With the new year just two weeks away, it’s a good time to reflect.
We spoke with Justin Passalaqua, Chief Market Officer of North America for Worldline, on what he has seen in the payments space this year and the payments trends he anticipates taking over in 2022.
Were there any payments trends that emerged this year that you didn’t expect to see?
Justin Passalaqua: I wouldn’t say any trends caught me by surprise necessarily. However, I did not expect how quickly businesses started adopting payment methods like contactless, e-commerce, and order ahead payments.
These trends have been in the works for a while. But the accelerated growth of these payment methods due to the pandemic, I think, caught everyone off guard. Not only have we seen tremendous growth in contactless and online payment options, but the more we see these used in the market, the more enhancements are made to make payments seamless.
How have embedded payments altered the course of fintech thus far?
Passalaqua: Users can make payments anywhere, at the touch of a button and, as a result, the industry has seen an increase in conversions by almost 40%. The fewer steps it takes a user to make a payment, the more likely they will complete a purchase. And if they have a great experience shopping with a merchant, they are more likely to shop there again.
Loyalty has become a huge growth driver, especially in the order ahead/food industry. The rise of mobile apps makes it easy for businesses to offer more rewards for repeat customers, establishing trust between the business and consumer. When software and app providers implement the right tools that simplify the checkout process and strengthen loyalty, everyone benefits.
What payments trends do you anticipate dominating in 2022?
Passalaqua: One trend I have seen a lot of over the years that I expect will evolve in 2022 is Integrated Software Vendors (ISVs) building their own payment gateway or leveraging a Payments-as-a-Service (PaaS) platform and white labelling it with their own brand. As ISVs aim to be an all-in-one solution for their customers, owning the end-to-end payments piece essentially transforms them into a payment provider.
Another trend that will continue to dominate next year is the further decline of cash and the increased adoption of cards and mobile wallets. In 2021 we saw a 12% global decline in cash payments due to COVID-19. People will continue to adopt card and mobile wallets at a faster rate, and not just for safety and sanitary reasons. With the more rapid and convenient experience offered by cards and mobile wallets, we will probably never see a backwards shift to cash again.
What’s in the pipeline for Worldline in 2022 and beyond?
Passalaqua: Without giving away our secret recipe, we have big plans for expansion next year. First, we are investing heavily in the U.S. market. Although Bambora and Ingenico are well known in Canada and the U.S., Worldline is relatively new to North America. Our goal is to make Worldline a trusted household name for ISVs and the payments industry.
We are also focusing on growing our contactless/card-present payment solutions with new technologies to make card-present payments even more effortless. We are enhancing our bank-to-bank technologies to expand our payment types, focusing on our ACH solution, which aligns with our plans for the U.S. market.
Photo by Mark OFlynn on Unsplash