2024 Global Pyaments - Commerce & Payment Trends Report

20
24
Commerce
and Payment
Trends Report
Five trends to watch
Global Payments 2024 Commerce and Payment Trends Report
EXECUTIVE INSIGHT Transformation and adaptation have always been at the improvements in the payment process are also driving
heart of business, and that’s especially true now. An un- greater exposure to bad actors. As we build new
predictable global economy has forced many leaders into enhancements, we need to think about making the entire
action. And with the rapid advance of new technologies, commerce and payment process even more secure.
those who get out in front of major trends are in the best
position to benefit from them. These trends form the center of this year’s report. We
have spoken with leading industry experts and conducted
In commerce, businesses of all sizes have experienced a global market research study among businesses and
a year of disruption and rapid change. Most notably, issuers to identify five key trends that we believe will make
generative AI is catalyzing transformation and innovation. a major impact in the coming year. These are:
Already, many businesses are deploying generative AI to
rapidly improve customer service and support, enhance • Generative AI
Cameron Bready security and fraud detection, and support the integrations • Embedded payments
President, Chief Executive Officer, critical to making payments efficient and powerful. • Security and fraud prevention
Global Payments Without a doubt, generative AI represents one of the • Live commerce
most impactful trends we have seen in decades. • Next-gen digital experiences
This and other trends present new opportunities to Each of these trends reflects a move toward making each
rethink and reinvent the entire payment and consumer transaction—whether in person or online—simpler, more
experience at the business level. Whether it’s embedded secure and seamless. And all of it is informed by data that
payments, behavioral biometrics or gamification of makes transactions more personalized.
payments, businesses are on an ongoing journey of
innovation and creating fresh experiences for consumers. Consumer needs and expectations are driving these
The result is less friction and more engagement, and the trends. Businesses that want to lead the competition
expectation that businesses will keep raising their game. need to understand these trends and find ways to apply
them to their own strategies. That kind of proactive
Of course, that expectation is not just for new ways of approach will put every organization in a position to stay
handling and processing payments. Some relate to the out front, meeting consumers where they want to go next.
basics. Take the issue of security and fighting fraud.
Businesses can’t afford to sit on the sidelines. The Read on to discover how to take your business to
technologies and digitalization that drive so many of the the next level.
2
In 2023, the global economy was flashing And it’s none too soon. Consumer
red in key markets as high inflation and expectations are changing. The bar is
interest rates persisted. But that hasn’t higher. People want seamless buying
disrupted the transformation we are experiences. And consumers want
seeing in commerce and payments. protection from increasingly
sophisticated fraudsters.
That transformation was catalyzed by the
introduction of generative AI, a technology How do you meet expectations and
with significant implications for the global balance priorities in the year ahead?
economy. With AI and several other Our 2024 Commerce and Payment
major trends years in the making, global Trends Report highlights five top trends
commerce is poised for massive that every leader needs to understand
innovation and creativity across every and appreciate to propel business growth.
stage of the consumer’s buying journey.
TRENDS OVERVIEW
TREND 1 TREND 4
Artificial Live commerce

intelligence Makes an impression,
Takes center stage and the sale
TREND 2 TREND 5
Embedded Next gen digital

payments experiences
Make them work for Quick, convenient, fun
your business
TREND 3
Security and
fraud prevention
Rise to meet
fresh challenges
4
Global insights from the experts
For this report, we held in-depth discussions with innovation leaders, technologists and
industry experts from leading financial institutions, businesses and payment networks.
We also surveyed 541 global professionals immersed in advancing commerce. What
they shared with us suggests that whatever direction the global economy may take,
businesses of all sizes are taking the initiative to remove friction from the payment
process, deploy the latest technologies to reduce fraud, and deepen their relationship
with consumers with each transaction. This report highlights insights from payment
experts across the globe—Europe, North America and Asia Pacific—who are tracking
the latest innovations and trends in payments and commerce.
Explore the trends Artificial intelligence Embedded payments Security and fraud Live commerce Next-gen technologies 5
TREND 1
Artificial
intelligence
takes center stage
AI’s emergence as a leading business driver is clear.

Now that AI has captured the public’s attention, it can be
used to address many business opportunities—from sales
forecasting and customer service to fraud mitigation and
more. Business leaders now have access to unprecedented
analytical and predictive brainpower—the question
is how to use it to gain a competitive edge.
The AI revolution: As big as the internet?

After ChatGPT introduced the world to the power of generative AI, Bill Gates said AI would
be a revolution on par with the internet. A bold prediction, but the numbers bear it out.
In commerce, generative AI could rewrite the rules. According to McKinsey, this

technology could add $2.6 trillion to $4.4 trillion in value to the global economy annually
across the 63 different business use cases they analyzed.1 Of the five greatest impacts
by dollar size, three would be in sales, marketing and customer operations, McKinsey says.
“It’s not very often in one’s lifetime that a technology like this comes along with such
a wide variety of use cases,” says Vanessa Colella, head of innovation and digital
partnerships at Visa.
But which applications of AI make the most sense? That’s a question business leaders
are busy trying to answer.
“Virtually every business is trying to understand how to incorporate

or integrate generative artificial intelligence.”
Guido Sacchi
Global Payments, SEVP and Chief Information Officer
And organizations are recognizing the opportunity.
• Sixty-one percent of companies surveyed are enthusiastic about the impact of AI on

their business. However, there is an enthusiasm gap between the types of business-
61%
es: Forty-nine percent of small and medium-sized businesses (SMBs) are enthusiastic
versus 80% of large and multinational enterprises.
• Forty-seven percent of businesses and 37% of issuers indicate this trend is extremely
of companies are important to their business in 2024.
enthusiastic about AI • Among businesses, the top three expected applications for AI are customer service
(43%), fraud detection (43%) and marketing (40%).
AI is a business force multiplier

For SMBs, enterprises and multinationals, generative AI is a force multiplier. It amplifies
existing technologies and investments aimed at improving productivity, efficiency and
customer engagement. It lies behind some of the major trends revolutionizing commerce
and payments.
• AI-powered biometrics helps speed customers through checkout.
• AI offers the potential to greatly increase the accuracy of fraud detection.
• AI-supported API integrations are faster and less labor-intensive.
SPOTLIGHT
AI’s impact on customer service
McKinsey estimates that technology handles roughly half of customer contacts already.
Generative AI could handle another quarter. A customer service “bot” powered by generative AI
could use details provided by a customer to resolve simple issues immediately, retrieve important
information for a customer success representative and recommend next steps. Productivity at
customer service centers, McKinsey estimates, could rise by 30% to 45%.2
Why generative AI is transformative

Generative AI marks a new era: While businesses have been using AI for years,
generative AI represents an entirely new type of technology.
“Generative AI is self-learning and offers improved predictive capabilities over time,” says
Sacchi. “It’s a feedback loop that continuously validates results and feeds them into the
model. The model keeps refining itself to produce better results. The generative aspect
of it is what is new.”
Here’s how businesses are putting generative AI to work.
Enhancing operational efficiencies for clients. API integrations for businesses are often
rigorous and time-intensive. “A point of friction for a lot of companies in their integrations
is taking the time to build APIs to capture and push all the necessary information,” says
Adam Mitchell, EVP of product, technology and enablement at Global Payments.
“Generative AI’s ability to streamline and automate software development will lead to
more integrations like shopping carts, CRMs and email marketing tools.”
Boosting customer support. Chatbots have become commonplace customer service

tools for many businesses. Generative AI-powered chatbots, however, are poised to make
significant strides in meeting and anticipating customer needs.3 They’ll be able to answer
common queries about payment balances, order statuses and returns, freeing up
customer service teams to address more complex or sensitive issues (see Spotlight).
“I think you’re going to see a huge reduction in call volume at

customer service centers. AI will free up support teams to dig into
really hard-to-solve, complex problems.”
Adam Mitchell
Global Payments, EVP of Product, Technology and Enablement
Managing fraud and risk. Generative AI opens the door to better fraud detection.4
Right now, fraud detection systems have too few “genuine” or strong fraud cases to
analyze and learn from. With generative AI, you could produce synthetic examples of
fraud based on the patterns established by actual cases.5 These sequences would,
in turn, help improve fraud-detecting systems. Generative AI is like a coach to an athlete
who needs to train for rare but critical game situations.
Delivering friction-free payments and authentication. Amazon’s “pay-by-palm”

technology allows customers to pay by scanning their palms on a point-of-sale (POS)
device in some of the company’s Whole Foods stores. Using biometric authentication,
generative AI and machine learning, pay-by-palm can speed shoppers through checkout.6
Behind the scenes, AI-powered technology is authenticating the customer’s identity and
processing their payment, another step towards making the payment experience “invisi-
ble” for
customers. “The authentication space is ripe for further innovation,” says Sacchi. “People
want maximum security with minimum friction.”
BUSINESS TAKEAWAY
While generative AI first wowed audiences are powerful, and when thoughtfully applied
by generating poems, essays and even to key business functions, AI can boost team
websites from the simplest prompts, its full productivity and potentially transform the
impact will be felt as companies turn their way your customers experience your brand
power on business use cases. and business.
“Every time we get a big, fundamentally

different type of technology, the initial use
cases start out kind of clunky. Yet over time,
it raises the bar for what customers expect,”
says Visa’s Colella. “Those expectations seep
into consumers’ hearts and minds and once
they’re there, they don’t go away.”
Generative AI tools are already finding their

way into many platforms and applications
used by businesses of all sizes. These tools
TREND 2
Embedded
payments:
Make them work
for your business
The pandemic pushed millions of consumers to rely on

embedded payments, where they can make a purchase
without leaving their favorite website, social media channel
or mobile app. It’s a trend we’ve been watching for several
years. But now, embedded payments are exploding across
commerce and in unexpected industries. In the five-year
period ending in 2026, the global market for embedded
payments is expected to surpass $138 billion, a more than
threefold increase.7 The value of embedded payments to
consumers is clear. And businesses can take advantage
of a trove of customer data through a streamlined
payment experience.
Meeting consumers where they are

Today, businesses beyond commerce are putting embedded payments to work: In
everything from healthcare to utilities to real estate, enterprises recognize that consumers
welcome the low-friction process. And in certain cases, embedded payments are essential
to the sector’s future. For instance, software vendors for residential landlords have
evolved from providing property management solutions like parking or maintenance
to handling payments.8
“Just as life on Earth seemed to suddenly burst on the scene, we’re going to see
a Cambrian explosion of embedded payments,” says Vanessa Colella, global head of
innovation and digital partnerships at Visa. “It’s the confluence of three elements:
consumer behavior, new technologies and industries eager to integrate that technology.”
Why the technology matters

The linchpin to widespread adoption is the sophistication and reliability of the underlying
technology. Thanks to advances in fintech, businesses of all sizes have access to a growing
suite of embedded payment products—whether their core business has anything to do
with finance or not. For instance, businesses can tap into technology partners that can act
as payment processors. Through collaborations and innovation, businesses can convert
their online platforms into one-stop payment gateways.9
“The technology is there,” says Luc Teboul, partner, transaction banking engineering
at Goldman Sachs, where he focuses on digital first corporate cash management and
payments. “We have a lot of financial engineering around the flow of funds, and we
make the client’s life easier by bringing payments into one place.”
That work in the background translates into a transformed customer experience.
“This is what we call contextual commerce, allowing the business

to meet the cardmember where they are, reducing the friction in
the checkout process. Whether it’s buying something through your
favorite social media app, or making a purchase directly in your
vehicle, the payment experience will be natively woven into the
customer journey.”
Paul Martin
American Express, VP, Global Emerging Payments and Strategy
Mass momentum
Industry experts predict embedded payments will gain even more momentum in 2024
and beyond. As businesses recognize how embedded payments can drive repeat sales,
promote better cash management, enable seamless reconciliation and reduce payment
error,10 we expect their interest to rise even further.
• Forty-four percent of businesses said embedded payments would be extremely

important to them in 2024.
Some high-profile use cases are driving awareness of the trend and its power.
Starbucks’ loyalty app, which allows customers to load funds, earn rewards and
pre-order drinks, held more than $1.8 billion in deposits as of the second quarter of
2023. By this calculation, that makes Starbucks bigger than 90% of individual US
banks by deposit size.11
“No longer do I stand in line to order: Payments are embedded, and

I don’t even think about them. I walk to the coffee shop, the coffee’s
sitting there ready to go, and I pick it up. These changes all feel small,
but they are transformative.”
Vanessa Colella
Visa, Head of Innovation and Digital Partnerships
In the background, creating deeper

consumer connections
Embedded payments foster customer loyalty. As the transaction fades into the
background, companies can create positive brand experiences and deeper
connections with their customers.
One example of this is in personal vehicles, as companies like Mercedes-Benz are

exploring ways to turn cars into payment devices. In 2018, the company launched its
own payments company, Mercedes pay. Customers can now pay for car-related
products, services and upgrades from their vehicle using a built-in biometric fingerprint
sensor. Mercedes pay is operational in more than 40 markets globally.12
• A recent study from Ptolemus Consulting Group says the connected vehicle
$600b
payments market could reach $600 billion by 2030.13
“Anything that removes friction is beneficial,” says Latha Youngren, chief marketing
officer, Tripleseat, an event management platform for hotels, restaurants and special
of com-
market size of connected venues. “When you take a flight now, they have your credit card information associated
with your seat, so you can order a drink and they just bring it to you, and there’s literally
vehicle commerce by 2030 no issue about payment.”
Of course, the advantage of offering embedded payments is not just about

removing friction. Now, businesses will have a pipeline of data and analytics,
collected automatically, to enhance customer experiences.14
Mark Smith, head of payments and market development at Amazon Web Services,
says the challenge is taking huge data repositories and turning them into growth
opportunities: “It’s about mining that data to find the new product or business
opportunity to set them apart from their competitors.”
BUSINESS TAKEAWAY
Tap into the convenience

of embedded payments
You don’t have to be an expert in payments Embedded payments can boost
to take advantage of the rise of embedded customer satisfaction—and your bottom
payment solutions. The technology exists line. The seamless process can build trust.
to allow non-financial businesses to offer The lack of friction can reduce cart
a seamless buying experience within the abandonment. And the convenience can
customer journey. encourage repeat purchases—all thanks
to evolving technology that’s readily added
“Payment solutions have evolved from just to your current payment systems.
the acceptance and processing of the
payment to a much richer offering included
in an overall experience,” says Sacchi. “It’s a
software-driven solution. The payment is still
a very important part of the experience, but
now the overall user experience really
dominates—and that is what matters to
the consumer.”
TREND 3
Security and
fraud prevention
rise to meet
fresh challenges
Digital, mobile and social commerce channels promise

to remove friction for consumers. But these channels also
create more opportunities for fraud, identity theft and other
criminal activities. Some estimates say 35% of ecommerce
transactions are malicious.15 Over the next decade, fraud
is expected to cost the card industry over $400 billion.16
And every dollar lost to fraudulent transactions costs
businesses $3.75 because of restocking, chargebacks
and other indirect costs.17 But businesses can defend
themselves, helped by new technologies, and leaders
are putting these new tools to work.
Customers expect privacy

Another dimension of security is privacy. In 2021, data breaches occurred more than 4,100
62%
times globally, equating to about 22 billion exposed records.18 The US has been particularly
hard hit. In 2022, more than 422 million US individuals19 and their personal records were
exposed, considering that many individuals are victims of multiple compromises. Among
credit card users, 44% reported two or more fraudulent charges in 2022.20
of businesses say
of com
Though threats can come from many sources, consumers and policymakers expect
reducing payment fraud companies to take the lead in protecting their privacy and sensitive data—and business
is an urgent concern leaders know it.
• Sixty-two percent of businesses say reducing the amount of payment fraud is an

urgent concern, more than any other issue.
• Fifty-five percent of total businesses rank “security of customer data” as the most
important trend going into 2024.
New threats, new responses

Omnichannel commerce means omni threats—and businesses recognize they must take
extra measures to protect payment systems. That’s how advanced technologies like AI
and sophisticated identity verification systems such as AWS’ continuous authentication
protocols point to the future.
“The concept of continuous authentication to verify identity throughout an entire session,

rather than just at login, is one way we’re working with customers to prevent unauthorized
access and decrease fraud risk,” says Mark Smith, head of payments and market
development at Amazon Web Services.
Such security measures and solutions aim to envelop the consumer at every touchpoint
of the buying journey, using data and various scoring mechanisms.
How technology is changing the game

While AI and machine learning have been part of the crime-fighting toolkit for
years, generative AI is a new propulsive force in fraud management.
“Generative AI is particularly powerful in training your existing fraud

detection tools, because it can generate more genuine-looking fraud
events to help create a broader pool of potential genuine-looking risk
scenarios.”
Kate Weiler
Discover Financial Services, Director of Payment Services Risk
“The most prevalent use case for AI we’re seeing from customers is around fraud
prevention and credit extension—being able to make quick decisions and continually
train and develop AI machine learning models to make the right decisions based on
the customer,” says AWS’ Smith. “We’ve got some really savvy fintechs and established
companies that are updating their fraud prevention platforms right now.”
Generative AI has also given businesses the power to identify and defend against
attacks in real time.
“Generative AI, as well as machine learning, has the ability for more real-time processing
than anything we could do in our back office,” says Weiler.
Fraudsters, however, use this same technology in increasingly sophisticated ways, such
as in phishing attempts and bulk email attacks. And while rules and practices on using AI
responsibly are being written every day, those don’t matter to criminals.
“Fraudsters are going to be aggressive in leveraging these models because they’re

not constrained by what we’re constrained by,” says Adam Mitchell, EVP of product,
technology and enablement, Global Payments.
The underlying message: It’s a spy vs. spy world where the tools get sharper, the stakes
get higher, and businesses can’t afford to sit on the sidelines.
SPOTLIGHT
Using neural networks to fight fraud
As with any criminal act, digital fraud is often pursued in a coordinated way by groups of
individuals. But finding these bad actors is challenging. They often hide behind multiple digital
identities and use sophisticated software to cover their tracks. Amazon Neptune, a graph
database solution, can create a fraud graph that stores and maps the relationships between
multiple people. Using email addresses and accounts, phone numbers, favored POS locations
and other information that fraud networks might share, a fraud graph can quickly map out a
connected but complex network, helping organizations (and law enforcement) home in on the
criminals behind some of the most coordinated and damaging digital attacks.21
How businesses are fighting fraud now

Globally, businesses are responding to the threat of fraud in many ways. Policies such as
PSD2, a European Union rule in force since 2019, have increased security around electronic
payments. PSD2 has led to further improvement in verifying consumer identities and their
accounts. Since these changes have been in full effect, fraud rates in Europe have fallen
by 70% and approval rates have steadily increased, according to Mastercard.
7%
But even without regulatory action, businesses are actively fighting fraud using tools
developed in recent years.
Multifactor authentication (MFA): Asking consumers to use more than one form of
more businesses are
of com
authentication to accurately verify their identity can be extremely effective in blocking
considering MFA in 2024 most automated cyber-attacks,22 bulk phishing attempts and even three-quarters of
targeted attacks.23 However, it may require a customer to key in a code sent to their
email or perhaps answer a secret question.
• Seven percent more businesses are considering introducing MFA in 2024 than those
who introduced it in the past 12 months.
Encryption: By encrypting information while it’s transferred from one system or device to
another, businesses can prevent fraudsters from accessing data or corrupting files. If the
data is intercepted in transit, it is scrambled and unusable. The card data is decrypted only
once it reaches the merchant provider so the transaction can be processed.
Network Tokenization: Network tokenization is a vital part of secure digital payments,

revolutionizing how sensitive payment data is stored and managed by major card
networks like Visa, Mastercard, Discover and American Express. It helps enhance
security, streamline payment processes, boost approval rates and reduce transaction
costs, positively impacting conversion and revenue. Network tokens are linked to
specific card networks, not acquirers or third parties, and can be updated if card
information changes. Once provisioned, network tokens can be used for all transactions,
even if the card is replaced, ensuring up-to-date card data and preventing declines due
to card issues, improving user experience and authorization rates.
“Network tokenization was introduced in the market some years

ago with the first digital wallets, but we have continued to expand
the use of tokenization throughout ecommerce to continue to
protect transactions.”
Silvana Hernandez
Mastercard, EVP, Product and Engineering
• Six percent more businesses are considering introducing tokenization in 2024

than those who introduced it in the past 12 months.
As technology evolves, we see even more advanced solutions for fighting fraud,
including tools that use multiple data streams to identify and prevent fraud.
Behavioral biometrics: AWS is working to detect fraud by pioneering new

authentication methods. For example, technology will be able to track individual
behaviors such as the ways users hold their phone as they complete a transaction to
ensure bots aren’t making payments. “It’s a really interesting fraud prevention technique,”
says AWS’ Smith. “It’s not like the traditional, multifactor authentication of a fingerprint,
facial scan, or a one-time passcode. It adds friction to a potential attack.”
SPOTLIGHT
Discover Commerce Xchange
Discover has a powerful ability to reduce fraud and resolve potential customer chargebacks through its
Discover Commerce Xchange (DCX).24 This platform combines operational and business data to provide
customers more specific information about where their recent purchases were made. For some customers,
that information is more recognizable than, say, a business address or a parent company’s name. “That
reduces overall call volume and confusion among cardholders. They will better recognize their own
transactions this way,” says Discover’s Weiler.
BUSINESS TAKEAWAY
For businesses ranging from SMBs to The challenge is to leverage technologies

multinationals and financial institutions, that remove friction from the customer
security is a core competency in building experience without exposing the consumer
trust with the customer while fortifying or the business to unseen risks. Increasingly,
business operations. This task is complicated businesses will find that cutting-edge
by the very nature of digital, mobile and technologies such as AI and strong
social commerce and payments, which security protocols can help them meet
create new avenues for attacks aimed at customer expectations while also providing
stealing data or compromising operations. valuable protections.
TREND 4
Live commerce
makes an
impression,
and the sale
Nearly a decade after it debuted in China, live commerce

is entering the global marketplace with force.25 Shoppers
worldwide are engaging with hosts in livestreamed
programs. Encouraged by what they see, these
consumers are making purchases on the spot. It’s a
trend that we mentioned in our 2023 report but warrants
its own spotlight this year. Live commerce not only
introduces more customers to a brand, but also creates
energy and instant demand, helping businesses succeed
in a crowded marketplace.
A regional sensation goes global

The online Chinese marketplace Alibaba first held a shoppable livestream for its annual
Singles’ Day event in 2016,26 igniting the phenomenon. Live commerce brings star power to
the purchasing moment and has proved to be particularly effective for sales of apparel and
beauty products. Customers stream to see influencers and celebrities promote lipstick and
other products. Categories including food, furniture and books are now being sold in live
commerce events.
26%
With only a camera, a mic, a streaming platform and broadband, businesses of any size can
reach new customers. A Chinese livestreamer sold $650,000 of beef jerky in livestreamed
events, multiplying sales by 30 in just two years.27
of businesses already
of com
Will others follow Asia?

use live commerce
Coresight Research estimates livestream shopping will account for more than 5% of
total US ecommerce sales by 2026.28 Growth in live commerce could address one of
the biggest issues digital platforms face: abandoned carts. In the Americas, nearly three-
quarters of shopping carts (72%) get abandoned29 before purchase because of barriers
like complicated checkouts.30 Live commerce removes much of this friction. Shoppers
don’t need to create an account because their payment details are already embedded
in the session, creating a smoother shopping experience.
Live commerce, in numbers

• More than a quarter of businesses (26%) are already harnessing the power of live
commerce. Seventeen percent say they have introduced live commerce in the past
12 months. Twenty-three percent say they plan to roll out live commerce over the
next year.
• Expect more investments in online infrastructure to make this happen. Three of every
four businesses say they’re actively contemplating expanding or refining their online
channels in 2024.
• In 2022, about $500 billion in goods were sold through livestreaming, an eightfold
increase since 2019.31
• Live commerce accounted for 32% of purchases via digital commerce channels in a
six-month period, according to a 2023 report by the marketing intelligence company
WARC and Google. The study looked at 16 countries spanning Africa, Asia, Australia,
Europe and North America.32
- W
ith Asia leading the way, live commerce is attracting more interest. In our survey,
35% of respondents in Asia said they are considering introducing live commerce,
with 23% percent in North America and 15% in Europe saying the same.
Billions of eyes
The momentum behind live commerce shows no signs of letting up. TikTok recently
partnered with live-selling software provider CommentSold to enable live-selling
integrations with TikTok Shop.33 The company has even gotten into the logistics
business to support these live-commerce ambitions, opening fulfillment centers in
the US and the UK.34,35
Now comes augmented reality (AR) technology, which could allow customers to try
out products virtually before buying.
“We are seeing edge cases where the digital and physical worlds overlap,” says Guido
Sacchi, SEVP and chief information officer at Global Payments. “The consumer might see
a digital good, but it can ultimately become a physical product available for purchase.”
In 2023, Vice Media announced a content partnership with the game-streaming platform
Twitch. The collaboration incorporates live shopping and ecommerce opportunities.36
Twitch offers a significant market opportunity for live commerce. Its users log two billion
minutes of video watched every day, equivalent to eight years of videos each month.37
Big players getting into live commerce

Meta has discontinued its live-shopping features, but other tech giants including eBay
and Google are all investing in and testing live commerce. In the US, Amazon kicked off
Prime Day in July 2023 with a full day of live commerce.38
Walmart has launched live commerce with a series of events headlined by entertainers
and beauty influencers. Some of the events have a DIY component. For instance, sports
fans can tune into an event and learn how to whip up snacks for game day. Expectant
parents can watch live-commerce events to learn how to prepare for the arrival of their
newborn, with products available for purchase. Walmart is promoting the sessions to
generate the anticipatory buzz of a movie premiere–complete with trailers.39
SPOTLIGHT
China: Live commerce trailblazer
According to McKinsey, 57% of live-commerce sellers in China have used the shopping format
for more than three years. That compares with 5% to 7% of live-commerce sellers in Europe, Latin
America and the United States. China is also the leader among frequent live shoppers, with 87%
of consumers tuning in to a live-shopping event at least once per month. Again, other regions lag
China. In Latin America, 64% of individuals surveyed were frequent live shoppers. In Europe, 52%
reported attending a live-shopping event at least once per month. Among respondents in the US,
43% were frequent attendees.40
BUSINESS TAKEAWAY
A clear opportunity, with some risks

The opportunity is clear: Companies that platforms. Social media use has exploded
embrace live commerce could see upward over the past two years to two hours and
of 25% top-line growth, according to 27 minutes per day on average.42 And
Deborah Weinswig, CEO of Coresight importantly, social media users are far more
Research. But what risks come with that likely than other consumers to buy online.43
growth? As with all forms of social
commerce, the risk of fraud, identity theft Some tips to get started?
and other security issues remain.41 And given • Keep an eye on brands and influencers
how dependent live commerce is on buzzy in your industry who’ve shown success
social media content and the recruitment of through their livestreams.
talent and influencers, businesses will • Model your approaches on the best
need to plan carefully and refine their strategies from tech giants like TikTok,
strategies quickly. Amazon or Google.
• Stay adaptable as tech, regulations
But the potential is real, precisely because and consumer desires change.
live commerce has taken root among the
demographics that have made social Live commerce presents a big opportunity
media so powerful for businesses of all sizes. in 2024 and beyond. And your future
Social media users are not only young and customers might already be looking for
tech-enabled. They’re also deeply engaged you on their favorite online and social
in what they experience on social media media apps.
TREND 5
Next-gen digital
experiences
—quick,
convenient, fun
Consumers have come to appreciate how various

payment systems can remove friction from the
purchasing experience. Now, the latest technologies
are delighting customers before they even realize what
they need. Whether it’s the acceleration of contactless
payments, which provide customers a simple, in-the-
moment way to close a transaction, or gamification44
of commerce and payment experiences, companies
are finding new ways and tools to delight the consumer,
and possibly set up the next sale.
Making commerce memorable
$10testimated of com
Technologies that amplify a company’s ability to serve the market—such as mobile
points of sale—are not only creating new opportunities for growth, they’re also creating
memorable moments and new dimensions of engagement with the consumer so they
want to come back to the site, the store and the brand.
global transaction value • Thirty-six percent of businesses introduced cashierless checkout over the past year,
of contactless 44% are using it now, and 21% are considering using it in 2024.
payments by 2027 • Tap-to-pay will be the most important payment method for hotel organizations
in 2024 (65% of hospitality/accommodation businesses say they plan to prioritize
this payment method).
Speeding the customer through checkout

Some of the tools used to streamline payments are familiar. But as the technologies
become increasingly sophisticated, they are being adopted by a wider range
of businesses.
Phone-to-phone contactless payments: According to Juniper Research, contactless

payment transactions will grow to more than $10 trillion by 2027.45 Contactless payments
aren’t new, but their use cases are expanding. The latest contactless payment to enter
the scene: phone-to-phone payments. Tap to Pay on iPhone and Tap to Pay on Android
use near-field communication technology (NFC) to accept secure payments seamlessly
through an enabled phone. Tap to Pay on iPhone also supports Apple Pay, contactless
credit and debit cards, and other digital wallets. Customers make a payment by
holding their iPhone, Apple Watch or other contactless payment device near the
merchant’s iPhone. It’s quick, convenient and secure. And businesses can now accept
contactless payments without the need for additional hardware or payment terminals.
“Phone-to-phone payments are going to drive a lot of change on

the acceptance side. Mobile points of sale and soft POS are going
to provide previously underserved populations of micro-merchants,
small businesses and merchants the ability to easily open things like
pop-up stores and other outlets for selling goods and services.”
Mark Smith
Amazon Web Services, Head of Payments and Market Development
Gamification of payments: For years, businesses have added games and contests to
their platforms to give customers reasons for coming back. But now, we are seeing new
examples of gamification of payments to motivate and reward customers. Using game
mechanics can encourage people to pay for purchases, subscriptions or donations by
making the experience more engaging and enjoyable. Gamifying payments can also
build loyalty by encouraging and rewarding repeat purchases.
SPOTLIGHT
Gamification drives engagement
Paytm is bringing payment gamification to India. First, the company provided 10%
discounts to consumers who used the Paytm wallet to make a payment. Once Paytm
had built a large-enough base of customers, the company shifted its customers to
a game—every fifth and tenth customer now get cash back. For the customers, the
incentive is to engage more often because they are rewarded with more chances to
win a discount.46
Autonomous checkouts: A form of cashierless checkout, autonomous checkout

allows customers to shop for products in a store and complete their purchases without
the need for traditional cashier interactions or manual payment processes. Instead, the
entire checkout experience is automated, helping businesses eliminate long lines and
wait times. One popular example is Amazon’s Just Walk Out47 technology, which allows
customers to browse, select their items and then just walk out. It all starts when you
enter the store by using Amazon One’s palm payment, the store’s app or your
payment card on your way in the door. A combination of cameras, shelf sensors
and AI technology is then used to track items “purchased”. When you’re ready to go,
simply walk out—and your payment is processed seamlessly in the background.
SPOTLIGHT
No lines, no waiting with autonomous checkout
At the American Express Shop at Barclays Center in Brooklyn, shoppers can walk in, scan
their Amex card, help themselves to the merchandise and food and beverages they want,
and then their cards are automatically billed for the items they take. The average basket
size is approximately 5% larger, the conversion rate is 80%, and the average amount of
time spent shopping is six to seven times less than at traditional concession stands.
Meanwhile, Amex shoppers are rewarded for using their card in a way that they value most:
No lines, no waiting and no missing the action.48
SPOTLIGHT
Added convenience—through autonomous checkout
7-Eleven has rolled out largely automated convenience stores in Taiwan using a
combination of Internet of Things, smart shelves with AI technologies such as
weight sensors, infrared-light curtains and ID confirmation. These tools capture how
a consumer moves through the store, puts items in a cart and walks out w hile the
transaction happens in the background.49 Other convenience stores, including Tesco,
Circle K and Hudson are experimenting as well with autonomous checkout stores.50
BUSINESS TAKEAWAY
Surprise is a selling point

For years, businesses have been adding
layers of unseen technology to speed
customers through transactions. These
enhancements are a direct result of efforts
by payment and technology companies
to build novel payment experiences that
are smooth and secure. Autonomous
checkouts, phone-to-phone contactless
payments and gamified payments are
removing friction, improving revenue and
importantly, introducing elements of fun into
payments. In short, payment technology is
not just about closing the sale anymore. It’s
about setting up the next one.
Technology drives opportunity—Are you ready?

In 2023, leaders at businesses of all sizes witnessed the transformative impact of a single
technology. Generative AI emerged as a game-changer with immense implications and
applications for customer service, fraud prevention, software development and more.
But generative AI is not the only technology making a big splash.
As this report shows, we are seeing many of these technologies deployed more broadly as
early adopters demonstrate their effectiveness in driving engagement and reducing friction.
It’s an important lesson. Technology doesn’t always make a big leap like generative AI. But as
trends build momentum, they become powerful drivers of value, as contactless payments and
live commerce demonstrate. The question isn’t whether these trends matter: It’s whether they
matter enough to you to invest in them right now.
That’s why understanding these trends is essential. Businesses of every size will need to
prioritize which opportunities command their investment and focus. With careful study and
the right support, leaders throughout our industry will know when and how to grasp these
opportunities and win.
46
METHODOLOGY
The information contained in this report is derived from the

following sources:
• In-depth interviews with subject matter experts from

Global Payments, Amazon Web Services, American Express,
Discover Global Network, Goldman Sachs, Mastercard, Visa
and Tripleseat.
• A global online survey that included 541 respondents

comprising payments decision makers and decision
influencers from SMBs, enterprises and multinationals
across North America, Europe and Asia.
• Research compilation and analysis of existing data sources,

including publicly available and privately held information.
2023 Commerce and Payment Trends Report 47

We would like to thank Vanessa Colella

Visa, SVP, head of innovation and digital partnerships
the following experts
Paul Martin
for their contributions American Express, VP global emerging payments and strategy
to this report: Brian Greehan

Global Payments, head of B2B solutions
Silvana Hernandez
Mastercard, EVP product and engineering
Dannell Mastrean
TSYS, EVP strategic accounts
Adam Mitchell
Global Payments, EVP product, technology and enablement
Mark Smith
Amazon Web Services, head of payments and market development
Guido Sacchi
Global Payments, SEVP and chief information officer
Luc Teboul
Goldman Sachs, partner, transaction banking engineering
Kate Weiler
Discover Global Network, director payment risk services
Latha Youngren
Tripleseat, CMO
48
SOURCES
1. McKinsey & Company, June 2023. The economic potential 18. Security Magazine, February 2022. Over 22 billion records 35. Technode, August 2023. TikTok continues Amazon-life
of generative AI: The next productivity frontier. exposed in 2021. push into commerce with fulfillment services in the UK.
2. McKinsey & Company, June 2023. The economic potential 19. Identity Theft Resource Center, January 2023. 2022 data 36. ModernRetail, February 2023. Live shopping promises
of generative AI: The next productivity frontier. breach report. stronger brand-consumer connections in 2023.
3. Computer Weekly, July 2023. How generative AI fuels 20. Dataprot, July 2023. Credit card fraud statistics: What are 37. MarketSplash, September 2023. A deep dive into Twitch:
customer experience programmes. the odds? 100+ statistics for 2023.
4. Fintech Magazine, May 2023. Will generative AI usher in a 21. AWS, Fraud graphs on AWS. 38. Street Fight, July 2023. Amazon leans into livestream
new era for fraud detection? shopping to promote Prime Day deals.
22. Cybersecurity infrastructure and security agency, More than
5. Fintech Magazine, May 2023. Will generative AI usher in a a password. 39. Walmart, Live.
new era for fraud detection?
23. Zippia, February 2023. 17 essential multi-factor authentication 40. McKinsey & Company, July 2023. Ready for prime time?
6. Amazon, September 2023. How generative AI helped train statistics. The state of live commerce.
Amazon AI to recognize your palm.
24. Discover, Enable solutions to enhance customer experience. 41. TotalRetail, January 2023. A new threat for retailers: The rise
7. Fintech Weekly, April 2023. The growing foothold of of the synthetic shopper.
embedded payments. 25. Android Police, November 2022. Everything you need to know
about livestream shopping. 42. Exploding Topics, April 2023. Worldwide daily social media
8. PYMNTS, August 2023. Visa’s PayFac strategy eyes usage (New 2023 data).
embedded payments’ potential in blue and red oceans. 26. Forrester, November 2016. What’s new for 2016 Singles’ Day:
Live streaming, VR and AR. 43. University of Maryland, September 2017. Do social media
9. Fintech Weekly, April 2023. The growing foothold of users do more online shopping?
embedded payments. 27. The New York Times, April 2023. The shining promise and
dashed dreams of China’s live shopping craze. 44. B2BPay, September 2021. Gamification in payments.
10. Transcard, August 2021. 6 ways payees benefit from
mbedded payment solutions. 28. CNBC, June 2023. Livestream shopping booms as small 45. Juniper Research, December 2022. Contactless payments:
businesses strike gold on social media. Key opportunities, emerging trends and market forecasts
11. Financial Times, May 2023. Starbucks: Wake up and smell 2022-2027.
the deposits. 29. Dynamic Yield, The average shopping card abandonment
rate globally is 71.61%. 46. B2B Payments, September 2021. Gamification in payments.
12. FXCintelligence, September 2023. Mercedes pay+: Turning
the car into a payments device. 30. Fit Small Business, September 2023. 37 shopping cart 47. AWS, August 2022. Elevate your retail experience with Just
abandonment statistics to know for 2023. Walk Out technology.
13. Ptolemus Consulting Group, March 2023. Connected vehicle
payment global study. 31. The New York Times, April 2023. The shining promise and 48. ChaseDesign, March 2023. The American Express shop
dashed dreams of China’s live shopping craze. creating an autonomous checkout experience.
14. Payments Hub, May 2023. Benefits of embedded payments.
32. WARC, 2023. Retail’s balancing act. 49. PRnewswire, July 2023. ITRI and 7-Eleven introduce new
15. LexisNexis Risk Solutions, The true cost of fraud. unmanned “X-STORE Y”.
33. The Paypers, August 2023. CommentSold partners
16. Payments Dive, December 2021. Card industry faces $400B with TikTok. 50. PYMNTS, August 2023. 7-Eleven Australia taps frictionless
in fraud losses over next decade, Nilson says. checkout as shoppers demand convenience.
34. Technode, June 2023. TikTok forges US warehouse
17. Card Not Present, August 2022. Each 1% of fraud loss actually partnership to enhance e-commerce operations: report.
costs merchants 3.75%, says report.
49
About us
Global Payments Inc. (NYSE: GPN) is a leading payments

technology company delivering innovative software and services
to our customers globally. Our technologies, services and team
member expertise allow us to provide a broad range of solutions
that enable our customers to operate their businesses more
efficiently across a variety of channels around the world.
Headquartered in Georgia with approximately 27,000 team

members worldwide, Global Payments is a Fortune 500®
company and a member of the S&P 500 with worldwide reach
spanning over 170 countries throughout North America, Europe,
Asia Pacific and Latin America.
For more information, visit globalpayments.com and

follow Global Payments on X (@globalpayinc), LinkedIn,
and Facebook.
©2023 Global Payments Inc. All rights reserved. All other trademarks, product names, and
logos identified or mentioned herein are the property of their respective owners. (011/2023)
Innovation that delivers.

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20

Artificial Live commerce

Embedded Next gen digital

Global insights from the experts

AI’s emergence as a leading business driver is clear.

The AI revolution: As big as the internet?

In commerce, generative AI could rewrite the rules. According to McKinsey, this

“Virtually every business is trying to understand how to incorporate

And organizations are recognizing the opportunity.

• Sixty-one percent of companies surveyed are enthusiastic about the impact of AI on

AI is a business force multiplier

• AI-powered biometrics helps speed customers through checkout.

• AI offers the potential to greatly increase the accuracy of fraud detection.

• AI-supported API integrations are faster and less labor-intensive.

Why generative AI is transformative

Here’s how businesses are putting generative AI to work.

Boosting customer support. Chatbots have become commonplace customer service

“I think you’re going to see a huge reduction in call volume at

Delivering friction-free payments and authentication. Amazon’s “pay-by-palm”

“Every time we get a big, fundamentally

Generative AI tools are already finding their

The pandemic pushed millions of consumers to rely on

Meeting consumers where they are

Why the technology matters

That work in the background translates into a transformed customer experience.

“This is what we call contextual commerce, allowing the business

• Forty-four percent of businesses said embedded payments would be extremely

“No longer do I stand in line to order: Payments are embedded, and

In the background, creating deeper

One example of this is in personal vehicles, as companies like Mercedes-Benz are

Of course, the advantage of offering embedded payments is not just about

Tap into the convenience

Digital, mobile and social commerce channels promise

Customers expect privacy

• Sixty-two percent of businesses say reducing the amount of payment fraud is an

New threats, new responses

“The concept of continuous authentication to verify identity throughout an entire session,

How technology is changing the game

“Generative AI is particularly powerful in training your existing fraud

“Fraudsters are going to be aggressive in leveraging these models because they’re

How businesses are fighting fraud now

authentication to accurately verify their identity can be extremely effective in blocking

Network Tokenization: Network tokenization is a vital part of secure digital payments,

“Network tokenization was introduced in the market some years

• Six percent more businesses are considering introducing tokenization in 2024

Behavioral biometrics: AWS is working to detect fraud by pioneering new

For businesses ranging from SMBs to The challenge is to leverage technologies

Nearly a decade after it debuted in China, live commerce

A regional sensation goes global

Will others follow Asia?

Live commerce, in numbers

Big players getting into live commerce

A clear opportunity, with some risks

Consumers have come to appreciate how various

Making commerce memorable

Speeding the customer through checkout

Phone-to-phone contactless payments: According to Juniper Research, contactless

“Phone-to-phone payments are going to drive a lot of change on

Autonomous checkouts: A form of cashierless checkout, autonomous checkout

Surprise is a selling point

• A global online survey that included 541 respondents

• Research compilation and analysis of existing data sources,