How the World Does Digital: A Deep Dive Into Global Digital Engagement
Hey Payments Fanatic!
As "buy now, pay later" (BNPL) options become increasingly prevalent globally, Australia is leading the way by a significant margin according to a PYMNTS Report .
In the latest edition of the "How the World Does Digital" report the survey gathered data from 67,000 consumers across 11 countries, representing about half of the world’s gross domestic product, to assess their digital engagement habits.
The findings revealed that a small fraction of consumers used BNPL for their most recent eCommerce purchase — approximately 1% in most surveyed countries.
In the U.S., only 0.9% of consumers reported using BNPL for their last online purchase. In contrast, this figure nearly triples in Australia, where 2.5% of consumers utilized BNPL services.
Australia’s adoption rate is the highest, followed by the Netherlands at 2.1%.
The Data in Context
BNPL services like Afterpay and Sezzle originated in Australia and quickly gained traction. This early introduction allowed Australian consumers more time to integrate BNPL into their shopping routines compared to their U.S. counterparts.
However, Australia is now tightening regulations on BNPL services. A recent Reuters report highlighted that the Australian government has proposed a law requiring BNPL firms to check users' credit.
Enjoy more payments industry updates I listed for your below and have a great start to the week!
Cheers,
INSIGHTS
South Africa: A Hub for Payments Innovation.
Let's dive into South Africa’s Payments Ecosystem:
PAYMENTS NEWS
🇺🇸 Plaid got its start as a company that connects consumer bank accounts to financial applications but has since been gradually expanding its offerings to also include lending, identity verification, credit reporting, anti-fraud and payments. More here
🇰🇼 NBK introduces “WAMD” instant payment service on its mobile banking app. The instant payments system (WAMD) provides added value and quality to the national payment infrastructure capabilities. It offers a safe, advanced payment option for various customer needs, advancing digital transformation in Kuwait.
🇦🇺 Australia outpaces US in online BNPL adoption nearly 3 to 1. As buy now, pay later (BNPL) options become more common around the world, the Land Down Under is leading the charge by a considerable margin, according to a recent PYMNTS Intelligence report.
🇬🇧 UK Finance releases Dedicated Card and Payment Crime Unit Report. The unit is described as being “a unique, proactive and fully operational police unit with a national remit to investigate, target and, where appropriate, arrest and seek successful prosecution of offenders responsible for card and payment fraud crimes.”
🇩🇰 Trust Payments powers Freepay PayOut service in the Nordics. With the new agreement, Freepay will enable its customers to process fast and secure payouts with Visa and Mastercard via the TRU Connect Gateway. Read more
🇺🇸 Nium appoints Spencer Hanlon to Chief Operating Officer. In his new role, Hanlon will lead and scale Nium's day-to-day operations into its next phase of growth, with particular emphasis on new client onboarding, global technical services, and long-term strategic initiatives.
🇨🇦 Buy Now, Pay Later Sezzle expands payment streaks program to Canadian users. This program empowers Sezzle users by introducing a gamification approach to responsible payment behaviors. Each successful payment made on or before its scheduled due date contributes to the user’s payment streak.
🇺🇸 Alex Hoffmann has been appointed General Manager of Edenred Pay, North America. Hoffmann brings three decades of experience in scaling payments and driving innovation to Edenred Pay North America, leading the growth of its market-leading Invoice-to-Pay solutions.
🇧🇷 Onnipro partners with Euronet to enhance card issuing and payment processing in Brazil. Onnipro will use Euronet’s Ren payments platform to expand its card issuing capabilities for Visa and Mastercard networks as part of this multi-year agreement.
🇺🇸 Coinbase + Stripe team up to expand global adoption of crypto. The companies have announced a partnership to increase onchain adoption and provide faster, cheaper financial infrastructure. Click here to learn more
🇩🇪 Amazon Pay will soon be discontinued for Shopify shops in Germany. Continue reading
GOLDEN NUGGET
The perfect date/a does exist in Payments:
The perfect date/a does exist in Payments:
What is Payment Orchestration:
Payment orchestration is a software solution that connects merchants to multiple PSPs, acquirers, payment partners.
It unites most aspects of the online payment process in one place, including payment authorization, transaction routing, reconciliation, payouts, ledgers, analytics and payment settlement details.
The purpose is to remove complexity for merchants by enabling them to take advantage of working with multiple PSPs and route payments based on a variety of factors, including:
► Payment processor availability
► Best fee conditions
► Highest authorization rates
► Locality / Currencies
► Local Payment Methods
► etc...
Connecting to multiple providers can help protect against failed payments and reduce costs BUT an Orchestrator remains the potential point of failure.
Though a Payment Orchestrator is a crucial part of any good payment infrastructure, not all solutions on the market include important features like:
👉 Native Token Vault Storage
👉 Payment analytics
👉 etc…
Businesses, especially enterprise merchants with high transaction volumes, should both look:
1️⃣ All-in-one: Beyond payment orchestration for providers that cover the entire spectrum of payment
2️⃣ Mitigate Risk by storing their Payments Data (the most crucial component of any transaction) in a specialized external Token Vault. Worst comes to worst, if an Orchestrator or PSP fails, your payments data is available and ready to be used by alternative providers.
What is Tokenization in Payments:
Tokenization is the process of replacing your personal payments information (not only) with a token stored in a PCI-Compliant token vault owned by the token creator, which can be an acquirer, issuer, 3rd party token vault & network or payment processor.
In simple terms, it’s taking consumers & merchants payments DATA, placing that into a token and storing that in a secure and accessible location.
Benefits of Tokenization:
🔸 Ensure PCI DSS compliance
🔸 Control costs
🔸 Increase payments efficiency
🔸 Reduce the risk of data breaches
🔸 Improve the customer experience
Orchestration 🤝 Tokenization Providers:
Ultimately, everything is about data. You need your payments data to be securely stored and accessible at will.
It is the foundation of all transactions globally. While Payment Orchestrators route payments to multiple PSPs, Tokenization providers’ route your payments data to Orchestrators, PSP and any company in payments.
An Orchestrator is a great-to-have solution, bringing flexibility and speed to market.
A Tokenization Provider, is a must.
Both together, that’s flexibility, cost efficiency, redundancy and a scalable payment infrastructure.
Source: Payrails & ACI Worldwide
And I highly recommend following my partner at Connecting the dots in payments... Arthur Bedel 💳 ♻️ for more great updates like this one👌
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