital wallet is not expected to

payment systems. replace the physical card – however, the life of the physical card is

limited. By 2030, we will see the digital wallet as a sophisticated and

For any merchant, accepting too many digital wallet options can preferred payment instrument that provides a lot of non-payment-

potentially confuse customers, especially if they are not familiar with related services for consumers.

Edgar, Dunn & Company (EDC) is an independent global payment and fintech consultancy.
The company is widely regarded as a trusted adviser, providing a full range of strategy
consulting services, expertise, and market insights. EDC expertise includes M&A due
diligence, legal and regulatory support across the payment ecosystem, fintech, mobile
payments, digitalisation of retail and corporate payments, and financial services.
edgardunn.com

53 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 Kapronasia
Digital Payments in Asia Are Still in a Liminal Phase

Joshua is an analyst at Kapronasia and has experience across banking, payments, and capital
markets. Before Kapronasia, Joshua was with Morgan Stanley Equity Research in London and
held strategy and business development roles with UK-based fintechs in the payments and asset
management industries. Joshua graduated from the London Business School with a Master of Science
in Financial Analysis and holds a BBA degree from BI Norwegian Business School.

Joshua Chong Analyst Kapronasia

Aftermath of the wallet wars 3. Pass-through wallets (Apple Pay, Samsung Pay): These wallets

People living in Southeast Asia may remember a time, not too long are linked to a credit or debit card, and the consumer’s card infor­

ago, where new digital wallets seemed to be launched every day, mation is utilised directly. As card penetration is very low in most

and promotion campaigns would offer eye-watering cashbacks and Asian markets, this wallet is rarely seen outside of developed

massive discounts. Unsurprisingly, this could not go on forever. markets such as Singapore or South Korea.

Standing in the wake of the ‘wallet wars’, the winning wallets have Staged digital wallets are widely used in many developing Asian

become household names, while many others have fallen by the markets as they are easily accessible and don’t require a bank

wayside or merged into a larger entity. While marketing budget and account or card ownership. The user’s journey of loading small

promotional strategy were undoubtedly key factors, one other angle sums and making small value transactions also fits in well with the

to consider is how the wallet facilitates payments – and the impact purchasing habits in sachet economies prevalent in Asia. At this

this had on adoption. juncture, the leading staged wallets have crossed the education

and awareness barriers and gained sufficient user trust to see a

In the Asian market, there are three main types of wallets/pseudo- significant and consistent number of daily active transactions.

wallets: However, given the razor-thin margins on payments, wallets that

1. Staged digital wallets (GrabPay, GoPay, ShopeePay): Staged are part of a larger super-app ecosystem have turned to the parallel

wallets require users to first load value into the wallet via bank distribution of financial and other services to improve monetisation

transfer, card payment, or at a physical retail outlet such as a with unclear results.

convenience store or gas station. Payments made are deducted

from the pre-loaded value on the wallet. Conversely, traditional banks which have been chided for lagging

2. Account-to-account (A2A) real-time direct debit (bank-launched in technology have made notable progress with launching A2A

app): This refers to domestic real-time payment networks linked real-time payments that may pose a strong challenge to staged

directly to a user’s bank account, where payments are debited wallets. Making use of national real-time payment rails such as

from the bank account instantly. While some banks have created PayNow (Singapore), DuitNow (Malaysia), or PromptPay (Thailand),

a separate wallet application, in many cases it is technically not banks now offer consumers the option to pay via QR code directly

a wallet, but it is often used in a similar way and utilises the same from their bank account. For consumers, the main benefit of this

standardised QR code as other e-wallets. approach is that they don’t need to load value or have a card ➔

54 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 present. For merchants, the MDR fees are much lower or even Influence of local payment culture on digital adoption
subsidised, and funds are received instantly. Thus, it is fairly common The stark diversity of local payment culture across Asia contributed

to find a small business in Singapore that accepts, for example, significantly to the extent of digital adoption.

PayNow but not GrabPay. Ecommerce marketplaces such as Lazada

and Shopee also offer 0.5%–1% off for consumers who opt to use According to data from FIS, while Asia as a region leads in the push

PayNow. towards digital payments, cash still plays an essential role in markets

such as Thailand and Japan, where it accounts for 56% and 51%

Nonetheless, using a bank account is first required for this payment of POS transactions respectively. Despite progress in increasing the

service but with heightened government emphasis across Asia on banked population in Thailand, traditionally high rates of unbanked

increasing banking penetration, A2A payments may indeed pose a population means that card adoption hasn’t really picked up.

serious and sustained threat to staged wallets. Digital wallets have gained some popularity, but it is A2A payments

via PromptPay that have become Thailand’s leading online payment

SoftPOS, hard sell? method, accounting for 42% of ecommerce transaction value in

The concept of SoftPOS sounds very attractive in theory but putting 2022. This doesn’t come as a surprise, as A2A most closely mimics

it into practice has its fair share of challenges around security and a cash-based transaction with real-time settlement for the merchant.

terminal management. Moreover, most SMEs in Asia, the target

market for SoftPOS, prefer paper-based transactions and would The attachment to cash in Japan, on the other hand, can be attributed

want to print out a paper receipt after each transaction. This doesn’t to an aging population, a vast ATM network and high card acceptance

fit well with a key concept of SoftPOS, which is to take a minimalist fees. However, there is also a cultural aspect to physical bills and the

approach to payments by reducing hardware and staying digital as ceremonial role it plays. With a culture steeped in tradition, many small

much as possible. Another key factor has been the falling prices of businesses have resisted the cashless trend and their customers have

Android Smart POS, along with their enhanced capabilities which respectfully followed along. Even FIS data predicts Japan will have

now include a built-in printer, GPS, and even a loudspeaker to the highest cash rate by 2026 at 37%, while digital wallet adoption

broadcast transactions and new orders. will accelerate across Asia. It appears Japan isn’t quite ready yet for

a cashless world.

The uptake of SoftPOS still remains very low across Asia, and much

of the hype around it replacing traditional POS died. Nonetheless,

SoftPOS still has a role in Asia, albeit a minor one. It is best positioned

as a supporting cast member of a more comprehensive POS terminal

offering, where the new line of sleek and well-equipped Android

Smart POS takes centre stage. Meanwhile, SoftPOS can address

niche situations that play to its strengths, such as serving tourists at

luxury brand shops or airports.

Kapronasia is a leading independent research and consulting company focused on

the Asian financial services industry. We help financial institutions, technology vendors,
consultancies, and private equity companies understand the impact of business,
technology, and regulatory issues in banking, payments, insurance, and capital markets.
kapronasia.com

55 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
Debit and Credit Cards

• How merchants can make the most of debit competition

• Debit cards as one of the most efficient payment methods
• The future and benefits of tap-to-pay payments
• The US debit card spending – higher than ever
• Contactless payments and their impact on the global digital payments market
 CMSPI
The US Debit Card Spending – Higher and More Efficient Than Ever

Christian manages the company’s industry engagement and strategies on regulatory trends, finding
innovative ways to develop data-driven narratives on the biggest issues in the payments industry.
Christian works with stakeholders across the payments industry to promote competition and foster a
more productive payments ecosystem, drawing on CMSPI’s market-leading data insights.

Christian Johnson Senior Manager – Global Advocacy CMSPI

Despite the rampant talk of rising spending via alternative payment reports indicate that digital wallets represent 32% of online

methods, one thing is clear from the latest Federal Reserve spending, it is worth noting that many of those payments may

Payments Study: debit card payments represent one of the most simply rely on debit cards.

popular payment methods in the US. In this article, we will discuss

why debit remains one of the most popular and efficient payment What makes debit one of the most efficient payment
methods – and why nearly 10% of debit transactions between methods?
January and June 2023 occurred on cards where the issuer had In one word: co-badging.

changed the networks available to merchants.

As a result of regulation dating back to 2010, debit cards in the US

Debit volumes have risen significantly but may be offer merchants multiple competing network rails for an individual

underreported transaction. Until recently, this competition has primarily been

According to the Federal Reserve’s 2022 Payments Study, debit available on card-present, PIN-entered transactions, but as of

cards accounted for nearly 88 billion payments – approximately 1 July 2023, co-badging and routing should be guaranteed for all

56% of all card payments in the US – in 2021. This amounts to an card-present and card-not-present transactions. In contrast, credit

800% increase in debit card transaction usage over the past two cards in the US are typically badged with only one card network,

decades. prohibiting merchant routing choice.

While digital wallet volumes have reportedly grown substantially, With multiple network options on a card, merchants are able to

it’s important to recognise that the underlying payment method for dynamically send each transaction to the most efficient network.

most digital wallets in the US is some form of bank account or card, For example, the merchant may elect to route a transaction to

most typically a debit card. For example, wallets such as Apple Network A if it’s the most affordable for a USD 10 transaction – or

or Google Pay are usually card-backed, meaning the underlying to Network B if it’s most affordable for a USD 100 transaction.

payment credential is a payment card. According to CMSPI estimates, debit routing in the US and across

the globe is saving merchants billions of dollars:

Similarly, reloadable wallets typically utilise a card or bank account • In the US, we estimate that debit routing is estimated to save
as the underlying funding mechanism. For merchants who have merchants over USD 4 billion annually.

elected to turn on contactless acceptance for in-store transactions, • In Germany, routing to the local scheme Girocard can save mer­
accepting a card-backed or reloadable wallet isn’t really a choice, chants EUR 200 million annually.

as there are no distinctions between the contactless card and near- • In Australia, merchants can save an estimated AUD 800 million
field communication (NFC) used by digital wallets. Thus, when annually with access to eftpos, the domestic debit network. ➔

57 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 In addition, some merchants are able to utilise their debit volumes Figure 1: Share of transactions occurring on cards where
to attract favourable pricing with individual networks. If a merchant the networks have changed
observes that 70% of their transactions could be sent to Network A,

they may elect to guarantee Network A routing priority for all available

volume in exchange for interchange rebates, network fee cost

reductions, or per transaction discounts. Essential to this calculus

is understanding the real-time, card-level availability of the near-

dozen debit networks in the US.

How frequently can debit networks change on

cards?
After a debit card is issued in the US, the issuing bank can adjust

the available networks badged on the card without any need to

reissue the card. As a result of this dexterity, US issuers regularly

decide to change the available networks on cards, resulting in

significant disruption for debit-routing merchants.

The extent to which available networks change on cards appears

to be increasing. From January to December 2022, CMSPI’s debit

optimisation tool observed that nearly 10% of transactions occurred Source: CMSPI’s Debit Optimisation Tool

on cards where the networks were different from the beginning of

the period. This year, however, is shaping up to be one of the most How can merchants make the most of debit
active with respect to network issuance changes, with nearly 8% of competition?
transactions occurring on cards where the networks were different It is clear from the Federal Reserve’s data that debit represents

from January to June (Figure 1). one of the most dominant payment methods in the US, and it is

still growing to the tune of 7% YoY. With debit’s enduring role in US

These swings in availability can seriously disrupt volume-based payments, it is essential for merchants to review their own data to

merchant debit incentives, as even just a 1% drop in network understand their exposure to networks and how that is changing

issuance can cause a merchant to fall below the required volume over time.

tier for incentives.

Network badging changes can occur simply due to the change in

an issuer and network’s relationship, without any forewarning to

merchants. In some months, up to 2.5% of transactions can take

place on cards with different networks from the preceding month.

This means that merchants must monitor network issuance changes

regularly to ensure that their arrangements are and remain optimal.

As the leading global payments consultancy, CMSPI has an unrivalled track record of
saving global merchants millions by optimising their payments supply chain.

cmspi.com

58 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 myPOS
Stephane Pilloy, Chief Executive Officer, myPOS, discusses the future of Tap-to-Pay payments, their broader global acceptance,

and the benefits this type of contactless payment can bring to merchants and customers alike.

Stephane leads myPOS in Ireland, where recently the company secured authorisation as an EMI.
He boasts an extensive banking career, including a number of payment and card providers such as
Vocalink, Nexi, Cofinoga, John Lewis Financial Services, and M&S Money. Stephane joined myPOS in
2018 to oversee the regulated entities within the group.

Stephane Pilloy Chief Executive Officer myPOS

With the widespread availability of NFC and a 68% payments. With a SoftPOS solution, merchants get access to digital

smartphone penetration rate globally, contactless tools such as reporting, invoicing, inventory management, receipts

payments experience steady growth. What does by text message, payments by link, and more. They can also receive

this mean to SMEs, and how can this trend further the funds from card payments in seconds.

impact the global digital payments market?

The evolution of near-field communication (NFC) has opened up So, smartphone penetration and NFC technology mean that SMEs

contactless payments to a wide range of merchants – however have access to more tools that can help grow their business,

small they may be. Thanks to NFC, SMEs have the freedom to without sacrificing security for convenience. Additionally, paying on

take payments via their own devices, earn more, and improve a phone is easy and fast, and the easier it is for customers to make

competitiveness. a purchase, the more likely they are to buy. Thus, SMEs benefit from

better customer service, more impulse purchases, and higher sales.

Overall, the technology is convenient, efficient, and secure – and it

Our strategic partnership means the SMEs can save time and money.

with Samsung has been a key As far as how this trend will shape the global digital payments
enabler for the adoption of market – the expansion of NFC technology and its implementation

SoftPOS across Europe. in smartphones will continue to spur market growth. The digital

horizon keeps expanding, so merchants must ask themselves how

they are keeping up with the digital transformation. Are they making

the most of innovative technology and giving consumers the secure

The surge of micro and small businesses means that for many and convenient experience they expect? At myPOS, we stay at the

merchants this is the first time they’ve been in business – and the forefront of payment innovation on behalf of our merchants and

learning curve is steep. Many small businesses are hesitant to adopt their customers.

new digital solutions in fear of costs or lack of knowledge about

complicated systems. The high smartphone penetration and the There is a lot of potential for Tap-to-Pay (TTP) tech­­
availability of NFC address these concerns. no­logy, especially on the merchants’ side. Is this
payment method perceived as secure, and what is
The fact that no additional equipment is needed with Tap-to-Pay the adoption rate you see?
technology means that merchants can take payments at festivals, NFC payments are secure, and we aim to educate business owners

local markets, and any other distant location where their trade is of the advantages of TTP technology. What’s more, over the years,

based. Additionally, the benefits of Tap-to-Pay go beyond accepting myPOS has been working to integrate software security solutions ➔

59 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 into its myPOS Glass application and the payment core. These In the case of the Austrian Federal Railways (ÖBB), Samsung and

solutions prevent all known methods for compromising an Android myPOS enabled conductors to sell tickets directly on the trains.

app – protection against emulators, application integrity checks, ÖBB staff are now equipped with a Samsung X-Cover smartphone

protection of C++ code in all libraries, and so on. We built an that has myPOS Glass. This initiative includes trains traveling across

exceptional server system, ensuring the secure transport and storage eight countries: Austria, Switzerland, Germany, Italy, Belgium, the

of keys and sensitive information. Netherlands, France, and Croatia.

As a result, with myPOS Glass, our merchants can securely accept

all kinds of EMV-based cards by Visa and Mastercard and all digital

wallets. Moreover, they can accept QR-code payments and receive

all the accepted funds in seconds, in a free myPOS account.

Overall, as global smartphone penetration is growing, our role is to

create new payment-acceptance opportunities for business owners

by leveraging innovative technology. In the last three years, we’ve

been able to not only roll out new acceptance solutions for the

merchants, but also show thousands of cardholders that SoftPOS

is a legitimate and trustworthy technology. Additionally, our strategic

partnership with Samsung has been a key enabler for the adoption How do you see the adoption and development of
of SoftPOS across Europe. TTP technology in the future?
TTP acceptance is growing. The NFC contactless payment method

Can you further address your partnership with saw a boost from the COVID-19 pandemic when even cash-centric

Samsung and share some valuable insights from it? countries became enthusiastic adopters of touchless purchases.

Our success stories with myPOS Glass span across a wide range of Now, ongoing innovation in secure payment technologies is

industries. In the transportation sector, we partnered with Samsung strengthening the market growth and so is the demand from

to deliver maximum convenience to passengers because they are merchants and consumers for speed.

turned off by complex payment methods and prefer to use wearable

and mobile devices instead of pulling out their wallets when traveling. As a result, the future of payments will involve a greater emphasis

on digital and mobile, and myPOS will continue to drive change by

As a result, myPOS Glass is now part of Austria’s national railway and responding to consumer demands with tech innovations. Thanks to

FMS, Europe’s leading taxi dispatching system. The FMS platform is myPOS Glass, now even the smallest merchants can easily accept

used by more than 200,000 drivers in 11 countries. The taxi drivers digital payments, and larger merchants can create new experiences

are using Samsung devices, which have a preinstalled myPOS Glass valued by their customers. Our goal is to present business owners

app, to accept contactless payments from their dispatch terminals, with new possibilities and expand payment access one tap at a

which are typically used for navigation and communication. In the time.

past, accepting payments was done through separate hardware.

Click here for the company profile

myPOS is a cross-border payments and business platform trusted by merchants in

more than 30 countries. Apart from being the first to offer instant settlement at no added
cost, myPOS was among the pioneers in the Tap-to-Pay field. The company launched its
SoftPOS solution three years ago, bringing unique technology to all European merchants.
mypos.com

60 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
Crypto Payments

• The adoption of crypto payments looking towards 2024

• The advantages and risks of accepting cryptocurrency
• The unpredictable elements of cryptocurrency
 MRC
Should Merchants Accept Crypto Payments? Looking Towards 2024 – Pros and Cons

Tracy Kobeda Brown is the VP of Programs and Technology for the MRC. She was head of product
for Fragomen, Lockerz, and the CEO of Evil Genius Designs. Tracy created the American Eagle
Outfitters website, ae.com, and served as CISO. She earned her master’s degree from Carnegie
Mellon and her bachelor’s degree in economics from The Wharton School.

Tracy Kobeda Brown VP of Programs and Technology MRC

The past year has seen many changes in the fraud, risk, and This past year has seen crypto adopted or backed by mainstream

payments industries. Supply chain challenges are almost sorted, financial institutions. Reasons include customer demand, access to

pandemic recovery no longer dominates every news cycle, and new markets, and diversification, among others. This provides the

crypto experienced interesting headlines in the last year. We perception of stability to some customers who may be wary, while

survived the Crypto Winter, the collapse of Silicon Valley Bank (and other customers could eschew this as it stands in opposition to why

others), the fallout of crypto bankruptcies – and yet, some crypto they choose crypto in the first place. Regardless, financial institutions

prices seem to have recovered into late 2023. What has changed are watching the same things merchants are – regulatory uncertainty,

for merchants accepting crypto as part of their payment stack? volatility, security, and fraud concerns that have only begun to surface.

Enthusiasm for new technologies is a key part of innovation, but it Perhaps the single most compelling reason merchants should

must be tempered with strategic and practical implementation to be consider accepting cryptocurrency is their customers’ will to pay

successful. Determining whether crypto is a good fit for a merchant’s with it. Providing the payment method that consumers want will

payments stack requires thoughtful analysis of the advantages and empower them to spend more. It also enables those without access

disadvantages cryptocurrency acceptance provides. It is not a to traditional banking to engage with the economy – and will likely

simple decision, and rapid evolution makes it even more difficult. continue to play a pivotal role in emerging markets. This is still a key

consideration. Crypto is only one of the payment methods showing

The advantages of accepting cryptocurrency adoption, in conjunction with alternative, local, and peer-to-peer

Many of the reasons consumers are drawn to cryptocurrency as a payment methods.

payment method are advantages for merchants as well. After an

initial learning curve for consumers, cryptocurrency offers virtually These are some of the reasons why 73% of small businesses say

instantaneous transactions that are cheaper than many traditional that new forms of digital payments are fundamental to their growth,

payment methods due to fewer third-party fees. Crypto also simplifies and why larger merchants have been cautiously exploring this space

cross-border transactions and mitigates the inconvenience of for a long time. ➔

currency conversion.

A powerful potential advantage of accepting crypto for merchants is

the finality of the purchase. In most transactions, there are no refunds

and no costly chargebacks. All sales are final. While this can free up

resources, a potential downside is the added burden to customer

service departments when a consumer regrets a purchase.

62 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
 The risks of accepting cryptocurrency There are other challenges too, including the best way to store

As compelling a reason as customer preference might be, there are cryptocurrency, privacy concerns given the transparency of the

obstacles that need to be considered as well. public ledger, how to account for it as revenue, and when to convert

it to traditional currency.

The most obvious concern is continued volatility. The wild swings

of even the most stable cryptocurrencies make pricing items a Should you accept crypto?
struggle – and cryptocurrencies a challenging fit for subscription- As of 2023, global crypto ownership rates average 4.2% of the

based merchants, where predictable revenue streams are a critical population, with over 420 million crypto users worldwide. However,

part of a successful business model. The price swings that plagued accepting crypto just because others are is not a viable strategy,

the crypto market early on may be less dramatic and more in line especially if it’s antithetical to your business model or not a good

with traditional currency exchange rates, but it’s impossible to fit for your customers.

predict when, or if, that will happen. The past year is no different

as it has demonstrated continued volatility for numerous reasons. Last year, we started with a simple question: do your customers

want to pay with crypto? And while this is still a valid question, with

Another unpredictable element of cryptocurrency is the shifting the continued innovation in payments, now we have to add ‘what

regulatory landscape. It’s still the early days of crypto, and the is the method the majority of your customers wish to pay with, and

global patchwork of regulatory infrastructure makes compliance a how does that align with your internal business and profitability

challenge. This may cause problems for global merchants who must priorities?’. If the answer to the first question is yes, remember

accommodate a wide variety of vastly different regulations. There that, as adoption grows, so do third-party companies that can help

are existing payments-related regulations that global merchants with this complex process, regardless of your organisation’s size.

must consider but the relatively untested legal and regulatory There are many logistical considerations when adopting crypto

landscape of cryptocurrency makes predicting what’s coming and into a payments stack but it is much easier to accomplish than it

adapting to it a significant challenge. These are topics that are was a few years ago. Merchants don’t have to do it all in-house,

receiving attention at the G20 summit, and various countries are and they don’t have to do it alone, but they do have to make sure

introducing bills to regulate the cryptocurrency market. their priorities align with the product offering roadmap from their

third-party solution providers. If the answer is no, or not yet, it is still

The types of fraud associated with traditional payment methods are worth gaining education and insights while the market is maturing.

also being seen with crypto. According to the 2023 MRC Global Knowing your risk appetite combined with practical knowledge

Payments and Fraud Survey, phishing remains the most common as well as what competitors are doing is vital to good discussion.

fraud attack merchants are dealing with, and crypto users would

not be immune to this. Account takeovers will have more serious

impacts for customers with little recourse at this time. Tracking fraud

by payment type will become a useful KPI and input into decision

solutions (whether rule or machine learning-based).

The go-to place for ecommerce payments and fraud professionals across the globe!
Established in 2000, the MRC is a global non-profit membership association for payments
and fraud prevention professionals. The power of MRC membership lies in staying
connected, current, and empowered to influence and transform the industry.
merchantriskcouncil.org

63 Payment Methods Report 2023 | Payment Methods in Focus and Future Developments
Latest Updates in Payment Habits

• Super apps and social commerce as a new way of doing business

• How the influencer culture shapes the future of digital payments
• The role of payments in gig economy
• Digital payments for greater economic fairness
• The evolving payment landscape and pioneering seamless transactions
 Accenture
Super Apps and Social Commerce – A New Global Way of Doing Business

Ryan is Managing Director of Accenture’s Payments and Open Data Practice for Australia, New Zealand,
and key Asian markets, leading a local team of payment advisors and technology specialists whose
strategy, consulting, and execution capabilities put Accenture’s clients at the leading edge of the
payments industry.

Ryan McQueen Management Director Payments and Open Data Practice Accenture

Evolving payment habits – super apps and social are not directly coupled to legacy back-end systems and can,

commerce therefore, be developed independently of these systems. Common

In the aftermath of the COVID-19 crisis, the tempo of change in use cases of headless commerce include:

consumer behaviours and expectations has hastened. Geopolitical • Omnichannel payment experiences, where consumers can, for
shifts, accelerating digitisation and significant economic turbulence example, start a purchase online and complete the process seam­

are reshaping how people pay and move their money. At the same lessly in-store;

time, the friction-free experiences offered by social and ecommerce • Non-traditional partner models, where consumers can purchase
platforms are setting new benchmarks for consumer payments. products directly from the website of a merchant’s partner while

remaining on the original merchant’s website to continue their core

Accenture’s 2022 global consumer payments survey of 16,000 ecommerce journey.

customers in 13 countries spanning Asia, Europe, Latin America

and North America found that more than half of all consumers have Technologies that improve checkout experiences directly address

adopted digital payment methods such as digital wallets, many the issue of how much consumers spend with a merchant.

of which displace banks’ brands from the customer experience. Cumbersome checkout experiences contribute to high levels of

Traditional payment methods still dominate most markets, but online shopping cart abandonment. According to research by

next-gen alternatives are rapidly gaining share. Baymard Institute, approximately 70% of online shopping carts

are abandoned, directly impacting sales revenues.

As consumers seek simpler, faster ecommerce experiences, and the

ability to pay anywhere, anytime, anyhow, we have seen merchants What is a super app?
and marketplaces leverage headless commerce technologies to A super app is a mobile or web application that can provide multiple

enable end-to-end and omnichannel shopping experiences on services, including payment and financial transaction processing.

online, mobile, and social media channels. Meanwhile, we have It is a self-contained commerce and communication platform that

seen super apps emerge from traditional financial services players embraces many aspects of personal and commercial life, including

and next-gen payment providers. activities like travel, entertainment, traffic updates, personal services

from providers such as doctors, and more.

What is headless commerce?

Headless commerce is a term used to describe the way the Today, there are only a handful of true super apps – such as Line

front-end (head) of ecommerce can be decoupled from back-end in Japan – most of them in Asia-Pacific, but our research suggests

processing. This is accomplished by leveraging technologies such that the time for super apps may finally be at hand in other markets,

as APIs to implement solutions, including payment solutions, that too. ➔

66 Payment Methods Report 2023 | Latest Updates in Payment Habits

 Two of the largest super apps in the Asian market are India’s Features that would encourage consumers to
PhonePe and Paytm, which feature a broad range of services adopt super apps
in addition to payment options. PhonePe gives users access to

financial products including insurance, equity trading, and the ability

to buy gold through the app, while Paytm enables users to buy

flights, pay for train tickets, and make cinema bookings through

the app. Paytm already has 300 million users in India and aims to

deliver financial inclusion to 500 million consumers, in a country

where 13% of the adult population is unbanked.

Our survey showed that banks are well positioned to capitalise on

Our research found that there is a growing segment of consumers consumer trust to offer super apps. Among respondents, 43% said

ready to embrace apps that offer full visibility of payments, together they trust that their bank’s app is secure and would happily use it

with disparate financial products like savings, cashback, rewards, for as many everyday life activities as possible.

investments, and wealth management.

An example of a bank-owned super-app is Avo from Nedbank in

While one common desire for payment options is for them to be South Africa, an app that aggregates goods and services from

simple, fast, convenient, secure, and easy to understand, not all a variety of providers. The app started out as a platform to buy

consumers seek the same journey. Our research also found that groceries, order a meal, or access services like plumbing. It has

56% of users want the convenience of a single app for all payments, since expanded into offerings such as Avo Auto – an end-to-end

and 60% want a single app which tracks payments from multiple virtual vehicle mall. Avo has grown to 1.5 million users and 21,000

payment providers, giving them greater transparency and control. merchants since it was launched in 2020.

Meanwhile, we are seeing players as disparate as PayPal, Revolut,

and even X (formerly Twitter) move towards becoming super apps.

With customer behaviour evolving at a rapid pace and new com­

petitors appearing as quickly to meet any emerging needs that

banks are unable to address, it remains to be seen whether banks

will keep pace with consumer needs sufficiently to ultimately win

Others are interested in apps that combine financial and lifestyle the super app race.

options in one place. From the consumer’s perspective, the ease of

transacting is the most important feature in a super app, followed

by control and convenience. Many consumers value having trans­

parency of their purchases and the ability to consolidate shopping

and reward programmes in a single app. There will be nuances in the

drivers for super app adoption between different customer segments

and markets, as shown in the below table.

Accenture is a leading global professional services company that helps the world’s leading
businesses, governments and other organisations build their digital core, optimise their
operations, accelerate revenue growth and enhance citizen services – creating tangible
value at speed and scale. We are a talent and innovation led company with 732,000 people
serving clients in more than 120 countries.
accenture.com

67 Payment Methods Report 2023 | Latest Updates in Payment Habits

 Unlimit
Irene Skrynova, Chief Customer Officer at Unlimit, discusses the culture of influencers and how they shape the future of digital

payments for two generations – millennials and Gen Z.

Irene Skrynova is the Chief Customer Officer at Unlimit, where she manages client interactions,
from lead generation to portfolio. She began her career in finance developing white-label trading
platforms and cryptocurrency projects, and she possesses a wealth of experience in international
PR and marketing roles that has seen her work with a wide variety of businesses, from startups
to scale-ups and traditional players. Irene is an expert in trading platforms, payment solutions,
cryptocurrencies, ecommerce, and customer experience.

Irene Skrynova Chief Customer Officer Unlimit

Can you describe the influencers culture that has At the same time, few things are as important to individuals as their

rapidly grown globally in the past five years and its finances, so people are interested in which company or brand is

importance to the payments ecosystem? the most transparent and which one provides the best services and

Anyone could argue that influencers reshaped marketing over delivers the best solutions.

the past decade. The culture itself has risen rapidly to become

a powerful marketing resource, and during that time, influencers Recent studies revealed that 28% of Gen Z
themselves have evolved. In the beginning, a lot of the recognition and around 25% of millennials follow influencers’
for influencers came from the brands they were associated with – accounts on social media. What are the main
the bigger the brand, the greater the exposure – but that has trends in the digital payments industry that
changed in the last few years, and now influencers themselves are influencers are prone to pick and make popular for
becoming brands. merchants or marketplaces?
One of the biggest trends, particularly in the last few years, can

be seen in digital currencies. Today, people want to exchange

Millennials and Gen Z currencies quickly and easily, and they also require smooth on-

don’t mind spending more and off-ramps when it comes to switching between traditional

currencies and crypto.

on experiences they consider
unique, authentic, or both, and What’s important for millennials and Gen Z is offering intuitive,

we are seeing the impact of easy-to-use solutions that allow them to spend in the currency of

their choice, wherever and whenever they want. This is reflected in

this perspective play out across
the things influencers pinpoint the most. ➔
various markets.

Influencer marketing is as important in finance as in other sectors

such as food, health, and fashion. What makes it so powerful is that

it resonates – we want to hear about the best places to eat or who

makes the most fashionable, sustainable clothes because they are

relevant in our daily lives.

68 Payment Methods Report 2023 | Latest Updates in Payment Habits

 What about gig economy? How were the payment Over half of Gen Z are considered frequent travellers — with the

habits influenced by the gig economy in the post- majority considering travel a financial priority and more important

pandemic years, and, most importantly, what role than other expensive purchases. Thus, the industry is reshaping

did influencers play in the boom of this underground itself around its target audience. We see the knock-on effect of

economy sector? this in the payment services industry as more and more merchants

The gig economy cannot be described as an underground sector. demand solutions like ours that focus on facilitating borderless

If we take the US, for example, around 36% of the total workforce payments, whether that’s being able to access alternative payment

has participated, or currently participates, in the gig economy, with methods or receive international transfers.

it continuing to grow globally.

The influencer culture for financial services will continue to evolve in

Gig economy witnessed a boom during the COVID-19 pandemic, the direction of travel and towards a globalised payments ecosystem.

but participation levels by workers and consumers were high before

that. Platform work, such as ride-hailing and delivery services, is Finally, what is Unlimit’s approach to the shift in the
what truly gave rise to the gig economy, and payment solutions payments paradigm determined by the younger
have been critical to platforms since the beginning. Because these generations?
services are on-demand, businesses need to be able to take Our goal is simple: to open up financial borders. We want to help

in-app payments from customers and process payouts to workers every business, no matter how big or small, no matter where they are

immediately. located, to operate as easily internationally as they do locally. This

is the foundation of all our services and the focus of our solutions.

Traditional payment methods, such as checks, bank transfers, and

cash, are of little use. So, it is business-critical for platforms to have

advanced and streamlined digital solutions to initiate instant payments

and payouts – because without them there is no gig economy.

Looking into the future, how do you see the

influencers culture evolve, as more Gen Z are
attracted to the idea of a glamorous life on social
media? What will this mean for merchants and
payment providers worldwide who want to gain
more popularity in this age segment?
Millennials and Gen Z don’t mind spending more on experiences

they consider unique, authentic, or both, and we are seeing the

impact of this perspective play out across various markets, maybe

in travel more than any other.

Click here for the company profile

Unlimit is a global payments solutions provider that offers payment processing services,
including payment processing, Banking-as-a-Service (BaaS), and an on- and off-ramp fiat
solution for crypto, DeFi, and GameFi, among other things. The company’s mission is to
deliver solutions that eliminate financial borders and enable businesses to operate both
locally and internationally with ease across Europe, the UK, LATAM, APAC, and Africa.
unlimit.com

69 Payment Methods Report 2023 | Latest Updates in Payment Habits

 Nuvei
Laura Miller, Chief Revenue Officer and Global Head of Ecommerce at Nuvei, elaborates on the evolving role of payments in the

gig economy.

Laura Miller is a renowned name in the financial services industry, with nearly 25 years of
expertise in strategic planning, sales leadership, and business development within the payments
sector. Laura has held prominent positions at leading global financial institutions and prior to
joining Nuvei, she served as President of JPMorgan Merchant Services, overseeing the bank’s
commercial relationships with its largest global customers. Her tenure at American Express also
showcased her exceptional talent, where she played a pivotal role in driving sales growth and
client management in the commercial card segment.

Laura Miller Chief Revenue Officer and Global Head of Ecommerce Nuvei

The growth of the gig economy continues to be on the rise, but so That is because not all factors contributing to the rise of the gig

too are concerns about how a global economic downturn might economy are financially motivated. A preference for flexible working,

impact the financially excluded. The Paypers sat down with Nuvei’s especially for people who also look after dependents that might

CRO and Global Head of Ecommerce, Laura Miller, to find out more not be able to work otherwise, is an important driver. Platforms

about the future of the gig economy and what platforms should for freelance workers are also scaling internationally, enabling

consider when engaging their workforces. businesses to connect with talented professionals across the globe

in a way they couldn’t before – and with new frontiers of the gig

economy, such as the creator economy, already booming, there

The correct payments solution will be even more opportunities for people to join the gig economy

connects businesses to people workforce in the coming years.

wherever they are – and via every

It’s still not clear how the global economy will evolve, and at Nuvei
relevant payment method. we are not predicting any impact of an economic downturn. It is also

very difficult to make any informed predictions five years into the

future. But every trend we have identified indicates that the global

The gig economy spiked during the COVID-19 gig economy is going to continue to maintain its growth trajectory.

pandemic, reaching up to 1.1 billion workers

worldwide and over 55 million workers in the US What are the main challenges faced by the gig
alone. Given the current global turmoil and economic economy globally, and how can alternative payment
insecurities, how do you see the evolution of the gig methods serve the underbanked sector?
economy in the following five years? There is significant crossover between the gig economy workforce

The COVID-19 pandemic transformed the world of work for people and financially excluded populations – and financial exclusion is not

around the globe. Long-term consequences of the pandemic include an issue that is limited to the developing world. In the US, 4.5% of

greater remote working and flexible working, and we also saw a households don’t have access to a bank account – and this is

rapid rise in unemployment spark growth in the gig economy especially prevalent in low-income households. ➔

workforce. Additionally, while unemployment did subside in the

immediate aftermath of the crisis, the gig economy has continued

to thrive, with the industry expected to exceed USD 450 billion

in transaction volume by the end of 2023.

70 Payment Methods Report 2023 | Latest Updates in Payment Habits

 Any impact of the global economic downtown that results in further The correct payments solution connects businesses to people

growth of the global gig economy could contribute to this issue. For wherever they are – and via every relevant payment method.

example, in some regions, women are almost twice as likely to For international workforce platforms, that’s paying workers quickly,

be in insecure work positions than men, and, at the same time, safely – and, importantly, in the correct currency – via a payment

the gender financial inclusion gap is also growing. So, we are method they can access and trust. These could be direct payouts

likely to see more and more unbanked and underbanked workers to bank cards, prepaid cards, or digital wallets.

drawn to the sector.

For example, we recently announced a partnership with inDrive, the

For gig economy platforms looking to scale, engaging with this second largest mobility platform in the world, to support payouts to

workforce is not straightforward. drivers in Latin America, including payments to cards and all relevant

alternative payment methods in the Latin America region through a

• People want to be paid using the payment method they use to single integration. Nuvei’s collaboration with inDrive is particularly

spend money (issuing/prepaid cards would be popular). significant for the Latin American market, where businesses face

• Due to the makeup of the gig economy workforce, platforms need unique payment challenges, including lower card acceptance rates

to offer more payout methods than traditional workforces. and a significant unbanked population that relies on alternative

• People who are unbanked also might not have identification payment methods for financial inclusion.

documents or addresses (digital wallets where consumers can

sign-up directly with just an email address are popular).

• Fast and secure earned wage access is vital to the gig economy
workforce. This typically means gig economy platforms must

process irregular payins and payouts quickly, safely, and leveraging

the customer’s preferred payment methods. They need a specialist

payment provider competent in handling these requests.

Finally, what is Nuvei’s approach towards the gig

economy, and how important do you think this
is for creating a stable financial environment and
driving financial inclusion globally?
Our mission at Nuvei is always to enable our clients to connect

more closely to their customers through payments. We have over

two decades of experience and a rich technology stack supporting

payouts across a wide variety of ecommerce industries, including

enabling gig economy platforms to establish deeper relationships

with their workforces.

Click here for the company profile

Nuvei is the Canadian fintech company accelerating the business of clients around the
world. Nuvei’s modular, flexible and scalable technology allows leading companies to
accept next-gen payments, offer all payout options and benefit from card issuing, banking,
risk and fraud management services. Connecting businesses to their customers in more
than 200 markets, with local acquiring in 47+ markets, 150 currencies and more than 600
alternative payment methods, Nuvei provides the technology and insights for customers

nuvei.com and partners to succeed locally and globally with one integration.

71 Payment Methods Report 2023 | Latest Updates in Payment Habits

 Finance Incorporated Limited
Digital Payments for Greater Economic Fairness

Mina is the Chief Operating Officer at Finance Incorporated Limited (FIL). She leads the sales and
operations of the FIL’s multiple service offerings, ensuring smooth and efficient business operations,
as well as client satisfaction. She has been with FIL during its inception year where she immensely
contributed to the company’s evident growth and transition from a startup to a mid-sized company.

Mina Mitkova Chief Operating Officer Finance Incorporated Limited

There was a time when the latest innovations first left their impact a reality. In the European Union, SEPAInstant dictates a mere

on those in the highest socio-economic strata. The benefits then ten-second window for financial institutions to confirm or deny a

trickled down slowly. With digital transactions, this is not the case. transaction request – an affirmation that the customer’s needs are

Instant digital payments deliver value to practically anyone who has heard and answered.

access to a smartphone.
At Finance Incorporated Limited (FIL), we embrace this attitude and

The future of digital payments dictated by end-users have been preparing to ensure that we are fully aligned with the

As we move towards a world where digital payments encompass stringent requirements of SEPAInstant. However, there are several

most transactions, both infrastructure and regulation need to work challenges we face, even with a great in-house technical team, as

in tandem to support the volume and speed necessary for this ever- we aim to forge the robust technology that underpins this revolution.

expanding network to thrive. Compliance becomes second nature with automated sanction

screening and watchlist refusals, while intelligent systems ensure

As an industry, we are moving at the pace dictated by the end- a seamless flow of information, transcending the boundaries of

user, both consumers and corporates alike. Whether a person in SEPAInstant’s mandate.

the street or a business, the target is accessibility to payments

that are virtually instantaneous, efficient, secure, reliable, and at In this dynamic landscape of digital innovation, FIL stands firm in its

a reasonable cost. The financial services industry as a whole is commitment to embrace cutting-edge solutions. Alongside the realm

delivering on these demands, and this is thanks to the many players of traditional digital payments, FIL supports the future-forward world of

that are committed to providing the services needed. cryptocurrency. Recognising the transformative potential of blockchain

and decentralised finance, FIL is actively exploring avenues to integrate

Globally, the winds of change blow in favour of the e-wallet, a digital and facilitate crypto payments within its offerings.

haven for payments, along with the surging popularity of debit and

credit cards, and the burgeoning appetite for account-to-account In terms of digital payments, we reckon the world should be a

transactions. Another storm gathers momentum, fuelled by the place where all individuals, regardless of their socio-economic

rise of Buy Now, Pay Later (BNPL) services, demanding rapid background, can seamlessly participate in the new financial

processing of transactions. paradigm. Embracing crypto payments is one of the many ways

towards a more decentralised future, which can further enhance

Instant payment services on the rise digitalisation and drive financial inclusion. ➔

In this brave new landscape, two stalwart giants, SWIFT and SEPA,

stand tall, creating the networks that make near-instant payments

72 Payment Methods Report 2023 | Latest Updates in Payment Habits

 The benefits of developing in-house solutions
By embracing a client-centric approach, companies should base their

service delivery on client insights. Furthermore, they should consider

developing most of these needed technologies in-house so that their

platforms are tailored and based on client feedback and optimised

to match the realities of the current moment, just like we do at FIL.

These realities also include the desire for transaction costs to be

kept to a minimum. This is a requirement for economic fairness, as

companies activating in the payments industry shouldn’t be oblivious

to the situation of low-income earners working in highly developed

economies and sending money to their country of origin, for example.

These transactions, when based on the fast and technically efficient

systems that are being rolled out, will enable fairer costs than can be

provided by legacy systems.

The industry commitment for a higher digitalisation

rate
We are encouraged by the direction that much of the industry is

taking, and we endorse efforts by regulators, fintech companies,

technology platform suppliers, and the networks to provide speed,

efficiency, and low cost. We believe that, as an industry, we have a

social responsibility to extend our services with equanimity and in

a way that benefits as many people as possible.

We are also excited by the rapid development of technologies that,

over the foreseeable future, will further nourish intelligence within

the industry, which will generate speed and efficiency of transaction

monitoring and process a significant volume of payments. This

will continue to deliver even more functionality and increase rapid

access to accounts to those who need it most.

Embracing this transformation, FIL feels a sense of pride in their role

within the industry. Beyond profits and commerce, at FIL we see the

potential to shape a more equitable social landscape – a beacon

of hope shining brightly on the path towards economic fairness.

Click here for the company profile

Finance Incorporated Limited (FIL) is an Electronic Money Institution based in Malta,

delivering a full range of financial services and infrastructure solutions aimed at individuals,
corporates, and institutions. Licenced and regulated by the Malta Financial Services
Authority, FIL’s extensive and innovative payment solutions include e-accounts, payments,
card issuing, acquiring (ecommerce), and POS.
financeincorp.com

73 Payment Methods Report 2023 | Latest Updates in Payment Habits

 Riverty
We interviewed Teresa Schlichting and Bandan Jot Singh of Riverty about thriving in the evolving payment landscape and

pioneering seamless transactions in today’s fintech revolution.

Teresa has spent over 15 years pioneering transformative strategies across diverse industries. With
roots in the automotive and electronics sectors, she is currently driving Riverty’s transition from a
traditional financial service provider to a top-tier, human-centric fintech. Passionate about innovation,
Teresa ensures optimal financial experiences for clients across multiple European markets.

Teresa Schlichting Chief Strategy Officer Riverty

Bandan Jot Singh’s journey in financial services is vast and varied, touching Asia, and extending
to Europe. Having spearheaded projects for major tech players and banks, he is deeply versed in
alternate payment methods and consumer lending. At Riverty, he is currently leading the Payment
Business Unit, creating seamless merchant-consumer connections.

Bandan Jot Singh Business Unit Lead Riverty

In October 2022, Bertelsmann’s financial service the Riverty brand that includes debt collection, accounting, and

provider, formerly known as Arvato Financial payment products – ranging from direct debits to a spectrum of

Solutions/AfterPay, began its operations under the payment-after-delivery options like invoices or BNPL (such as

new brand name: Riverty. The Paypers is eager to pay-in-3 and instalments), and embedded finance. The financial

learn more about this rebranding. Can you shed needs, patterns, and concerns of consumers are our starting

light on the vision behind Riverty? point for innovation. We combine technology, data, and process

Teresa Schlichting: The rebranding of our company in October optimisation to create financial products that empower consumers

2022, along with several local brands, was a pivotal moment in our to live their best financial lives while fostering sustainable business

transformation journey. Apart from the name change from Arvato for our clients and ourselves.

Financial Solutions, it signified our evolution into a more integrated

fintech company, propelling our focus towards customer-centric Central to our strategy is our dedication to place consumers at the

and scalable products for the European markets. core of what we do, and the rebranding gave us a unique edge in

a competitive market. We have fully embraced this opportunity,

positioning Riverty as key player in an industry where many fintechs

Central to our strategy is our are seeking their footing.

dedication to place consumers at

the core of what we do, and the How does Riverty differentiate its solutions for
merchants and consumers?
rebranding gave us a unique edge Teresa Schlichting: Riverty operates across the B2B and B2C sectors,
in a competitive market. delivering innovative solutions to merchants and consumers.

For our merchants and business clients, our services go beyond

With the backing and investment from our parent company, risk-free payments and accounts receivable financing. We create

Bertelsmann, we consolidated a broad range of services under an optimised payment journey for their consumers – from a ➔

74 Payment Methods Report 2023 | Latest Updates in Payment Habits

 streamlined checkout to managing post-purchase payments, on favourable terms. This adds convenience and control.

returns, and diverse financing needs. We are a steadfast partner in For businesses, especially those of medium and large sizes, there

building and nurturing loyal consumer bases. If payment disruptions is a rising demand for payment solutions that resonate with their

occur, our in-house collection team steps in, handling issues with brand identity and customer communication. Embracing a partner-

the utmost care and responsibility offering merchants a competitive centric mindset and adaptable payment modalities cater to this

advantage. Unlike many of our competitors, we are also dedicated need, granting them a competitive edge.

to responsibly sharing our insights and helping our clients tackle

strategic challenges, be it business expansion or digital transaction Moreover, the focus on flexible payment terms and responsible

flow optimisation. in-house debt collection not only caters to consumer interests

but also supports merchant loyalty goals. This approach creates a

On the consumer side, we are committed to protecting them from win-win situation in a market where flexibility and personalisation

overspending. Using algorithms, machine learning, and individual are increasingly valued. It is part of a strategic shift towards creating

assessments, we determine an affordable spending threshold for more sustainable and fair payment experiences, cultivating value

each consumer, ensuring transparency and fairness. Our efforts also for both parties involved.

extend to promoting financial literacy and health, with a focus on

pioneering consumer communications and comprehensive financial With the introduction of the Consumer Credit
management tools. Directive 2 (CCD2) and its potential to reshape
the payments landscape, how is Riverty preparing
In essence, Riverty focuses on creating products that centre for these changes? What are your views on this
around the ecosystems of our clients and consumers. Our services regulation, given your aim to emphasise human-
seamlessly mesh, bringing forth innovative, responsible, and centric financial solutions?
compassionate solutions. Whether addressing a consumer’s wish Bandan Jot Singh: The upcoming CCD2 regulation marks a

for flexible payment options or a merchant’s complete financial crucial advancement in the payments industry, concentrating on

service needs, we are here to provide tailored support. essential aspects such as consumer affordability, transparency,

encouragement for timely payment, and fair overdue payment plans.

Given the current global economic climate, flexible Riverty is actively engaged in understanding these alterations and

payment options have surged in demand. How can liaising with authorities to offer insights and recommend practices

merchants capitalise on this trend? in line with industry fairness and sustainability.

Bandan Jot Singh: The payments landscape is shifting to address

the entire customer lifecycle rather than just the checkout process. Instead of viewing the CCD2 regulation as a restriction, we see it

For example, embedded payments that align with the ecosystem’s as an opportunity to steer the industry towards a more responsible

purchasing experience can significantly enhance customer loyalty and sustainable direction. This aligns with Riverty’s longstanding

for brands. By integrating tailored payment conditions, deferred strategy. It resonates with our values and symbolises our belief in

payment choices, and embedded financing, merchants can amplify offering flexible, fair payments and financial services.

their customer lifetime value.

A key feature is consolidated invoicing, allowing consumers

Click here for the company profile
to combine purchases across product categories, settling them

Riverty is a leading fintech company with a presence in 13 countries. Specialised

in transparent payment methods tailored for consumers, Riverty offers merchants a
comprehensive toolkit, from BNPL schemes to smart accounting and debt collection,
enhancing the financial journey for all stakeholders.
riverty.com

75 Payment Methods Report 2023 | Latest Updates in Payment Habits

 Payments Canada
Driving Forward Digital Payments in Canada

Stephen Yun is Senior Analyst, Market Insights, at Payments Canada. His areas of focus include the
Consumer Payment Methods and Trends report, the Payment Behaviour Tracker studies, and how
these research insights can be leveraged to drive business action for his business partners.

Stephen Yun Senior Analyst of Research Payments Canada

Over the last five years, the payment industry has seen an acceleration This is likely because consumers are embracing this emerging

of digital payment usage among consumers and businesses, especially digital payment method. 48% of BNPL users in Canada reported a

due to the impact of the COVID-19 pandemic. Canadians are more surge in their usage in 2022. Similarly, 59% of cryptocurrency users

comfortable using digital payments on an everyday basis – and are and 53% of contactless smartphone mobile wallet users increased

embracing innovations that make their payment experiences more their usage of these payment methods respectively. Businesses are

frictionless. embracing mobile wallet payments for their customers because they

are secure (22%), more convenient (20%), and increase customer

Although older Canadians (55 years and older) are less likely to satisfaction (20%).

be early adopters of emerging payment innovations compared to

younger (18-34 years) and middle-aged (34-54 years) Canadians, Adopting different digital payment methods for
the pandemic has driven tendencies to search for products and unique situations
services online. This has sparked higher engagement in digital Consumers understand the benefits of digital payments including

payment options across all generations. speed, security, ease of use, and low cost. For these reasons, they

rely on a range of digital payments depending on their needs and

Each year, Payments Canada provides an overview of the payment unique payment situations.

trends observed in Canada through the publication of the Canadian

Payment Methods and Trends report. This year’s report, available on Online transfers are the fastest-growing payment type in Canada,

payments.ca in October 2023, reveals key themes around the growth with year-over-year volume growth of 11% and value growth of 19%

and preferences regarding digital payment options, in addition to from 2021 to 2022. These include online e-wallet and electronic

insights into consumers’ expectations for the future. person-to-person (P2P) transactions initiated through online services

and providers that are prepaid or linked to deposit accounts at

Growth of digital payment options financial institutions. Interac e-Transfer dominates the online transfer

To keep pace with shifting consumer demands, businesses have payment segment and is most often used for peer-to-peer (P2P)

begun to offer new payment options and features. The Canadian payments, such as repaying someone (43%) or sending a gift (36%).

Payment Methods and Trends report revealed that 23% of businesses ➔

offered Buy Now, Pay Later (BNPL) as a payment option to their

customers in 2022. While this accounts for less than a quarter of

businesses, the appetite to implement BNPL is growing. Over half

(55%) of businesses that weren’t yet offering BNPL indicated that

they plan to do so within the next twelve months.

76 Payment Methods Report 2023 | Latest Updates in Payment Habits

 In comparison, other forms of digital payments, including Electronic To support the future of digital payments, the development of Canada’s

Funds Transfer (EFT), were mainly used for work payments (35%) or first national real-time payment system, Real-Time Rail (RTR), is

recurring bill payments, such as utilities (44%) and insurance (41%). underway. RTR will support data-rich payments, while serving as

Electronic funds transfers include transactions carried out through a a platform for innovation and competition in the marketplace. This

bank account held at a Canadian financial institution, such as direct new payment system will enable Canadians to initiate and receive

deposits, electronic remittances, pre-authorised debits, and other irrevocable payments between accounts at different financial

online bill payment transactions. institutions within seconds, day and night, 365 days a year.

As emerging digital payment alternatives are established, consumers’ Innovation is integral to ensuring Canada’s payment infrastructure

payment preferences will continue to evolve. It could mean that they meets the needs of Canadians and remains competitive on the global

swap out one payment method for another or that their overall range stage. Payments Canada is seeking updates to Canada’s payment

of preferred payment choices expands. legislation to expand Payments Canada’s membership eligibility to

include a broader swath of payment players who meet the necessary

An example is mobile payments, and the top use cases include bill requirements. Innovation is critical to remaining globally competitive,

payments (39%), online payments (33%), and P2P payments (31%). but it’s immaterial without safety and soundness. Broadening access

However, more Canadians are beginning to use payment apps on in a safe and sound manner will foster competition and innovation,

their mobile devices for point-of-sale purchases, such as at a coffee while helping to ensure that the future of digital payments, which

shop. Canadians are increasingly turning to, happens within – not outside –

Canada’s regulatory framework.

Fuelling safe innovation through competition and

broader access
As Canadians’ expectations and behaviours evolve, planning and

anticipating their payment needs becomes increasingly important.

For example, 65% of Canadians would send their payments in real

time if the option was available. The top three use cases for sending

payments in real time are paying a credit card bill, government taxes,

and rent, all where the speed of the payment is critical, especially to

avoid late penalties.

Payments Canada is a public purpose organisation that owns and operates Canada’s
payment systems, Lynx, and the Automated Clearing Settlement System. In 2022,
Payments Canada’s systems cleared and settled over CAD 119 trillion or CAD 476 billion
every business day. Payments Canada is leading Canada’s journey to introduce modern
payment options that are more resilient, inclusive, and enable fair competition as the

payments.ca foundation for a thriving economy.

77 Payment Methods Report 2023 | Latest Updates in Payment Habits

Innovation in Payments Technology

• New use cases for biometric payments

• Building a compelling payments proposition for SaaS players
• The opportunities to use software platforms as a new SMB route to market
 Payments Consulting Network
Innovation in Payment Technology: New Use Cases for Biometric Payments

David boasts over 30 years in consumer payments, covering strategy, marketing, products, loyalty,
operations, and finance. He leads NYPAY.org, is a partner at PayGility Advisors, and participates in
the US Payments Forum and Faster Payments Council. David advises fintech startups specialising in
core banking, compliance, and payments for high-risk businesses.

David True Commercial Director, New York Payments Consulting Network

Biometrics for payments: how did we get here? Let’s start with some swipe of your hand over a sensor – is all it takes for authentication.

fundamentals. Before any transaction can take place, there has to Perfect simplicity and convenience.

be certainty about the party requesting the transaction. Are you who

you say you are, and are you real? Combine this with contactless payments, and you have something

very powerful with a multitude of use cases.

Any method to do this must be secure – the risk of fraud never goes

away, but we have to minimise it as best as we can. Additionally, it A primary use case is enhancing the security of online transactions.

should not be too hard to use: an overly complicated method won’t get In an era when online shopping and digital banking have become

used or won’t get used correctly. Think of the ubiquitous usernames the norm, the need for secure authentication methods has never

and passwords; we all know that longer and more complicated been greater. Biometric payments offer a seamless and secure way

passwords are better, but how many of us actually use them? for consumers to verify their identity, reducing the risk of unauthorised

Securing transactions is a balancing act of finding a method that access and identity theft.

provides strong security but will also be widely adopted.

Another burgeoning use case is in-store payments at brick-and-

In comes biometrics: using inherent features like your iris, fingerprint, mortar retailers. For example, Amazon Go stores use computer

or face to authenticate you. There’s nothing to remember, nothing vision, sensors, and deep learning to enable a checkout-free

to create. No one-time password to look for, no additional device experience. Customers simply walk in, scan their Amazon app, and

to carry. There’s just the uniqueness of you. are authenticated via their face or palm. Their items are automatically

detected and charged to their Amazon account when they walk out –

And that uniqueness translates into enhanced security. Traditional and Amazon recently announced that paying by palm is coming to

authentication methods, such as PINs and passwords, have proven all their Whole Foods grocery stores in the US. This provides a

susceptible to breaches, phishing, and hacking attempts. In contrast, frictionless in-store payment experience.

biometric data is highly individualised and nearly impossible to replicate,

making it a robust defence against fraud. By utilising biometric markers Payment cards, too, are getting into the game, with embedded

like fingerprints or facial recognition, payment systems can ensure biometric sensors that eliminate the need for PIN codes. These cards

that only authorised individuals can access their accounts and make enhance security by incorporating fingerprint scanning for authen­

transactions. tication. This improves security over chip and PIN cards, all while

delivering a seamless and convenient experience for users.

Biometrics provides an elegant solution to the complexity question. Companies like Mastercard have solutions of this kind in the

You don’t need passwords or new devices (other than a mobile phone, market today. ➔

which you already have), and a simple gesture – like a glance or a

79 Payment Methods Report 2023 | Innovation in Payments Technology

 ATM transactions: Iris scan technology is being incorporated Micropayments: Biometric authentication could revolutionise the

into ATMs to enable cardless withdrawals. The iris scanner provides way we handle micropayments. This technology allows consumers

a more reliable way to identify the customer than PIN codes or to quickly pay small amounts (less than USD 1) for digital services

signatures. This improves ATM security and enables faster cardless or content, eliminating the need for lengthy authorisation processes.

transactions.

Vending machines: Machine manufacturers are exploring incor­

Cross-border remittances: Biometric authentication could help porating biometric scanners to allow consumers to make cashless

enable faster, cheaper cross-border money transfers. Imagine purchases from vending machines with a simple fingerprint or iris

biometric remittance solutions that allow immigrants to securely scan, bypassing the need for physical currency or cards. This aligns

send money home using iris authentication instead of cards or with the demands of modern consumers.

bank accounts.

Charitable donations: Nonprofits are increasingly considering the

In the cryptocurrency world, currency exchanges and wallets adoption of biometric enrolment at events as a means to streamline

could integrate biometrics like fingerprint or face scanning as part the donation process. Donors could use biometric enrolment at

of the onboarding and transaction process for higher security. events to quickly make touchless donations using their fingerprint

This improves protection against fraudulent transfers or hacking or face scan.

of crypto assets.

Indeed, the potential of biometric payments is vast, offering a trifecta

Access control: Biometric payment technologies facilitate access of security, convenience, and versatile applications. Does this rose

control applications like paying for transportation. Imagine an iris have thorns? Of course. The privacy concerns, which are pervasive in

scan seamlessly linked to a prepaid transit account, granting you the digital realm, are similarly relevant in this context, and over time,

effortless, cardless access to subways and buses: you wouldn’t we will come to generally accepted means of addressing them. This

even need to pull out your phone. Similar solutions can be used for ongoing dialogue is crucial in shaping a future where biometrics can

managing access to buildings and stadiums. flourish as a trusted payment method.

Financial inclusion: Traditional banking systems often require As the saying goes, ‘Seeing is believing’ – and while a recent

individuals to provide extensive documentation and maintain a study found that most Americans are still not comfortable with

physical presence, which can be challenging for those in remote or biometric payments, once people experience the convenience

underserved regions. Biometric payments, coupled with verifiable of such payments, they become converts. And, at least in this

credentials, can help bridge this gap by enabling individuals to writer’s opinion, it’s that very convenience that will drive widespread

access financial services using their unique biometric markers. adoption of biometric payment methods, revolutionising the way we

transact and enhancing the overall payment experience.

P2P payments: Person-to-person (P2P) payment apps like Venmo

could adopt biometric logins rather than usernames and passwords.

This would allow users to quickly authenticate and securely send

money to friends or split bills.

Payments Consulting Network provides advisory and market research services to the
financial services and payments sectors and has a presence in Asia-Pacific, North America,
Europe, Africa, and Latin America. The firm also supports organisations in the retail,
hospitality, tourism, and not-for-profit sectors lower the cost of payments acceptance and
optimise customer experience.
paymentsconsulting.com

80 Payment Methods Report 2023 | Innovation in Payments Technology

 PSE Consulting
Filling In the Gaps – Building a More Compelling Payments Proposition for SaaS/ISV
Players in Europe

Chris Jones, of PSE Consulting, explores innovation sources in payments. With 15+ years leading
projects across the payments landscape, he excels in customer propositions, market entry, and
enterprise value. Chris now leverages his expertise in aiding payments infrastructure providers to offer
fresh insights to global digital merchants.

Chris Jones Managing Director PSE Consulting

Selling acquiring services to SMBs has always been tricky. There Players such as Stripe and GoCardless have understood this

are many onboarding costs while the revenues remain modest, interest and have carved out relationships with 40-60% of those

making payback periods lengthy. Traditionally, banks have reduced we interviewed. These technology-first players have done a

these costs by using their branch network, while non-banks used fantastic job at recognising the paramount importance of their

specialist sales organisations to knock on every door and every core payments product. According to our research, the most crucial

floor. More recently, PayFacs and tech-first acquirers have moved factor when selecting a SaaS player’s current payment partner was

to digital self-boarding, but the cost of customer acquisition issue their payment processing functionality, with ease of integration and

remains. ease of operational processes (e.g., onboarding) coming in a close

second and third.

In recent years, there has been an increased focus on the oppor­

tunities to use software platforms as a new SMB route to market. This points to the first gap in the UK and European markets. Many of

In the US, this model has been highly successful with acquirers the more traditional players do not have a gateway of sufficient

using this channel growing at five to seven times faster than the quality to attract SaaS partners. Given the product-first focus of the

wider market, according to Credit Suisse’s recent coverage of this software developer community, many major players need to invest

segment. In Europe and the UK, however, getting these Software-as- significantly in their core gateway offering as well as the associated

a-Service (SaaS – sometimes known as ISV) providers to become a documentation and support environment.

sales channel for payments has been tricky. In this article, we draw

on recent PSE research with the software community that targets The second gap is related to the level of commercial returns. Despite

SMBs to identify the gaps in the market and how acquirers can up this level of interest, almost two-thirds of SaaS companies only have

their game. a technical integration with their payments partners. In this case, the

SaaS player has a technical plug in for their payment partner, but

z regards payments as a significant part of their merchant no revenue share or sales incentives. This is even though 60% of

proposition. These SaaS providers also believe that up to 75% of those that we interviewed regarded the commercial terms of a deal

their customer base could take an integrated payments offering. as a key factor when selecting a payments partner. ➔

The SaaS world understands the value of delivering an integrated

payments offer – and has seen the success of US players such

as Toast, Lightspeed, and Shopify in driving payments revenues.

82 Payment Methods Report 2023 | Innovation in Payments Technology

 For those that have a revenue generating commercial relationship In conclusion, acquirers need to lead with a great product, supported

with an acquirer, most are disappointed with the outcomes from by an attractive commercial model, which can be articulated through

the partnership. Some highlight the benefits of getting referrals a variety of digital channels. To varying degrees, all European acquirers

from their payments partners, but most regard the financial returns need to improve in these three areas and, in doing so, will meet the

as unattractive. For those who have not established a partnership, needs of the SaaS community more effectively. As bank branches

commercial concerns are the number one reason for not extending close, and the digital world gets more crowded, being successful at

their current technical relationships. exploiting these new software distribution channels is likely to make

the difference between medium term success and failure in acquiring.

This lack of a compelling commercial offering applies to all players.

Acquirers need to provide an easier way to set up and manage

these commercial relationships without the need for custom code,

minimum referral levels, or complex compliance and revenue share

models. The acquiring market has plenty of experience in dealing

with third-party distribution channels, so it needs to create a more

compelling commercial proposition for this community.

The third gap is one of communication. There are lots of software

companies across Europe (Credit Suisse estimate about 14,000) so

using digital channels to engage this group is as important as for

the SMBs themselves. When asked how they selected their partner,

most SaaS players admit that it is through their own research of

supplier websites and feedback from the wider developer community.

They are not waiting for a business development manager to call and

pitch the partnership, or run an RFP, but are proactively researching

the digital offerings of players themselves.

This area of DevEx is of vital importance if acquirers want to reach

out to this group. Payment providers’ websites need to include

great develop documentation, test environment, easy to use FAQs,

relevant case studies, and more. More traditional players also need

to learn from the tech-first firms which actively engage with the

wider developer community, such as GitHub. Many of the global

payment providers who operate in the UK do not have localised

content – and many do not maintain relevant content for the SaaS

community who targets SMBs.

PSE Consulting, based in London, is a top European payments consultancy. It provides

expert guidance to schemes, processors, gateways, issuers, acquirers, private equity,
and merchants. PSE is renowned for shaping European payments innovation, focusing on
clients’ customer needs, buying journeys, and impartial, commission-free counsel without
hardware or software services.
pseconsulting.com

83 Payment Methods Report 2023 | Innovation in Payments Technology

Checkout Optimisation and Payment
Integration: Improving Conversion
Checkout Optimisation: Improving
and Retention
Conversion andRates
Retention Rates

• The importance of customising the checkout process

• Payment optimisation strategies to boost acceptance rates
• The current payment acceptance landscape in ecommerce
• The merchants’ perspective on optimising the payments checkout
 FlexCharge
Philip McHugh, Executive Director at FlexCharge, shares his thoughts on the importance of a customised checkout process

providing customers with multiple payment methods to choose from.

Philip McHugh has been an industry leader in payments across Europe, Latin America, and the
US for the past 25 years. He was formerly CEO of Barclays Payments, President of TSYS Merchant
Solutions, and most recently CEO of Paysafe, listing the company on the NYSE in 2021. He invested in
FlexCharge and has taken on Executive Director duties, helping the company to accelerate its growth.

Philip McHugh Executive Director FlexCharge

As consumer behaviour continues to change in 2023 With 5 to 25% of online shopping transactions being
in terms of payment preferences, how important is it declined, what are some tactical tips merchants can
for merchants to provide flexibility and a wide array use to improve their checkout process and deliver a
of payment methods, including BNPL and local customer-friendly, frictionless experience?
payment methods? Across the US and Europe, we estimate that over USD 500 billion a

In ecommerce, the name of the game is converting shopping carts year in sales is lost to declined payments, in addition to millions of

into successful sales. Every day, companies are spending big lost customer relationships. Luckily, there are a series of available

money on marketing only to see their sales lost during the last mile strategies, and the first step is to know your data.

of the customer journey.

Worse, a declined payment can lead to over 80% abandonment of It is critical to understand
the merchant site altogether, meaning not only a lost transaction, decline codes, re-tries, and
but also a lost customer relationship. So, the economic impacts are
customer abandonment rates
big, and the solution to the problem is not simple. However, the first
step to success is to offer a choice. to properly size the economic
impact and upside potential
The more options you give customers, the more likely you will
to having a focused payment
create positive outcomes and better shopping cart conversions.

Card payments will remain the dominant choice in the US and most decline strategy.
European markets, digital wallets remain a popular option as well,

while real-time bank transfer options represent an effective and

rapidly growing alternative. It is critical to understand decline codes, re-tries, and customer

abandonment rates to properly size the economic impact and

In India and Brazil, local bank transfer solutions have seen explosive upside potential to having a focused payment decline strategy.

growth and market share gains. Alternately, BNPL offers have grown For a payment provider, this type of insight instantly re-positions

in popularity, especially in select verticals, and in some markets you from a processing supplier to a real partner helping a merchant

alternate card schemes are critical to success, while e-cash products grow their revenues. ➔

can help convert previous out of reach customers into new sales. The

best online merchants will have a very good sense of how to manage

choice with optimal customer user experiences.

85 Payment Methods Report 2023 | Checkout Optimisation: Improving Conversion and Retention Rates
 Beyond the basic data, the most sophisticated online merchants Finally, what’s in store for FlexCharge for the rest
use a mix of solutions. Tokenization and 3DS 2.0 can certainly of 2023?
help improve acceptance rates and reduce fraud. Additionally, Growth. We are rapidly signing up new partners every week and

there are multiple companies offering fraud check and chargeback growing our pipeline for both customer and merchant-initiated

management solutions, as well as a growing number of payment transaction types.

orchestration platforms allowing companies to re-route payments

to achieve improved outcomes. The results of the latter can be very To date, we have evaluated over USD 80 billion in transaction volume

positive although integrations tend to be more complex. and have signed up merchants across multiple sectors in the US

market, with plans to go live in Europe this summer.

During the checkout process, clients can face

various errors, which cause frustration and high cart
abandonment rates, leading to smaller revenues.
How is FlexCharge’s solution tackling this pain
point?
FlexCharge combines three elements to create a unique and impactful

option for merchants to materially reduce payment declines.

The first is our AcceptIQ platform, leveraging decades of deep

credit and data experience along with much broader information,

to create a real-time decision engine that instantly evaluates all

declined transactions including insufficient funds.

The second element is our Customer Promise ensuring that customers

get the product they want, using the payment type they choose,

within the limits they already have, and at no additional cost to them.

The third variable is our invoice purchasing solution that guarantees the

sale to the merchant and eliminates risks for them. The combination

of these three factors creates a truly embedded and frictionless

platform that tackles all decline codes, giving a merchant certainty

and a customer a truly positive outcome. We have seen cure rates of

over 30% for merchants that can lead to 10-15% increases in total

sales, lower overall cost of acquisition, and higher lifetime values per

customer.

Click here for the company profile

FlexCharge is an AI-driven platform that partners with merchants and payment providers
to instantly review and recover failed customer transactions at no risk to the merchant
and at no cost to the consumer. The platform offers the widest coverage and least friction
possible to a merchant. If FlexCharge believes a customer will pay, they take the risk and
pay the merchant – guaranteeing the transaction. The customer is subsequently charged at

flex-charge.com no additional cost. The company is based in the US with product and R&D in Israel.

86 Payment Methods Report 2023 | Checkout Optimisation: Improving Conversion and Retention Rates
 Redbridge Debt and Treasury Advisory
Payment Optimisation Strategies for Better Acceptance Rates

Gabriel Lucas has been providing strategic advice to international and multichannel merchants in
their payment transformation and optimisation journeys since 2020. He previously worked for four
years as Chief Operating Officer at TSI Payment, a France-based fintech specialised in alternative
payment methods.

Gabriel Lucas Associate Director Redbridge Debt and Treasury Advisory

With almost 15 years of experience in payments, Chaira joined Redbridge in 2022 to help bring the
payment practice to the next level. After a few years working as a payment consultant, she worked at
Visa for 10 years as Fraud Manager and Business Analyst.

Chaira Mekkaoui Associate Director Redbridge Debt and Treasury Advisory

The current payment acceptance landscape on the transaction, trigger SCA, run a manual review, or request an

ecommerce exemption (when applicable). The issuer then validates authentication

One of the main concerns for merchants operating in the growing and authorisation, followed by the capture. However, the payment

ecommerce space is how they can provide shoppers with the best journey is not always straightforward, and transactions do not always

customer experience to maximise revenues and customer retention. get approved, which is why each payment step must be assessed

This is particularly complex in the European Economic Area (EEA), in-depth.

where the Second Payment Services Directive (PSD2) introduced

strict requirements to fight against fraud, resulting in additional friction 1. Blocked transactions
for customers, especially if this process is not managed efficiently. Merchants must find the right balance between blocking suspicious

transactions as soon as possible to keep traffic clean and avoiding

Before we go any further, what does ‘acceptance rate’ refer to? refusing legitimate transactions (i.e., false declines). This requires

What seems to matter the most for merchants is how much new a payment fraud strategy which defines the right policies and

income they capture – therefore, the acceptance rate should be processes and implementing the most suited and advanced

calculated as the number of successful captures over the number of technology.

attempts. The events that occur after the capture (i.e., cancellations,

refunds, and chargebacks) must also be optimised. 2. Manual reviews

In some cases, merchants may consider having transactions reviewed

In this context, it is key for merchants to understand the payment by analysts; however, manual review is not always beneficial,

flow – whether it is customer-initiated transaction (CIT) or merchant- especially when non-risky transactions fall into this longer process

initiated transaction (MIT) – and how to optimise this process. or when the decision made by the analyst can be easily automated

with technology. The real value in having human analysts usually

Strategies to optimise acceptance rates comes from being able to contact the customer for additional checks,

When looking at CIT, every transaction typically starts with a risk otherwise most of the decisions can be automated. ➔

analysis, where merchants must decide whether they should block

87 Payment Methods Report 2023 | Checkout Optimisation: Improving Conversion and Retention Rates
 3. Authentication Other exemptions like ‘trusted beneficiaries’ and ‘delegated authen­

Merchants must decide whether SCA should be triggered or not, tication’ do not currently seem to be as developed, although some of

and whether an exemption should be requested when applicable. the most innovative acquirers have started to build solutions around

Triggering SCA in all transactions will most likely result in losing good this.

customers that encountered an issue during this process (something

very important that is commonly missed is the monitoring of drop- 4. Authorisation

offs during the SCA process, which some payment providers are not This step mostly depends on the issuer, but there are still various other

even able to track). On the other hand, not triggering SCA requires actions merchants can take to maximise acceptance rates – such as

proper fraud management to avoid future chargebacks, in which sending additional data in payment requests, being connected to

case the merchant would assume liability. different acquirers and routing transactions to the one more likely to

accept each transaction, or even working closer with issuers through

One of the most effective and relatively easy to implement solutions to third parties such as acquirers or specialised fintech.

improve acceptance rates is to propose digital wallets like Google Pay

or Apple Pay, as they benefit from a smooth authentication process. One of the latest trends when defining a multi-PSP strategy with

At the same time, launching a white-label wallet or private card could smart routing is to rely on a payment orchestration layer to delegate

prove an interesting alternative for merchants, as they are out of PSD2 the technical burden while benefiting from a no-code and user-

scope. friendly interface to set workflows.

Another important action merchants can take to optimise authenti­ 5. Capture

cation is to send a 3DS version that will more likely be accepted by The main reason a failed capture occurs is due to the capture being

each issuer. This implies monitoring issuers’ behaviours and relies delayed because the authorisation expired or got cancelled upon

on payment providers having the capability to automatically send customer request. This can also happen for reasons related to the

the most relevant version. merchant (i.e., product out of stock).

When it comes to the exemptions, the most used exemption is When it comes to MIT, in theory, it has a more straightforward process

‘low value payments’, as it only requires transactions to be below as SCA is only required in the first transaction. However, the main

EUR 30. The exemption that is currently being developed the most challenge merchants face is deciding when to process the transaction

is the ‘transaction risk analysis (TRA)’, which allows merchants to and how to manage declines. The most innovative technologies

obtain exemptions for transactions up to EUR 500, although the allow merchants to trigger MIT transactions during specific days

current best threshold is at EUR 250. when transactions are more likely to be accepted, followed by smart

retries in case of failure. Another way to maximise acceptance rates

This exemption is particularly complex as it requires acquirers to is network tokenization, as the token will remain available even if the

remain below certain fraud thresholds to be eligible, which results in card is lost, stolen, or expired.

acquirers further refining their onboarding policy and fraud strategy.

At the same time, some acquirers with full access to issuing data are

developing solutions that maximise exemptions – also applicable

to three-corner model payment methods.

Redbridge Debt and Treasury Advisory is a leading financial management partner

to corporations around the globe. It is committed to providing each client with all the
information required to make the best decisions and optimise their financial performance.
Redbridge’s teams are located in Houston, New York, Paris, Geneva, and London.
redbridgedta.com

88 Payment Methods Report 2023 | Checkout Optimisation: Improving Conversion and Retention Rates
 Payment Options
Whether You Need Orchestration or Not Depends on the ‘Music’ That You Want to Make

With over 25 years of experience in the payments industry, Masha is currently Principal Consultant
at Payment Options Ltd, NED at Trust Payments and a Board Advisor at Xander Pay, as well as
a recognised speaker and writer on the subject of payments, marketplaces, and new economies.
Masha previously held senior posts at Visa, Microsoft, Mastercard, CyberSource, and Ingenico.

Masha Cilliers Principal Consultant Payment Options

Over the past few years, the term ‘payment orchestration’ has slowly independent approach based on optimising each transaction for a

been gaining traction, however, not everyone is entirely sure of what specific merchant.

exactly that means:

• Is it an option to fully outsource your payment operations to the And then there is an orchestrator who serves as the merchant’s

‘one-stop-shop’ PSPs? one point of connection, while also establishing ties with various

• Or is it when you use an intermediary for smart routing your providers. That orchestrator will take on the PCI burden, as well as

payments to a number of payment providers? the maintenance of existing relationships and the creation of new

• How about the aggregation of a range of different local payment ones. That option is heavily reliant on the quality and breadth of

methods (LPMs), is that an orchestration service as well? the orchestrator’s technology, whilst adding to the overall cost of

• And does orchestration mean that the provider also aggregates each transaction.

the flow of funds, resulting in one flow to the merchants from a

myriad of payment methods? But what is the difference between orchestration and the traditional

gateway service? After all, these companies have been routing

Perhaps it is a mixture of all of the above, but the service can be transactions to different acquirers for over 20 years.

as wide as you can imagine it, or as narrow as you need it, it really

depends on the ‘music’ the merchant wants to make. The opinion of this article is that payment orchestration is an evolution

of payment routing, but only when the layer performing the routing

For example, many large merchants (from the retail and travel sector) is actually ‘smart’ – i.e., acting based on a set of sophisticated rules,

who have grown through acquisition have to manage a large number ideally dynamic, for the benefit of the merchant. Whether this software

of PSP, acquirer, and direct LPM connections. They end up building layer provider is able to collect the funds will depend on the breadth

their own ‘software layer’ to help route each transaction based on and the depth of the service. Often, the orchestrators are technology

certain criteria, often geographical – sometimes also optimising companies, not necessarily equipped with banking or payment

the routing on commercial grounds. However, this approach can licences, but if they are able to do full end-to-end reconciliation

rapidly get very complicated and costly when managing numerous down to the actual settlement amount, then, arguably, they are still

connections. providing end-to-end orchestration without collecting the funds. ➔

The opposite of the spectrum is the option of outsourcing to a ‘one-

stop-shop’ PSP to manage all payment and, in some cases, different

acquirer connections. However, these PSPs either have or plan to

have their own acquiring capabilities – and will be aiming to route

all or most of the traffic to their own systems rather than have an

89 Payment Methods Report 2023 | Checkout Optimisation: Improving Conversion and Retention Rates
 Now, merchants have to choose from a number of very different types Below are some suggested pros and cons for in-house versus

of setups – ranging from fully in-house to totally outsourced and Comexternal

paring oorchestrators:
w n o r c h e s t ra t i o n w i t h o u t s o u r c e d o r c h e s t ra t i o n
everywhere in between. The factors influencing the choice between

one option or another can differ significantly, and merchant size is not In-house Orchestration External Orchestrator

PROS CONS PROS CONS

always the reason behind the decision – i.e., some large merchants Full control over what A large technical effort Existing solution, plug Still need to integrate,
gets connected when to build orchestration and play especially if moving
happily manage things in-house and others gladly outsource to a layer from direct integration
No additional per Need to maintain the Broad range of Additional cost per each
full-stop-shop PSP. It’s all about the end result, the ‘music’! transaction cost once solution and to integrate connections to Acquires transaction
built new features (e.g. LPMs) and LPMs
Growth of use in Need to have full PCI No need for merchant to Depending on the
scheme tokens is DSS compliance to store have PCI compliant set number of acquirer and
making it potentially and manage card data up apart from self scheme connections
The criteria are often internal to the merchant (technology, internal easier to route between as each provider’s certification there will be a some or
providers tokens are different many limitations

expertise, growth plans) or geographical (no PSP can cover all

markets, so sometimes you just have to have a special setup for

one or another geography). An additional complexity arises when the merchant requires any
Outsourcing choice considerations ‘special’ services such as subscription management, shopping

Fully in house One stop shop PSP Using external

orchestrator
cart or reservation platform integration – or when the merchant is a
• Have a strong technology team and
agile systems
• Do not have a payment technology
team nor plans to build it
• Do not have a payment technology
team but may desire to build it at marketplace looking to stay out of the flow of funds for compliance
• Have payment expertise in-house • No payment expertise in house and some point in the immediate
or strong desire to build it no desire to build it future
• PCI compliant or striving to be or
ready to use scheme tokens
• Full PCI is out of scope
• Selling in multiple countries (where
• None or some payment expertise
in house but planning to grow it purposes. These requirements narrow the list of the orchestrators
(appreciating that they may not that PSP has existing • Want to be in control of own
offer 100% cover yet) connections/solutions) payment ‘destiny’
• Using or planning to use 1 to 3
acquirers and/or PSPs
• Payment method requirements are
met by the PSP’s current portfolio
• Full PCI in-house is currently out of
scope significantly.
• A finite number of payment or confirmed roadmap • Selling in multiple countries and
methods used and planned • Have great rapport and pricing growing (with some ‘difficult’
• Working in multiple (but not with the PSP and no desire to have payment markets)
excessive number) of markets an additional provider • Using a large and/or a growing
number of acquirers, PSPs and
LPMs

In summary, the emergence of orchestrators has provided merchants

with an increasing number of options. However, the choice between

one over the other should be based on the service (or the ‘music’)

Above are some considerations which are likely to affect a merchant’s that the merchant is after, rather than on industry trends.

choice as to whether to go in-house, with an orchestrator, or with a

one-stop-shop PSP route.

It is imperative to thoroughly evaluate the benefits and the short­

comings of each type of setup before making a decision, as once one

is implemented, it is difficult to reverse it and it may take years for a

merchant to change it. The orchestrator model is perhaps the most

supportive of transformation, especially if the fund flow is directed

to the merchant, so that the relationships with the acquirers and

payment methods are already in place.

Payment Options is an independent consultancy run and managed by Masha Cilliers.

Its key focus is helping merchants, marketplaces, banks and payment providers to fully
understand the online payments industry and each other, to build successful partnerships,
and to implement innovative strategies. Masha has been working with Acquirers, PSPs,
payment facilitators and orchestrators for over a two decades and has deep and practical
www.paymentoptions.ltd knowledge of the ecosystem.

90 Payment Methods Report 2023 | Checkout Optimisation: Improving Conversion and Retention Rates
The Merchants’ Perspective on
Optimising the Payments Checkout

• Fiverr
• Gameforge
• Kiwi.com
• OnBuy
• Vestiaire Collective
 Fiverr
Optimising the Payments Checkout – Best Practices from Fiverr

By diversifying payment options, platforms can cater to a

broader audience, expanding their user base and, ultimately,

Shany Malbin
increasing revenue streams. A smoother payments checkout
VP Payments Strategy process improves acceptance rates and fosters user loyalty
Fiverr and trust.

From your perspective, how will Gen Z and

millennials help shape the future of online
payments?
The advent of Gen Z and millennials into the digital landscape

has already begun to redefine the payments ecosystem.

These tech-savvy generations prioritise convenience, speed,

What are the best practices when implementing and flexibility. Their affinity for digital wallets, peer-to-peer (P2P)

new payment methods and optimising the checkout platforms, and contactless payments is driving innovation in

experience (UX/UI perspective)? the payments industry. I believe the future of payments lies in

As the Vice President of Payments Strategy for the global freelance personalised solutions.

platform Fiverr, my role has provided me with unique insights

into payment methods and their critical interplay with the user Gen Z and millennials demand tailored experiences that cater

experience (UX) and user interface (UI). When introducing new to their unique needs and preferences. AI-driven algorithms

payment methods and enhancing the payments checkout process, can analyse spending patterns and suggest relevant payment

making sure the user’s experience is seamless is of utmost methods, further enhancing user satisfaction. Moreover, the

importance. This is why, at Fiverr, we are focused on designing and blurring lines between social interactions and financial transa­

maintaining an intuitive UI that guides users through a frictionless ctions are inspiring the integration of payments within social

payment journey. media platforms, creating new avenues for seamless transactions.

Adopting a minimalistic design approach, with clear calls-to-action, A significant part of my role as VP of Payments Strategy for

well-placed progress indicators, and relevant payment options Fiverr is to ensure that we are always looking towards the future.

ensures a streamlined and efficient checkout process. We want to embrace innovation in the payments landscape.

However, implementing new payment methods and optimising

We are also focused on personalisation. We curate payment methods the payments checkout process requires a delicate balance

based on user preferences and previous behaviours – increasing between functionality, security, and user experience.

user satisfaction and trust. We also localise, offering the relevant

local payment method and currency. Despite challenges, the benefits of embracing these changes

are substantial, from expanded user bases to increased loyalty.

What are the main challenges and benefits of doing As Gen Z and millennials continue to exert their influence,

so? the payments industry will witness a paradigm shift towards

Introducing new payment methods and UX/UI enhancements is not personalised, intuitive, and technologically-advanced solutions.

without challenges. Integration complexities, security concerns, and The future of payments is an exciting journey into uncharted

the need for robust compliance measures can present obstacles. territory, driven by the aspirations and expectations of the

However, overcoming these challenges yields numerous benefits. digital-native generations.

92 Payment Methods Report 2023 | Checkout Optimisation: Improving Conversion and Retention Rates
 Gameforge
Optimising the Payments Checkout – Best Practices from Gameforge

optimal customer satisfaction through convenience and trust

represents the core goal. This drives higher conversion rates and
Andreas Schulze
reduces abandoned payments. However, careful consideration
Director of Payments is essential due to associated challenges. Selecting a suitable
Gameforge payment service provider (PSP) is a foundational step. Defining

key requirements, approved by stakeholders, and implementing

a flexible vendor selection and onboarding process are crucial.

In addition, introducing new payment methods necessitates

diligent research into their relevance for target customers

and markets. Post-launch evaluation to see whether these

methods attract new customers or prompt shifts within the

existing base is vital, particularly if higher payment fees are

What are the best practices when implementing incurred by the merchant. Integrating third-party payment

new payment methods and optimising the checkout logic requires meticulous planning. API integration maintains

experience (UX/UI perspective)? merchant page aesthetics but comes with implementation

When providing payment options, avoid overwhelming users by costs, including PCI DSS compliance. Collaboration with the

including only relevant methods for your target customers and PSP is key for efficient A/B testing, customer satisfaction, and,

their market. Display the most popular methods prominently. overall, payment performance monitoring. The efficiency of A/B

When integrating new payment methods and optimising the payment testing and payment performance data depends on a robust

checkout from a UX/UI perspective, prioritise simplicity and clarity analytics and reporting framework. Adhering to data protection

throughout the checkout process. Reduce friction by minimising laws adds further complexity. Finally, sustained focus on the

steps, avoiding visual disruptions, and incorporating auto-fill and cost-benefit ratio of measures that tie up resources is crucial.

correction features. Limit the fields required for payment completion Transparent forecasting, quality assessment, and incorporation

and eliminate conversion deterrents like distracting links or banners. of findings into subsequent forecasts ensure increasingly high-

It is also very important to ensure seamless cross-device compatibility, quality forecasts.

particularly as mobile transactions surge. The checkout process

should function smoothly on various devices, particularly concerning From your perspective, how will Gen Z and millen­
omnichannel payments. You should also consider establishing robust nials help shape the future of online payments?
security measures and displaying trust badges such as Visa Secure Gen Z and millennials play a significant role in shaping the future

to foster user confidence. Finally, continuously monitor and analyse of payments. With their tech-savvy and digital-first mindset, they

user behaviour to identify pain points and areas for improvement. will drive the adoption of digital wallets, contactless payments,

Regularly refine the checkout process based on A/B testing, user BNPL, and digital currencies. They are more open to exploring

feedback, and data analysis, encompassing both frontend and new technologies like blockchain, microchip implants, payment

backend processes. This iterative approach enhances the overall wearables, and biometric authentication, which will reshape

payment experience. the digital payments landscape. Additionally, their emphasis on

convenience and sustainability may lead to the development

What are the main challenges and benefits of doing so? of more user-friendly and even eco-conscious payment

Optimising customer satisfaction and payment efficiency demands ecosystems. As these generations gain economic influence due

adherence to best practices while navigating challenges. A strategic to their sheer demographic size, their preferences and demands

approach, including meticulous planning, collaboration, and prudent will guide the payment industry towards enhanced convenience

resource allocation, underpins success in this endeavour. Achieving and efficiency.

93 Payment Methods Report 2023 | Checkout Optimisation: Improving Conversion and Retention Rates
 Kiwi.com
Optimising the Payments Checkout – Best Practices from Kiwi.com

overwhelming selection and payment process. Ultimately, they

will abandon the checkout page, and merchants will lose revenue
Natália Ekl
from their sale.
FinTech Lead

Kiwi.com What are the main challenges and benefits of

doing so?
Post-integration monitoring is the final and most important phase.

Here, we should monitor the adoption of the payment method,

cannibalisation compared to other methods, and the overall

success of the implementation. It is particularly useful for future

business planning and calculating ROIs to see if we measure it

correctly or if our predictability is accurate enough. The customer

What are the best practices when implementing journey from the initial product search to the final payment step

new payment methods and optimising the checkout must be as easy as possible in today’s ecommerce era.

experience (UX/UI perspective)?

We are currently in a phase where we are integrating new payment From your perspective, how will Gen Z and
methods and building our overall future payment portfolio. Kiwi.com millennials help shape the future of online
is a global travel tech player selling more than 70,000 seats daily, payments?
and we strive to offer the best service to our customers along with The younger generation is propelling us forward. In the world

their preferred payment methods. The most important aspects of the of payments, this means innovation, innovation, and more

entire process of integrating a new payment method are preparation, innovation! Everything must be fast, flawless, simple, and

testing, and monitoring. If you are considering a payment method incredibly user-friendly. Millennials and Gen Z assist merchants

that enjoys overall popularity, always take into account the basis in realising that offering payments only through cards would be

of the data behind its rankings – whether it is success, popularity, backward. As a result, we have heavily integrated new payment

or adoption. Consider the benchmarks used, the target markets, types into ecommerce. This trend will continue in the coming

business products, and companies. What works for online travel years as innovation and technology move in proportion to the

agencies or airlines may not work for retail, as every industry is demands of young people, as a response to buyers’ requests.

different when it comes to payments. This can often be deceptive, Apple Pay and Google Pay, pioneers of convenience, have

as companies complain that a particular payment method doesn’t become widely used, and the younger generation demands

perform as well for them online or fails to meet their financial even greater comfort, faster transactions, and a completely

expectations. From an implementation perspective, testing comes seamless experience. The question is how far can we push these

right after a thorough selection of the product (i.e., product and payment innovations in the future without exposing ourselves

technical discovery) and implies properly displaying the integrated to risks, especially concerning fraud? The fact that the younger

new payment method to customers. The placement and promotion generation is driving payment advancements is an excellent

of the payment method on the merchant’s checkout page are crucial. challenge for the digital world, but it also brings a higher risk of

We aim to target combinations of customers from different countries, sensitive payment data misuse. It’s a reality that if the younger

paying in different currencies, and using attributes that will best cater generation doesn’t directly encounter negative experiences, we

to those who prefer this method, thus ensuring customer satisfaction cannot expect them to be cautious. Their primary demands are

with the payment process. This shows exactly the necessity of speed and simplicity with minimal effort, which places greater

the UX/UI view. If you fail to display payment methods correctly, emphasis on security.So, as merchants, we should keep up

customers will be disappointed by the unsuccessful, complicated, or with modernisation while focusing more on payment security.

94 Payment Methods Report 2023 | Checkout Optimisation: Improving Conversion and Retention Rates
 OnBuy
Optimising the Payments Checkout – Best Practices from OnBuy

abandon their basket at checkout say it’s because the process

is too long. That’s pretty telling, and it’s something we made

Cas Paton
sure to avoid.
CEO

OnBuy What are the main challenges and benefits of

doing so?
Adding new payment methods often means integrating with

third-party gateways, which can be technically complex. That’s

part of the reason why we partnered with Canadian fintech

company Nuvei, leveraging their connections with BNPL

companies like Klarna and Clearpay to provide even more choices

for our customers.

As one of Europe’s fastest-growing ecommerce companies, OnBuy

is no stranger to delivering updates at pace – and that holds Implementing the payment options they know and love (with a

especially true for its checkout evolution. In the space of just a few user-friendly checkout design) ultimately resulted in a shopping

months, the UK platform has responded to consumer demand by experience that keeps them coming back for more. For our

introducing a number of new payment options, including Klarna, sellers, it has prompted reduced checkout abandonment rates,

Clearpay, and an industry-first cashback initiative, which allows improved consumer satisfaction, better chances of attracting

customers to use their earned cashback to pay for items onsite. new customers, and a higher likelihood of retaining existing

ones – all of which translate directly into sales. It’s a win-win

What are the best practices when implementing for everyone!

new payment methods and optimising the checkout

experience (UX/UI perspective)? From your perspective, how will Gen Z and
Listening to your customers and providing them with the solutions millennials help shape the future of online
they want is key to fostering a great business-consumer relationship. payments?
One of our recent surveys revealed that one in five people chose to As the ecommerce industry grows, payment preferences among

shop with a retailer because they offered their preferred payment Gen Z and millennial shoppers are evolving, and as a business,

method. That’s huge! It just goes to show the importance of a good you’ve got to adapt to keep pace and meet demand.

checkout experience in encouraging conversion.

We’re in a world of marginal gains, where smart shoppers are

We’ve always been committed to giving our customers what they looking for the best deals, convenience, and choice. That’s why

ask for, and that’s why we introduced so many popular payment we chose to launch OnBuy Cashback this year, combining our

options in such a short space of time. Our OnBuyers wanted the own value proposition with other popular payment methods.

flexibility to make purchases in a way that suits them, and we were This not only provides Gen Z and millennial customers with

excited to be able to respond by launching Klarna, Clearpay, and the flexibility we know they want, but also offers sellers more

OnBuy Cashback across our site. opportunities to grow.

The most important thing we wanted to remember when optimising We’ve always wanted to put our customers and sellers first, and

our checkout was simplicity. No one wants to be met with confusing I’m proud to say that the launch of OnBuy Cashback, alongside

signposting when they’re making a purchase, so the smoother our partnerships with other payment methods, is a testament to

and faster the experience, the better! Roughly 26% of people who that. It really does pay to shop at OnBuy!

95 Payment Methods Report 2023 | Checkout Optimisation: Improving Conversion and Retention Rates
 Vestiaire Collective
Optimising the Payments Checkout – Best Practices from Vestiaire Collective

of the strategy by the tech team might be complex and difficult

to fit in within the roadmap. Hence, it is important that the

Pedro Bennasar
project gets properly sized in terms of generated revenues once
Head of Payments implemented, and this should be handled as the number one
Vestiaire Collective priority.

In terms of commercials and contracts, merchants should make

sure that within the analysis, pricing has been benchmarked

and the company gets a competitive rate. As for the agreement,

the Legal team should be allowed enough time to review the

proposal and make any necessary assessments to it.

What are the best practices when implementing Lastly, adding relevant payment methods that fit your users’

new payment methods and optimising the checkout needs is a game changer, as this translates into generating

experience (UX/UI perspective)? additional revenue that otherwise wouldn’t have been accessed

Before implementing a new payment method, payment experts must by having, for instance, a standard payment offering. At the

consider a few things: same time, the engagement also increases, as users feel related

• Understanding your business; to the company by the product/service offered.

• Understanding the market you operate in;

• Understanding your audience. From your perspective, how will Gen Z and
millennials help shape the future of online
Once the above are identified, it is important to define how you want payments?
to position your company in terms of payment methods. To move Both Gen Z and millennials are already the drivers in this

forward, merchants should conduct an additional, in-depth analysis ecosystem. They are digital-first generations, and they will

together with their PSPs, discuss with other merchants, and even represent approximately 75% of the working population within

consider gaining more knowledge on the topic by reading educational the following five to ten years. Simultaneously, they are curious

industry reports to have a clear overview of how they can achieve and eager to experience new opportunities, and they never

their goal. It is also important to align internally with your tech and seem to settle for less.

product teams to ensure the project can be delivered on time.

Thus, we should expect to see further developments in the

Finally, it might be worth requesting marketing funds from the vendor contactless world, such as QR code payments, with biometrics

to help promote the payment method either at the launch date playing a key role. Alternative types of payments such as crypto

(depending on its popularity) or once performance parameters are and BNPL are already well embraced, and their demand will

met and you receive the green light for promoting the payment keep on growing, driving digitalisation and financial and social

method. inclusion to two generations who have been through serious

economic downfalls in the past two decades.

What are the main challenges and benefits of doing

so? Finally, it is important to mention the role super apps play into

The main challenge is to find and compare all reliable information to this transformation. Payments are part of it, and ecommerce is

help you choose which payment method would be the best fit for forced to easily adapt to it, so it will be interesting to observe

your business. At the same time, seeing the correct implementation their role in the grand scheme of global payments in the future.

96 Payment Methods Report 2023 | Checkout Optimisation: Improving Conversion and Retention Rates
Company Profiles
 Company DIMOCO Payments
DIMOCO Payments is a licenced payment institution and acquirer. With over 20 years
of experience, it provides a holistic payment service tailored to individual needs.
With expertise in complex payment setups, DIMOCO Payments provides a consultative
approach, partnering with merchants and enabling them to reach their payment goals.

Website www.dimoco.com
Head office Brunn am Gebirge, Austria
How the payment method works Carrier billing (CB) is a payment method that allows consumers to make purchases of both
physical and digital goods with their mobile phones. The cost of the product is simply added
to the phone bill. It is available for both contract, as well as prepaid customers.
Target market iGaming, digital, gaming, mobility, retail, high-risk, pharmaceuticals, lifestyle
Geographical presence Global
Year founded 2000
Founder(s) Gerald Tauchner, Roland Tauchner
Licence type PI (Payment Institution)
Implementation requirements EEA entity and bank account, Carrier Billing Global
Company’s motto Your Partner in the Payments Ecosystem
Payment type
Credit card Yes
Debit card Yes
Prepaid Yes
E-wallet Yes
Online banking e-payments/ Yes
account-to-account payments
Direct debit Yes
Direct carrier billing Yes
Crypto Yes
Channels
Online Yes
POS/In-store Yes
Services
Settlement currency EUR, GBP, USD, CHF, DKK, RON
Processing currency All
Currency available for customers All
Implementation requirements EEA entity and bank account, Carrier Billing Global
Chargeback/buyer protection Yes
Automated and instant refund Yes
Reconciliation Yes
Fraud prevention (measures)/risk Yes
management
Pricing/fees structure Individual
Future developments Mobile Identity Services
Technology
Integration technology JSON
Integration support Direct integration (tokenization), re-direct payment pages, PCI-enabled S2S integration

View company profile in online database*

*The data present at the time of publication may be subject to changes and updates.
For the latest stats and information, we invite you to check the profile in our online company database.

98 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

dimoco.com
 Company Discover® Global Network
Discover® Global Network, the global payments brand of Discover Financial Services,
processes millions of cardholder transactions each day. With industry expertise, innovative
technology, and a closed-loop infrastructure, Discover Global Network provides effective,
customised solutions that evolve as needs change. Discover Global Network has alliances
with more than 25 payment networks around the world – and is led by three Discover
businesses: Discover Network, with millions of retail and cash access locations; PULSE®,
one of the leading ATM debit networks; and Diners Club International®, a global payments
network with acceptance in more than 200 countries and territories. For more information
visit DiscoverGlobalNetwork.com.
Website https://www.discoverglobalnetwork.com/
Head office 2500 Lake Cook Rd, Riverwoods, IL 60015
How the payment method works Connecting the world through payments, Discover® Global Network is built on reach,
capabilities and expertise of our brands: Discover®, Diners Club International® and PULSE®.
We process billions of transactions annually and partner across the industry to power
payments globally.
Contact details 1-800-347-2683, [email protected]
Geographical presence Global
Year founded 1986
Reach Global
Acceptance Global
Company’s motto Our mission is to help people spend smarter, manage debt better, and save more so they
achieve a brighter financial future.
Payment type
Credit card Yes
Debit card Yes
Prepaid Yes
Channels
Online Yes
POS/In-store Yes
Services
Chargeback/buyer protection Yes
Reconciliation Yes
Fraud prevention (measures)/risk Yes
management
Technology
Integration technology Yes
Integration support Yes
Transactions volume
Transactions value USD 550 billion

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100 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 More acceptance.
More sales opportunities.

More than 305 million loyal cardholders* from around the world are looking for merchants who want
their business. Be one of them by accepting Discover® Global Network. Once on board, we have
free signage to let in-store and online customers know their favorite card is welcome at checkout.
So, say “yes” to Discover Global Network and say “hello” to more customers.

To start accepting Discover Global Network, contact your acquirer or find one here.

© 2023 DFS Services LLC * Discover Global Network participation and RBR Global Payment Cards Data and Forecasts to 2027, September 2022.
 Company Finance Incorporated Limited
Finance Incorporated Limited (FIL) is an Electronic Money Institution based in Malta,
delivering a full range of financial services and infrastructure solutions aimed at individuals,
corporates, and institutions. Licenced and regulated by the Malta Financial Services
Authority, FIL’s extensive and innovative payment solutions include e-accounts, payments,
card issuing, acquiring (ecommerce), and POS.
Website https://www.financeincorp.com/
Head office Capital Business Centre, Entrance A, Floor 2, Triq taż-Żwejt, San Ġwann, SGN 3000, Malta
Core solution Since its inception, FIL has been striving to create an intuitive gateway to financial services
by leveraging a multitude of technologies. Their mission is to aggregate the pick of the crop
of these technologies into a journey that will tend towards costless financial transactions –
and, where the technology doesn’t exist, FIL has the skills required to create it.
Target market • Merchants – retail, digital, gaming, travel, shipping
• EU-licenced brokers, crypto, FX
• PSPs
• Fintechs
Contact details 00356 2247 000
[email protected]
Geographical presence Malta
Year founded 2015
Licence type EMI (Electronic Money Institution)
Member of industry associations EPIF, NACHA (Payment Innovation Alliance)
and/or initiatives
Standards and certifications PCI DSS
Company’s motto Simplicity through Innovation
Service provider type
Payment gateway Yes
Payment service provider – Yes
acquirer
Payments and financial Yes
infrastructure
Cryptocurrency payments Yes
solution
Channels
Online Yes
POS/In-store Yes
Payment capabilities
Hosted pages Yes
White-label solution Yes
Recurring payments Yes
Payment methods supported Yes – 3
Settlement currencies Yes – the pricing is tailormade to clients’ needs
Instant settlement Yes
Pay-out/disbursements Yes
Cryptocurrency payments Yes
solution
B2B payments Yes

102 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 Reporting/dashboards
Consolidated data and reporting Yes
dashboard
Fraud and risk management capabilities
Chargeback management Yes
Fraud ratio PSD2/SCA Less than 0.01%
Fraud and risk management SIFT
partners
Financial and compliance capabilities
FX – number of currencies Yes
available
Virtual IBAN Yes
Multi currencies virtual IBAN (# of Yes
currencies)
Current account/settlement Yes
account
Instant settlement Yes
Client onboarding (KYC/KYB) Yes
Clients
Future developments Payment orchestration
Transactions
Transaction volume 3.5 million
Transaction value EUR 6.7 billion

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103 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

Finance Incorporated Limited delivers an extensive range
of innovative financial solutions designed in a streamlined
process for corporations, individuals, and institutions.
 Company FlexCharge
FlexCharge is an AI-driven platform that partners with merchants and PSPs to instantly
review and recover failed customer transactions at no risk to the merchant and at
no cost to the consumer. The platform covers 100% of the decline codes using a fully
embedded, real-time, and white-labelled solution.
Website www.flex-charge.com
Head office Tel Aviv, Israel
Core solution FlexCharge reviews declined transactions using a wide set of data on its AcceptIQ platform.
Based on internal models, FlexCharge accepts the declined payment and purchases the
invoice from the merchant. The merchant gets a guaranteed transaction, while the customer
receives the product at no additional cost.
Target market Any online, ecommerce, digital commerce merchant.
Contact details [email protected]
516-287-7542
Geographical presence Global – focus on the US and Europe, with plans to expand to Latin America
Year founded 2021
Funding rounds and investors Seed round
Member of industry associations Member of the Electronic Transaction Association
and/or initiatives
Standards and certifications PCI-compliant
Company’s motto Turning payment declines into increased revenues
Service provider type
Payments and financial FlexCharge is a payment partner to merchants offering an invoice purchasing solution to
infrastructure help reverse declined transactions. FlexCharge is ultimately the Merchant of Record for the
invoice and authorises the consumer card on behalf of the merchant. We work similarly to a
payment processor, but it is more accurate to see FC as a value-added service (factoring),
supporting merchants and/or PSPs.
Cryptocurrency payments No
solution
Channels
Online Yes
POS/In-store No (unless unattended kiosk)
Payment capabilities
Hosted pages No
White-label solution Yes
Recurring payments Yes
Payment methods supported Credit card, debit card, ACH
Settlement currencies Yes – 3 (USD, GBP, EUR)
Instant settlement No
Tokenization No
Pay-out/disbursements No
Payments orchestration Yes
Cryptocurrency payments No
solution
Reconciliation and reporting No
B2B payments No
Operational efficiency:
- ERP integration No
- E-invoicing (automated) No
- Factoring Yes

105 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 Reporting/dashboards
Consolidated data and reporting Yes
dashboard
Fraud and risk management capabilities
Chargeback management No
Fraud ratio PSD2/SCA No
Fraud and risk management Yes
partners
Financial and compliance capabilities
FX – number of currencies Yes – 3 (USD, GBP, EUR)
available
Virtual IBAN No
Multi currencies virtual IBAN (# of No
currencies)
Current account/settlement No
account
Embedded finance/lending to No
SMEs or merchants
Embedded finance/BNPL for No
consumers
Instant settlement No
Client onboarding (KYC/KYB) No
Transactions
Transaction value USD 100+ billion

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106 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

Turning payment declines
into increased revenues

An AI Driven platform that partners with merchants and payment

providers to instantly review and recover failed customer transactions
at no risk to the merchant and at no cost to the consumer

Real Time Fully Embedded All Decline

Decisions Payment Types

Increased Better Customer

Revenues Outcomes

www.flex-charge.com
 Company Hokodo
Hokodo offers a scalable, all-in-one payment solution for B2B, complete with trade credit
and upfront payment options. We enable European businesses to achieve growth goals
without being hindered by operational inefficiencies, outdated payment processes, or working
capital constraints.
Head office London and Paris
Target market Merchants and marketplaces (industries include but are not limited to food and beverages,
agriculture, construction and building materials, industrial supplies, freelance and
professional services, freight and logistics, corporate travel, retail)
Contact details [email protected]
Geographical presence Europe and the UK
Year founded 2018
Founder(s) Louis Carbonnier, Richard Thornton, Sami Ben Hatit
Funding rounds and investors Latest: Series B (USD 40 million + undisclosed extension from Citi). Investors include Notion
Capital, Korelya Capital, Mundi Ventures, Opera Tech Ventures, Anthemis, Mosaic Ventures,
and Citi.
Licence type EMI (Electronic Money Institution)
Reach Not disclosed
Acceptance Not disclosed
Market share Not disclosed
Company's motto Buy. Sell. Do. More.
Payment type
Credit card Yes
Debit card Yes
Online banking e-payments/ Yes
account-to-account payments
Direct debit Yes
Buy Now, Pay Later/Instalments/
Pay by Invoice
• Business model Direct provider + white label + lender/loan provider
• Payment instruments used Credit card, invoice, bank transfer, mobile payment
• Credit check Yes
• Credit application Yes
• Late fees Yes, if applicable
• Marketplace app Yes, we have a solution for marketplaces
• Interest rates No interest for buyers on credit
• B2B Yes
Cash No
Direct carrier billing Yes
Crypto No
Channels
Online Yes
POS/In-store Yes – payment terms for buyers can be created without an API integration, via the Hokodo
Merchant Dashboard (e.g., for in-store or telesales)

108 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 Services
Settlement currency GBP and EUR
Processing currency GBP and EUR
Currency available for customers GBP and EUR
Chargeback/buyer protection Yes
Automated and instant refund Yes
Reconciliation Yes
Fraud prevention (measures)/risk Yes
management
Pricing/fees structure Not disclosed
Future developments Further European expansion
Technology
Integration technology API, ecommerce plug-ins/extensions
Integration support Support available on request. Plugins for Shopify, Magento and SparkLayer.

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109 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

Buy Now, Pay Later
built for B2B.
Offer instant trade credit to your B2B buyers
at the checkout, without the risk. Sell more,
win new business and get paid upfront.

Scan to learn more >

Checkout
www.hokodo.co
Checkout
Payment Options
Payment Options
Pay now
Instantly via bank
Pay now
transfer or credit card.
Instantly via bank
transfer or credit card.

Invoice
Invoice
Pay in 30 days,
Pay in 30 days,
interest free.
interest free.

InvoiceInvoice
Pay in 60Pay in 60 days,
days,
interest free.
interest free.

Continue
Continue
 Company Jifiti
Jifiti is a leading global fintech company that powers white-labelled embedded lending
solutions for banks, lenders, and merchants worldwide. Jifiti’s white-labelled BNPL platform
enables banks and lenders to seamlessly offer any consumer and business financing
programme at any merchant’s point of sale; online, in-store, and via call centre.
Website www.jifiti.com
Head office Columbus, Ohio
How the payment method works With Jifiti’s white-labelled embedded lending platform, merchants can easily embed
financing options from top banks and lenders to consumer and business customers,
within any customer journey and point of sale. The solution supports every B2B and B2C
financing programme, including instalment loans, lines of credit, BNPL, and split payments.
Merchants are able to maximise their customer approval rates using the company’s
multi-lender waterfall capabilities, thereby increasing conversions, sales, and AOV.
Target market • Banks
• Fintechs
• PSPs
• Merchants (retail, department store, furniture, electronics, appliances, lifestyle, sports and
outdoor equipment, healthcare, dental services, medical devices, educational services,
automotive & auto services, fitness, toys and entertainment, veterinary services, travel,
wedding, luxury and accessories, OEMs, CPG companies, contractors, heavy equipment
manufacturers, global merchants)
Contact details Maya Mason (VP Marketing, Jifiti)
[email protected]
Geographical presence US, Europe, Africa, Middle East, LATAM
Year founded 2011
Founder(s) Yaacov Martin, Meir Dudai, Shaul Weisband
Funding rounds and investors Available upon request
Licence type Available upon request
Company’s motto Providing access to affordable and responsible financial solutions when and where it
matters most.
Payment type
Credit card Yes
Debit card Yes
Prepaid Yes – credit card, gift card
E-wallet Yes – credit card, debit card
Direct debit Yes
Buy Now, Pay Later/Instalments/ Yes – any financial product
Pay by Invoice
• Business model White-labelled omnichannel embedded lending platform
• Payment instruments used Credit/debit card, direct debit, gift cards, ecommerce plugins, payroll
• Credit check Yes
• Credit application Yes
• Interest rates Dependent on use case
• B2B Yes
Channels
Online Yes
POS/In-store Yes

111 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 Services
Settlement currency EUR, GBP, USD
Processing currency EUR, GBP, USD
Currency available for customers EUR, GBP, USD
Implementation requirements Available upon request
Automated and instant refund Yes
Reconciliation Yes – daily settlement files
Fraud prevention (measures)/risk Yes
management
Technology
Integration technology Rest API
Integration support Direct integration, PSP integration, ecommerce plugins

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112 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 Company Link Financial Technologies, Inc. dba Link Money
Link Money is a US-based Open Banking company focused on building better payments for
merchants, partners, PSPs, gateways, and ISVs.

Website https://link.money
Head office 101 Mission Street, Suite 400
SF, CA 94105
How the payment method works Link Money Pay by Bank is an account-to-account payment method leveraging Open
Banking for authentication, verification, and fraud prevention. AccountVerify offers an
alternative to Plaid.
Target market • Merchants
• Marketplaces
• PSPs
• Fintechs
Contact details Shaun Vanderkaap, Head of Commercial, [email protected]
Geographical presence US
Year founded 2021
Founder(s) Eric Shoykhet
Funding rounds and investors Seed + Series A with Valar Ventures, Tiger Global, Amplo, Pareto Holdings, Quiet Capital,
and Shutterstock’s co-founder and CEO, Jon Oringer, for a total of USD 30 million
Acceptance Dozens
Implementation requirements US local entity and bank account required
Payment type
E-wallet Yes, can be used for funding wallets (A2A)
Online banking e-payments/ Yes
account-to-account payments
Direct debit Yes
Channels
Online Yes
POS/In-store Yes
Services
Settlement currency USD
Processing currency USD
Currency available for customers USD
Implementation requirements Bank account required
Chargeback/buyer protection Yes
Automated and instant refund Yes, automated
Reconciliation API or SFTP; flexible fields
Fraud prevention (measures)/risk Yes
management
Pricing/fees structure Cents + basis points
Technology
Integration technology Front end SDKs, back-end API
Integration support Shopify, Salesforce Commerce Cloud, Magento

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113 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 ••••

Open Banking
Payments for the U.S.
Save money on payment processing fees,
while reducing fraud, and improving the
customer experience.
 Company myPOS
myPOS is a powerful, all-in-one business platform for merchants of any type and size.
It helps SMEs grow and better respond to future challenges by offering them ways to
diversify their payment options, find the right digital tools, and sell across borders.

Website www.mypos.com
Head office The Shard, Level 24, 32 London Bridge Street, London SE1 9SG, the UK
Core solution An innovative, ready-to-use, omnichannel payment solution that empowers merchants with
flexibility and freedom to accept various card payment methods, providing instant settlement
at no extra charge.
Target market From nano and micro to small and medium merchants, myPOS has clients operating in
many industries such as travel and hospitality, taxi and transportation, professional services,
ecommerce and retail, food and beverage, insurance, automation, and many others.
Contact details Level 24, The Shard, 32 London Bridge Street, London, SE1 9SG, the UK
Geographical presence The EEA, the UK, and Switzerland
Year founded 2017
Licence type FCA-authorised and regulated EMI

myPOS Group has two EMIs:

• myPOS Payments Ltd, an Electronic Money Institution authorised and regulated by the
Financial Conduct Authority in the UK
• myPOS Limited, an Electronic Money Institution authorised and regulated by the Central
Bank of Ireland.
Member of industry associations myPOS is a member of the Electronic Money Association, as well as various local
and/or initiatives associations such as Association du Paiement in France and the Bucharest Chamber of
Commerce in Romania. It is also a member of the European Payment Council, BACS,
FinTech Alliance, Vendorcom, and many more.
Standards and certifications PCI DSS Service Level 1; EMI licence by FCA; EMI licence by CBI; Principal Membership
with Visa, Mastercard, AmEx.
Company’s motto Helps my business grow.
Service provider type
Payment service provider – Yes
acquirer
Payments and financial Yes
infrastructure
Channels
Online Yes
POS/In-store Yes
Payment capabilities
Payment methods supported Yes – 20+
Settlement currencies Yes
Instant settlement Yes
Tokenization Yes
Reconciliation and reporting Yes
B2B payments Yes
Operational efficiency:
- E-invoicing (automated) Yes
Reporting/dashboards
Consolidated data and reporting Yes
dashboard

115 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 Fraud and risk management capabilities
Chargeback management Yes
Fraud ratio PSD2/SCA Less than 0.06%
Fraud and risk management G2, Notolytix
partners
Financial and compliance capabilities
FX – number of currencies Yes – 14
available
Multi currencies virtual IBAN (# of Yes
currencies)
Current account/settlement Yes
account
Embedded finance/lending to Yes – Liberis and CrediNord
SMEs or merchants
Instant settlement Yes
Client onboarding (KYC/KYB) Yes
Clients
Main clients/references Samsung, Coca-Cola, DPD, KFC, DHL, Sixt, METRO, Raiffeisen Bank, Expedia, L’Oréal,
Domino’s, Autocab, and more
Case studies https://www.mypos.com/en/blog/category/case-study
Future developments Further European growth and US expansion; new product developments, including in the
unattended segment.
Transactions
Transaction volume 200 million transactions
Transaction value EUR 8 billion

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116 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 Company Nuvei
Nuvei is the Canadian fintech company accelerating the business of clients around the
world. Nuvei’s modular, flexible and scalable technology allows leading companies to accept
next-gen payments, offer all payout options and benefit from card issuing, banking, risk and
fraud management services. Connecting businesses to their customers in more than 200
markets, with local acquiring in 47+ markets, 150 currencies and more than 600 alternative
payment methods, Nuvei provides the technology and insights for customers and partners
to succeed locally and globally with one integration.
Website nuvei.com
Head office Montreal, Canada
Core solution Nuvei allows businesses to accept cutting-edge payment options, optimise new revenue
streams, and get the most out of their existing tech stack – all on one platform.
Target market Merchants: financial services, consumer retail marketplaces, digital goods and services,
social gaming, regulated online gaming, digital assets and cryptocurrencies, and travel
Contact details https://nuvei.com/contact/
Geographical presence Europe, North America, LATAM, Asia–Pacific, MENA
Year founded 2003
Funding rounds and investors More information available upon request
Licence type Payment Institution (EEA), Electronic Money Institution (EEA)
Member of industry associations Principal member of Visa, Mastercard, and Discover; ETA (Electronic Transactions
and/or initiatives Association); AGA (American Gaming Association); AMVO (Mexican Association of Online
Sales); CGA (Canadian Gaming Association); RMAI (Receivables Management Association
International); Nacha Third-Party Validation Preferred Partner; Faster Payments Council;
Merchant Risk Council; Merchant Advisory Group; Wespay
Standards and certifications PCSI DSS level 1
Company’s motto Payments designed to accelerate your business
Service provider type
Payment gateway Yes
Payment service provider – Yes
acquirer
Payments and financial Yes
infrastructure
Cryptocurrency payments Yes
solution
Channels
Online Yes
POS/In-store Yes
Payment capabilities
Hosted pages Yes
White-label solution Yes
Recurring payments Yes
Payment methods supported Yes – 600+
Settlement currencies Yes – 17+
Instant settlement Yes
Tokenization Yes, universal token
Pay-out/disbursements Yes
Payments orchestration Yes

118 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 Cryptocurrency payments Yes
solution
Reconciliation and reporting Yes
B2B payments Yes
Operational efficiency:
- ERP integration Yes
- E-invoicing (automated) Yes
Reporting/dashboards
Consolidated data and reporting Yes
dashboard
Fraud and risk management capabilities
Chargeback management Yes
Fraud ratio PSD2/SCA < 0.06%
Fraud and risk management In-house risk engine
partners
Financial and compliance capabilities
FX – number of currencies 150
available
Virtual IBAN Yes
Multi currencies virtual IBAN (# of Yes
currencies)
Current account/settlement Yes
account
Embedded finance/BNPL for Yes
consumers
Instant settlement Yes
Client onboarding (KYC/KYB) Yes
Clients
Main clients/references New Balance, Virgin Atlantic, GM, Gucci, FTX, Avon, Draft Kings, Valentino, BetMGM, D&G,
Shein, FanDuel, WestJet, Entain, Bumble, Rappi, Riot Games, Gett, lastminute.com, WIX
Case studies • VTEX
• Lastminute.com
• Kreatorhood
• Gett
• Fortuna
Future developments More information available upon request.
Transactions
Transaction value USD 128 billion FY 2022

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119 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 Company Ratepay
Ratepay enables large online retailers (merchants and marketplaces such as AboutYou,
IKEA, or Eurowings) to offer end-customers (buyers) the possibility to pay via open invoice,
direct debit, or in instalments. Being natively integrated at checkout, Ratepay is invisible to
the buyers and does not dilute the merchant’s brand and trustworthiness.
Website www.ratepay.com and www.ratepay.com/en
Head office Ritterstraße 12-14, 10969 Berlin, Germany
How the payment method works A customer buys a product from a merchant, the merchant gets paid instantly by Ratepay,
and then Ratepay settles the invoice with the customer.
Target market • Merchants
• Marketplaces
• PSPs
Contact details www.ratepay.com/kontakt/
Geographical presence Germany, Austria, Switzerland, the Netherlands
Year founded 2009
Founder(s) Miriam Wohlfarth, Alexis Giesen, Michael Röbbecke
Current Managing Directors: Nina Pütz and Sabrina Flunkert
Licence type PI (Payment Institution)
Acceptance 200+ merchants directly and 4,000+ via partners
Implementation requirements Local entity, bank account
Company’s motto Payments your way
Payment type
Direct debit Yes
Buy Now, Pay Later/Instalments/ Yes
Pay by Invoice
• Business model White label
• Payment instruments used Direct debit
• Credit check Yes
• Late fees Individual
• Interest rates Individual
• B2B Yes
Channels
Online Yes
POS/In-store Yes
Services
Settlement currency EUR, CHF
Processing currency EUR, CHF
Currency available for customers EUR, CHF
Implementation requirements Local entity, bank account
Chargeback/buyer protection Yes
Automated and instant refund Yes
Fraud prevention (measures)/risk Yes
management
Pricing/fees structure Disagio and transaction fee

121 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 Technology
Integration technology XML (Payment API v1) JSON (Payment API v2)
Integration support Plugins for web shops
Transactions volume
Transactions value EUR 4.7 billion

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122 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 Company Riverty
Riverty (formerly known under Arvato Financial Solutions and its BNPL brand AfterPay)
is a leading fintech company with a presence in 13 countries. Specialised in transparent
payment methods tailored for consumers, Riverty offers merchants a comprehensive
toolkit – from Buy Now, Pay Later schemes to smart accounting and debt collection –
enhancing the financial journey for all stakeholders.
Website www.riverty.com
Head office Stockholm, Amsterdam, Berlin
How the payment method works Consumers can shop now and pay after receiving the goods/services. The product comes
with various consumer-friendly features, making it one of the most popular payment options
in Europe.
Target market • Europe
• Retail/Ecommerce, Mobility/Parking, Telecommunication, Utilities, Digital Health, Banking &
Insurance
• PSP partners
Contact details Sebastian Ehrke, Director Ecosystem Growth/Global Campaigns, [email protected]
Geographical presence Europe
Year founded 1835 (2022 – Rebranding form Arvato Financial Solutions/AfterPay to Riverty)
Licence type PI (Payment Institution)
Reach We do not disclose this information.
Acceptance We do not disclose this information.
Company’s motto Our mission: we keep you in flow with payments made for you
Payment type
Prepaid No
E-wallet No
Online banking e-payments/ No
account-to-account payments
Direct debit Yes
Buy Now, Pay Later/Instalments/ Yes
Pay by Invoice
Business model Direct or through partners
Payment instruments used Pay in 3, 14/30 day invoice, monthly invoice, fixed instalments
Credit check Yes
Marketplace app Yes
Interest rates Variable
Cash No
Channels
Online Yes
POS/In-store Yes
Services
Settlement currency EUR, SEK, DKK, NKK
Processing currency EUR, SEK, DKK, NKK
Currency available for customers EUR, SEK, DKK, NKK
Chargeback/buyer protection Yes
Fraud prevention (measures)/risk Yes
management
Pricing/fees structure % fee plus tax fee, net settlement

124 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 Technology
Integration technology Yes – Rest
Integration support Numerous plugins and integrations
Transactions volume
Number of transactions 50+ million BNPL transactions
Transactions value We do not disclose this information.

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125 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

Driving
Payment
Innovation.
In a world driven by evolving
customer needs, Riverty continues
to redefine itself, pushing the
boundaries of innovation.

Explore how we respond to

consumer needs for flexible
payments, cultivate transparency,
and empower financial freedom.

Explore how Riverty can be your

sustainable growth partner.
 Company Tinka B.V.
Tinka is a deferred payments service provider based in the Netherlands, registered and
authorised by the Netherlands Authority for Financial Markets (AFM). With more than 65 years
of experience, we offer responsible consumer financing solutions. These solutions include
invoiced Buy Now, Pay Later and different consumer credit options – online and in store.
Website www.tinka.com
Head office Zwolle, the Netherlands
How the payment method works Merchants decide which Tinka deferred payment solution(s) they would like to offer to their
customers, both online and in store: Pay in 14 days or regulated Consumer Credit. All trans­
actions are in real time and shown in both the merchants’ systems and the Tinka app.
Target market • Merchants (sustainable energy, home and garden, furniture, fashion, electronics, and
e-mobility)
• Marketplaces
• PSPs (Buckaroo, Credit Click, Pay – other PSPs upon request)
• Fintech
• Banks
Contact details Karlheinz Toni, CEO, [email protected]
Geographical presence The Netherlands – Tinka’s focus for 2023 is to provide its services in the Netherlands,
however, starting from 2024, Tinka will expand its services across Europe.
Year founded 2021
Funding rounds and investors Tinka is owned by the Private Equity Fund Apax Partners.
Licence type Registered and authorised by the Netherlands Authority for Financial Markets (AFM)
Reach > 2 million consumers in the Netherlands
Acceptance > 30 merchants
Implementation requirements Merchants need to have a Dutch Chamber of Commerce registration. Tinka will take care of
the KYC/ KYB process.
Company’s motto Buy now, pay smart.
Payment type
Debit card Yes
Prepaid Yes
Buy Now, Pay Later/Instalments/ All unregulated products as mentioned + Consumer Credit which is a regulated product
Pay by Invoice
• Business model Direct provider
• Payment instruments used No card is needed to start an instalment plan. Independent risk scoring.
• Credit check Yes + ID check
• Credit application Yes
• Late fees Tinka applies no late fees.
• Marketplace app Yes
• Interest rates 13.9% for consumer credit; 0% for Pay in 14 days
• B2B Tinka provides its services to merchants and their customers – B2B2C
Channels
Online Yes
POS/In-store Yes
Services
Settlement currency EUR
Processing currency EUR
Currency available for customers EUR
Implementation requirements Direct integration via API, connection through PSP partners or through available plugins
such as Woocommerce, Shopware, Magento. Cashier/POS system integrations available,
as well as various card terminal integrations.

127 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 Chargeback/buyer protection Yes, we pay back as soon as possible after a return or complaint is completed by the
merchant. Most of the time, within two working days.
Automated and instant refund Yes
Reconciliation More information available upon request
Fraud prevention (measures)/risk Yes
management
Pricing/fees structure A fixed fee + % per transaction
Future developments Leveraging Open Banking technology and growing Tinka’s footprint in store.
Technology
Integration technology Direct integration via a server-to-server API (JSON REST), via partners (PSPs/ecommerce
platforms), or via plugins (WooCommerce, Magendo, Shopware), various cashier systems,
and card terminal integration available.
Integration support https://portal.tinka.nl/
Transactions volume
Number of transactions More information available upon request.
Transactions value More information available upon request.

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128 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 BUY NOW,
PAY SMART

SMART PAYMENT
IN STORE

Boost your sales and conversion

rates with the new Tinka card.

Consumers now have the opportunity to

shop in your stores and pay later in
36 months

Tinka is at the forefront of this in-store

solution.

Responsible deferred payment option

Easy set up

Payment via a digital or physical card

JOIN THE REVOLUTION!

SCAN

Contact
[email protected]

Our site
tinka.nl/zakelijk
 Company Token.io
Token.io’s A2A payment infrastructure is powered by Open Banking and built for the
payments industry. Token.io enables payment providers to grow their market share with
the simplest and fastest way to launch Pay-by-Bank as a mainstream payment method
across Europe.
Website www.token.io
Head office 70 St Mary Axe, London, UK
How the payment method works Token.io leads the market with the deepest and highest performing connectivity to over 80%
of bank accounts in 20 markets. Payment providers use Token.io’s white-label-ready A2A
payment infrastructure to launch their own A2A payment capabilities for online and POS.
Target market PSPs, gateways, acquirers, fintechs, banks/ASPSPs
Contact details [email protected]
Geographical presence Europe – Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Hungary, Ireland,
Italy, Latvia, Lithuania, the Netherlands, Norway, Poland, Portugal, Romania, Spain, Sweden,
the UK
Year founded 2015
Founder(s) Marten Nelson, Steve Kirsch, Todd Clyde
Funding rounds and investors Token has completed three rounds of funding, for a total of USD 80 million, from investors
including Octopus Ventures, Cota Capital, TempoCap, EQT Ventures, SBI Investments,
MissionOG, Opera Tech Ventures (BNP Paribas), and Sony Ventures.
Licence type Token.io Limited is authorised as an Account Information Service Provider (AISP) and as
a Payment Initiation Service Provider (PISP) by the Financial Conduct Authority in the UK
(Licence Number: 795904).

Token GmbH is authorised as an Account Information Service Provider (AISP) and as a

Payment Initiation Service Provider (PISP) by the German Federal Financial Supervisory
Authority, BaFin in Germany (Licence Number: 158595).

Token.io also provides technical services for other regulated entities using their own licence.
Reach Token.io’s complete A2A payments infrastructure is proven by a blue-chip base of partners
collectively processing payments for tens of millions of consumers worldwide.
Acceptance Token.io’s complete A2A payments infrastructure is proven by a blue-chip base of partners
collectively processing payments for millions of merchants worldwide.
Market share Token.io powers A2A payments for the world’s leading payment service providers and
financial institutions. In the UK, Token.io processes nearly one in every five Open Banking-
enabled payments.
Implementation requirements Non-technical implementation requirements are limited to a bank account that can receive
payments.

Payments can be remitted directly to the merchant, or via the PSP where the appropriate
licences are held.
Company’s motto For Token.io, success looks like a future in which A2A payments are a truly mainstream
payment method on a global scale. Combining best-in-class connectivity with a unique
solution purpose built for payment providers, and together with our blue chip base of
partners, we are making that future a reality.

130 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 Payment type
E-wallet Token.io’s A2A payment infrastructure enables Pay-by-Bank as an e-wallet top-up method.
Online banking e-payments/ Yes
account-to-account payments
Buy Now, Pay Later/Instalments/ Token.io’s A2A payment infrastructure enables Pay-by-Bank for invoice payments and
Pay by Invoice can also support payment links, which can be added to invoices to facilitate smoother
end-to-end payment experiences.
• Credit check With Open Banking-enabled connectivity to over 567 million bank accounts across
20 markets, Token.io facilitates access to aggregated bank account and transaction data
to facilitate smart credit checks
• B2B Token.io’s A2A payment infrastructure enables Pay-by-Bank for B2B payments – and
supports payment links to facilitate smoother payment experiences and reconciliation
processes.
Channels
Online Token.io’s white-label-ready A2A payment infrastructure enables payment service providers
to launch their own Pay-by-Bank method on ecommerce checkouts.
POS/In-store Token.io enables payment providers to offer Pay-by-Bank capabilities across channels,
including in-store. For point-of-sale (POS), seamlessly initiate A2A payments with any device
(tablet, mobile, or till) via QR code or Pay-by-Link sent via any channel (SMS, email, or chat).
Services
Settlement currency GBP, EUR, HUF, PLN, RON, DKK, NOK

Supported payment types:

For the UK: Faster Payments for Single Immediate Payments, Standing Orders, and Variable
Recurring Payments (VRP) for sweeping and non-sweeping.

For the Eurozone: SEPA Instant Credit Transfer for Single Immediate Payments, SEPA Credit
Transfer for Single Immediate Payments, Timed, Standing Order, and (coming soon) Dynamic
Recurring Payments (DRP).

For Non-Euro EU countries (Poland, Hungary, Romania): Hungary: Instant Payment System
(AFR); Poland: Elixir; Romania: Plati Instant/SENT; Sweden: RIX/BankGiro/PlusGiro;
Denmark: Kronos2; Norway: NICS.
Processing currency As above
Currency available for customers As above
Automated and instant refund Token.io’s Virtual Accounts enable instant refund capabilities. Payment providers can
seamlessly initiate instant refunds directly from their Virtual Account to a consumer’s bank
account, with no manual intervention or additional money movements required.
Reconciliation Token.io offers a high degree of flexibility for settlement, including direct-to-merchant, via
PSP, PSP treasury integration, and Virtual Account. Beneficiary onboarding is not required,
meaning clients can set the beneficiary account in each payment initiation request.
For reconciliation, the payment reference persists end-to-end, allowing for simple and
automated processing.

TPPs are given the freedom to set their own reconciliation values when they create
payment initiation requests using Token.io’s API. These values are passed through without
modification to the beneficiary, enabling automated reconciliation processes.
Fraud prevention (measures)/risk All data is encrypted in transit and at rest using modern ciphers. Access to underlying
management data is controlled using RBAC. Token.io carries out privacy and security audits regularly.
These components of the platform are audited annually in ISO 27001 and PCI DSS audits.
Transactions are also monitored for AML purposes.
Pricing/fees structure Please contact our sales team for further information: [email protected]
Future developments Token.io’s near-term roadmap includes further optimisation of our connectivity coverage
and performance, enhancements to Token.io’s Virtual Accounts and AIS products, additional
Web App functionality, and commercial Variable Recurring Payments pilots.

131 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 Technology
Integration technology RESTful API
Integration support Token.io provides its partners with dedicated Implementation Managers (IMs), who guide
customers through the integration and go-live journey. Implementation Managers provide
Customised Postman Collections specifically for each client’s use case.

Token.io also provides a final go-live gateway and checklist, which enable Implementation
Managers to ensure the integration is of high quality with appropriate handling of edge cases
to maximise the likelihood of successful adoption of the products our clients build.

We have a wide variety of experience and partnerships that can be leveraged to enable our
clients to build offerings, such as Pay-by-Link, plugin support for web shops, request-to-
play (text message), credit scoring, application scoring, and more.
Transactions volume
Number of transactions More information available upon request.
Transactions value Over GBP 12 billion on an annualised basis.

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132 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

ACCOUNT-TO-ACCOUNT
PAYMENT With the simplest and
fastest way to launch and
INFRASTRUCTURE grow Pay by Bank as a
payment method,
Token.io helps payment
POWERED BY service providers grow

OPEN BANKING their market share.

BUILT FOR
token.io
THE PAYMENT INDUSTRY

Payments Tech of the Year Open Banking Innovation Platinum Award Paytech Company of the Year
2023 Europe Fintech Awards 2023 Future Digital Awards, Juniper Research 2023 Fintech London Awards
2022 Future Digital Awards, Juniper Research

POWERING PAYMENTS FOR

...AND MORE

FCA & BAFIN REGULATED · ISO 27001 & PCI-DSS LEVEL 1 CERTIFIED © 2023 TOKEN, INC. ALL RIGHTS RESERVED.
 Company Unlimit
Unlimit is a global fintech company that offers a large portfolio of financial services, including
payment processing, Banking-as-a-Service (BaaS), and an on-ramp fiat solution for crypto,
DeFi, and GameFi. The company’s mission is to deliver solutions that eliminate financial
borders, enabling businesses to operate both locally and internationally with ease across
Europe, the UK, LATAM, APAC, and Africa. Based in London, Unlimit has 500 employees
across 16 offices and five continents, including Frankfurt, Singapore, São Paulo, Hong Kong,
and Mexico.
Website https://www.unlimit.com/
Head office London, UK
Core solution Payment processing (acquiring), multicurrency IBAN accounts, card issuing, Banking-as-a-
Service (BaaS), and fiat on- and off-ramp for DeFi, GameFi, NFTs
Target market • Merchants
• Ecommerce
• Retail
• Gaming
• Travel
• IT
• SaaS
• Advertisers
• Publishers
• Web and Software
• Licenced Brokers
Contact details [email protected]
Geographical presence Europe, the UK, APAC, Africa, LATAM, China, the US, Japan, India
Year founded 2009
Licence type Electronic Money Institution licence, Pan-European payments processing licence,
local acquiring licences in regions of presence
Member of industry associations The Payment Association
and/or initiatives
Standards and certifications PCI DSS
Company’s motto Borderless payments. Local to local, local to international.
Service provider type
Payment gateway Yes
Payment service provider – Yes
acquirer
Payments and financial Yes
infrastructure
Cryptocurrency payments Yes
solution
Channels
Online Yes
POS/In-store No
Payment capabilities
Hosted pages Yes
White-label solution Yes
Recurring payments Yes
Payment methods supported Yes – more than 1,000 payment methods
Settlement currencies Yes – more than 10
Tokenization Yes

134 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 Pay-out/disbursements Yes
Payments orchestration Yes
Cryptocurrency payments Yes
solution
Reconciliation and reporting Yes
B2B payments Yes
Operational efficiency:
- ERP integration Yes
- E-invoicing (automated) Yes
- Factoring Yes
Reporting/dashboards
Consolidated data and reporting Yes
dashboard
Fraud and risk management capabilities
Chargeback management Yes
Fraud and risk management In-house system
partners
Financial and compliance capabilities
FX – number of currencies Yes
available
Virtual IBAN Yes
Multi currencies virtual IBAN (# of Yes
currencies)
Current account/settlement Yes
account
Client onboarding (KYC/KYB) Yes
Clients
Main clients/references More information available upon request
Case studies More information available upon request
Future developments More information available upon request
Transactions
Transaction volume More information available upon request
Transaction value More information available upon request

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135 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 Company Worldline
Worldline is a global leader in payments technology. We help businesses of all shapes and
sizes to accelerate their growth journey – quickly, simply, and securely. With advanced
technology, local expertise, and solutions customised for hundreds of markets and
industries, Worldline powers the growth of millions of businesses around the world.
Website www.worldline.com
Head office Tour Voltaire
1 place des degrés
CS 81162
92059 Paris la Défense Cedex
Core solution Our suite of solutions helps businesses accelerate their growth journey – from in-store
and online commercial acquiring to digital services and highly secure payment transaction
processing. Wherever you are or want to go, our solutions help you get there.
Target market • Merchants (retail, digital goods and services, self-service, petrol and energy, hospitality
and travel, transportation)
• Marketplaces
• PSPs
• Fintechs
• Banks
• Brokers
• Crypto
• FX
Contact details [email protected]
Geographical presence With geographical presence in 40 countries and commercial activities in more than
170 countries.

EUROPE
Austria, Baltics, Belgium, Croatia, Czech Republic, Denmark, Finland, France, Germany,
Greece, Hungary, Italy, Luxembourg, Malta, Norway, Poland, Portugal, Romania, Slovenia,
Spain, Sweden, Switzerland, The Netherlands, Turkey, the UK

NORTH AMERICA
Canada, the US

LATIN AMERICA
Argentina, Brazil, Chile

ASIA-PACIFIC
Australia, China, India, New Zealand, Singapore, Japan, Hong Kong, Malaysia, Taiwan,
Indonesia
Year founded 1973
Funding rounds and investors Please refer to https://investors.worldline.com/en/home.html
Licence type PI (Payment Institution) or API (Authorised Payment Institution)
Member of industry associations EMVCo, W3C, FIDO Alliance, EDPIA, EPI, MAG (ECB)
and/or initiatives
Standards and certifications ISO 9001:2015, ISO 22301:2019, ISO 27001:2013, PCI, ISAE 3402 and ISAE 3000, SWIFT
SIP 2021 certified
Company’s motto Payments to grow your world

137 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 Service provider type
Payment gateway Yes
Payment service provider – Yes
acquirer
Payments and financial Yes
infrastructure
Cryptocurrency payments Yes
solution
Channels
Online Yes
POS/In-store Yes
Payment capabilities
Hosted pages Yes
White-label solution Yes
Recurring payments Yes
Payment methods supported Yes – 150+
Settlement currencies Yes
Instant settlement Yes
Tokenization Yes
Pay-out/disbursements Yes
Payments orchestration Yes
Cryptocurrency payments Yes
solution
Reconciliation and reporting Yes
B2B payments Yes
Operational efficiency:
- ERP integration Yes
- E-invoicing (automated) Yes
- Factoring Yes
Reporting/dashboards
Consolidated data and reporting Yes
dashboard
Fraud and risk management capabilities
Chargeback management Yes – 24/7 monitoring of the platform
Fraud and risk management Yes
partners
Financial and compliance capabilities
FX – number of currencies Yes
available
Current account/settlement Yes
account
Embedded finance/lending to Yes
SMEs or merchants
Embedded finance/BNPL for Yes
consumers
Instant settlement Yes
Client onboarding (KYC/KYB) Yes – for acquiring and collecting

138 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

 Clients
Main clients/references • Spotify, Subway, TOTAL, Lufthansa, Sephora, KLM, Trip.com
• BNPP, Commerzbank, ING, UniCredit, KBC, PSA, knab
Future developments Extend the platform capabilities with new innovative use cases.
Transactions
Transaction volume • 27.7 billion acceptance and acquiring transactions per year
• 11.5 billion issuing processing transactions
• 12.1 billion acquiring processing transactions
• 21.3 billion account payments transactions
Transaction value EUR 1.07 billion in Q1 2023

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139 PAYMENT METHODS REPORT 2023 | COMPANY PROFILES

Your partner to stay
ahead of the curve
on the latest payment
trends and innovations.
Bringing you expert insights and
in-depth studies, subscribe to our
newsletter and unlock your potential
for growth as we empower people
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