In a new report from Capgemini Research Institute, non-cash transaction volumes in North America are projected to increase by 6.4% this year, reaching $252.6 billion, with global growth expected to rise even faster at 16.6%. By 2028, the North American figure will grow by 7.3% to $338.3 billion. The report highlights that credit and debit cards will dominate global cashless payments by 2028, with instant payments gaining momentum as the second-largest category. Digital wallets are expected to account for 61% of e-commerce transactions and 46% of in-store payments by 2027, while credit card usage is predicted to decline.
Why it matters: The shift away from cash is accelerating, with digital wallets and instant payments gaining ground on traditional payment methods. The transition away from cash and the rapid growth of digital wallets, instant payments, and other electronic methods suggest that consumers will increasingly expect more convenient, secure, and flexible payment options. Collection agencies, debt buyers, and financial institutions will need to adapt to these trends by integrating these payment methods into their systems.
Between the lines: The B2B payments landscape is evolving alongside consumer trends. In North America:
- B2B non-cash transactions will grow 7% this year to $56.2 billion.
- By 2028, B2B cashless payments are projected to reach $75.5 billion.
Debit and Credit Dominance: Half of all global non-cash transactions will be made using credit and debit cards by 2028. However, the rise of instant payments, projected to capture 22% of the market, offers debt collectors an opportunity to accelerate payment processing and improve efficiency.
Digital Wallets Are Surging: The growth of digital wallet transactions, both for e-commerce and in-store payments, signals a shift in consumer behavior. Debt collection professionals should consider integrating digital wallet options into their payment platforms to meet evolving consumer expectations.
Real-Time Payments for Faster Settlements: The report underscores the importance of real-time payments and open banking, which are becoming critical in the financial sector. These innovations allow users to move funds more quickly and easily between accounts. This presents an opportunity for debt collectors to receive payments faster and reduce transaction delays.
- Instant payments not only reduce the risk of fraud but also eliminate the typical delays associated with traditional payment methods, making them an ideal solution for time-sensitive collections. FedNow, a newly launched real-time payment service in the U.S., already has hundreds of participating banks and credit unions and could be a key component for agencies looking to enhance their payment systems.
