51 Key Online Payment Software Statistics You Must Learn: 2024 Data Analysis & Market Share - Financesonline.com (2024)

As businesses and the public switch from cash to online payment methods, the payments industry faces a bold change as it prepares itself for an optimistic future. At present, lockdowns, strict health protocols, and continuous health concerns have drastically transformed our daily lives, especially our spending habits. The COVID-19 pandemic has already expedited the digitization of the payments industry by two to three years (Insider Intelligence, 2021).

In this article, we will explore how organizations take advantage of payment gateway software, the online payment software statistics that matter, upcoming trends, and other vital information about the payments ecosystem.

COVID-19 Impact Statistics

This year’s findings from McKinsey’s Digital Payments Consumer Survey revealed a prevailing trend: 4 in 5 Americans used some form of online payment system. The survey also reveals some new online payment method statistics trends, such as cryptocurrency and “buy now, pay later” (BNPL) (Goel et al., 2021).

• COVID-19 shopping amounted to an extra $174.9 billion in US ecommerce profit in 2020 (Digital Commerce 360).
• During the 2020 second quarter, ecommerce revenue grew 31.9% (Digital Commerce 360).
• Nearly a quarter of traditional stores created ecommerce stores to cope with COVID-19 restrictions (OECD, 2020).
• Worldwide, 63% of online users said that they were shopping more groceries online or via mobile devices than pre-COVID-19. Eighty-six percent of them said that they would most likely continue online shopping post-COVID-19 (PwC survey).
• Sales of electronics ecommerce surged to about $179.4 billion as Americans depend on online services for school, work, or leisure (eMarketer).
• Home furnishings and furniture soared to $92.3 billion as Americans became focused on home improvement (eMarketer).

Carrying online rewards despite a few setbacks

• 82% of Americans use online payments, which include in-app digital purchases, in-store checkout via a phone or QR code, and person-to-person (P2P) payments. This result surpasses 2020’s 78% and 72% of 2016 (McKinsey Digital Payments Consumer Survey, 2021).
• Omnichannel use of online payments still experiences a solid increase despite experiencing a decline from its all-time high of 58% in 2020 (McKinsey Digital Payments Consumer Survey, 2021).
• Digital payments showed promising growth in 2021 due to pandemic-linked activities (McKinsey Digital Payments Consumer Survey, 2021).
• In-app payments also have the biggest age variance, having adoption percentages higher for ages 18 to 34 year-olds than for 55-year-olds and above (McKinsey Digital Payments Consumer Survey, 2021).

New trends on the rise: BNPL and crypto

• 30% claim purchasing via BNPL; however, this share is only 3% higher than last year (McKinsey Digital Payments Consumer Survey, 2021).
• Another 30% admit that they prefer BNPL to a credit card, while the other 31% say that BNPL is their alternative option to cash or a debit card (McKinsey Digital Payments Consumer Survey, 2021).
• Up to 20% of responders indicate that they would not have made those purchases if not for BNPL (McKinsey Digital Payments Consumer Survey, 2021).
• One in five Americans discloses holding or having held cryptocurrencies (McKinsey Digital Payments Consumer Survey, 2021).
• 74% of Americans know what crypto is but do not hold one (McKinsey Digital Payments Consumer Survey, 2021).
• 41% of Americans say that a lack of understanding of crypto is the main reason why they have not held crypto (McKinsey Digital Payments Consumer Survey, 2021).
• 43% of previous and present crypto holders say that investment potential motivates them (McKinsey Digital Payments Consumer Survey, 2021).
• One-fifth of crypto holders cite a lack of trust in the US dollar, banks, and government as their motivating element (McKinsey Digital Payments Consumer Survey, 2021).

The case of digital wallets

• 15% of Americans go out without their physical wallets (McKinsey Digital Payments Consumer Survey, 2021).
• 11% of online wallet users say that they think of using it only when there is no other choice left or when they know that they can use it (McKinsey Digital Payments Consumer Survey, 2021).
• With reference to China online payment statistics, 61% of Chinese consumers opted to use e-wallets in 2021 (Internet Retailing, 2021).

Digital payments in the US (by brand)

• 89% of Americans used PayPal in the last 12 months (Statista Digital Shopping Behaviour Survey, 2021).
• 30% of Americans used Venmo in the past year (Statista Digital Shopping Behaviour Survey, 2021).
• 21% of Americans used Apple Pay for their transactions (Statista Digital Shopping Behaviour Survey, 2021).
• 20% of Americans purchased items via Amazon Pay (Statista Digital Shopping Behaviour Survey, 2021).
• 16% of Americans pay for goods using Visa Checkout (Statista Digital Shopping Behaviour Survey, 2021).

It is no surprise that younger Americans are leading the way in purchasing goods online. The convenience of online shopping, free return policies, and other perks are just some of the reasons why it is now more favored than in-store shopping (Caldwell, 2021).

Top 5 Payment Gateway Software

1. Stripe is a cloud-based all-in-one payment platform that accepts major credit and debit cards as well as digital wallets.
2. PayPal Payments Pro is a payment processing solution that allows merchants to accept credit card payments online and host their own checkout pages.
3. 2Checkout offers global availability in over 200 markets, so you can enjoy localized options for selling in the customer’s language and currency.
4. Amazon Payments make it faster and more secure for customers to shop at your Amazon store.
5. PayU has a direct connection to local acquirers, plus an in-house anti-fraud system aside from facilitating online payments.

Digital Audience Demographics

According to GWI, Baby Boomers are less likely to use the internet for ecommerce purposes (75.6% female; 71.9% male) than Gen Z (77.7% female; 72.6% male) and Millenials (79.9% females and 76.6% males aged 25 to 34; 79.9% females and 77.9% males aged 35 to 44).

Yet, it is evident that ecommerce has its ubiquitous drawing power, whatever the age or gender of the internet users is. Also, online shopping presents another opportunity for nearly all providers, no matter the classification or target market. However, how age groups shop online differs from each other (Kemp, 2021).

• 63% of female users aged 16 to 24 rely on mobile ecommerce, while only 55.8% of male users of the same age range do so (GWI, 2021).
• 8% of female users aged 25 to 34 buy goods via their mobile devices, while male users of the same age group only comprise 58.1% (GWI, 2021).
• The percentage of 35- to 44-year-old female users depending on mobile ecommerce is 40.5%; for the males, it is 55.4% (GWI, 2021).
• Female users in the age bracket of 45 to 54 make up mobile ecommerce percentage by 51%, while it is 46.9% for the males (GWI, 2021).
• 38% of female users aged 55 to 64 use mobile ecommerce, while 35.8% of male users of the same age range do the same (GWI, 2021).

Researching the product that you are about to buy is necessary. Based on another GWI survey, older age groups research the products they are about to buy the most via the internet.

Voice Command Statistics

Voice command tools are the most well-known substitute for text-supported search tools. Siri and Google Assistant, the ever-famous mobile phone digital assistants, make up the preponderance of this voice trend (Kemp, 2021).

These tools have also become the go-to option of many consumers as ordering groceries, hailing a cab, playing music, and searching for information can all be done with a simple voice search.

• 45% of worldwide internet users have used voice commands (Data Reportal Digital 2021: Global Overview Report).
• Voice ecommerce will increase by $80 billion each year by 2023 (Juniper).
• 51% of online users use voice search to look for products (Net Solutions, 2021).
• Almost 5.5 million American adults shop online with their smart speakers on a regular basis (Net Solutions, 2021).
• 75% of American families will have their own smart speakers by 2025 (Statista, 2021).

Credit Cards Statistics

Credit card payments are expected to increase to $1.82 trillion in 2024, indicating a CAGR of 0.79%. Strong rewards systems and high credit demand are predicted to broaden as users strive for top-of-wallet payments services. These factors will then lure spending and aid the segment’s growth, but escalation will be slower than inflation (Insider Intelligence, 2021).

Social Networking Sites Statistics

The emergence of social search is another interesting standpoint in the changing trends in online payment transaction statistics (Kemp, 2021).

• About 45% of global consumers look for product and service information on social networks (Data Reportal Digital 2021: Global Overview Report).
• Gen Z’s (53.2%) research brands on social networks more than Millenials (25- to 34-year-olds: 48.2%; 35- to 44-year-olds: 42.4%) (Data Reportal Digital 2021: Global Overview Report).

User Ecommerce Statistics

Ecommerce growth is now propelled by consumers, who are used to spending on online purchases. Online payment statistics 2021 indicate that speedy and free shipping and considerate return policies appeal to them the most (Caldwell, 2021).

• Many online buyers look forward to receiving their purchases on the same day or the next day. 39% of them said that same-day deliveries would make online shopping more advantageous for them (Walker Sands).
• 46% of online users say that they are willing to buy costly products online, such as a car (Walker Sands).
• 3% of Millenials, 49.2% of Gen X, and 36.8% of Baby Boomers are likely to buy furniture online (Furniture Today).
• 6 minutes and 6 pages per visit are the average duration of online users on ecommerce and shopping sites (Similarweb, 2021).
• During the 2020 holiday season, Americans spent approximately $201.3 billion online: 56% online shopped on Cyber Monday, 57% on Black Friday, and 24% on Thanksgiving.

Nevertheless, the internet experience for some consumers can still get problematic. While less than a third of them affirmed that everything went well during their 2020 holiday online shopping, a significant percentage experienced some setbacks.

Mobile Commerce as the New Norm

Consumers turn to the internet to purchase their needs due to the abrupt shutdown of many physical stores across the world to halt the spread of COVID-19. Industry leaders state that the pandemic hastened the move to digital shopping.

Mobile commerce, also known as m-commerce, entails shopping online using a mobile device such as a smartphone. Mobile commerce will prevail to be a trend over the coming years. Innovations in technology make it more convenient for many people to find things on their phones, in just a few clicks (Keenan, Shopify), something that will affect much of online payment software statistics ahead.

• Mobile commerce sales reached $2.91 trillion in 2021 (Oberlo).
• Mobile commerce growth in 2021 increased 29.8% compared to 2016 (Oberlo).
• Mobile commerce will grow further as the number of mobile users is presently at 5.22 billion (Data Reportal Digital 2021: Global Overview Report).
• American consumers spent 234 minutes on their mobile devices in 2021 (Oberlo).
• Mobile commerce share has reached 72.9% in 2021 (Oberlo).
• Almost 3 out of every 4 dollars spent on digital shopping today is performed via a mobile device (Oberlo).

AR and Online Shopping Statistics

With augmented reality (AR), online shoppers can actually take a look at and feel the product they are about to buy without personally going to stores. This innovation helps consumers make fast and better-purchasing decisions and improves their general retail experience, especially in the fields of fashion and home décor (Bigcommerce).

• 35% of consumers say that remotely trying on a product could convince them to shop online more (1Digital Agency).
• 22% of shoppers would be less likely to personally visit a traditional store if their preferred store has its own AR (1Digital Agency).

The Future Looks Bright With Online Payment Schemes

COVID-19 has indeed paralyzed some forms of conventional spending, but the new online payments statistics and trends are approaching a much wider scope of options. New innovations are also coming into the picture and demonstrating a boom. The end to the pandemic is still unclear, but online shopping and other technological advancements that people have depended on during these tough times are here to stay on a vaster scale (Goel et al., 2021). Technological innovations, the threat of further unknowns like a pandemic, and consumer guardedness will all play to change the online payment software statistics in the future.

If you want to learn more about payment gateway providers, you can check out these 20 best payment gateway providers.

References:

1. Bigcommerce, (n.d.). Ecommerce Trends That Are Powering Online Retail Forward. Bigcommerce.
2. Caldwell, A. (2021, April 15). 67 Ecommerce Stats and Facts to Know in 2021. Netsuite.
3. Goel, V., Mahajan, D., Nadeau, M., Sperling, O., & Yeh, S. (2021, October 26). New trends in US consumer digital payments. McKinsey.
4. Insider Intelligence. (2021, July 29). The payment industry’s biggest trends in 2021—and the pandemic’s impact on digitization in the payments landscape. Insider Intelligence.
5. Kaushal, D. (2021, June 22). How Voice Search will Transform the Future of Ecommerce. Net Solutions.
6. Keenan, M. (2021, May 13). Global Ecommerce Explained: Stats and Trends to Watch in 2021. Shopify.
7. Kemp, S. (2021, January 27). Digital 2021: Global Overview Report. Data Reportal.
8. Kunst, A. (2021, August 24). Online payments by brand in the U.S. 2021. Statista.