Trends in payment methods: the digitalization and democratization of consumer payments

Afi has collaborated, for the fourteenth consecutive year, in the development of Nuek Report on Trends in Payment Methods. One of the trends addressed in this edition of the report is linked to advances in the penetration and transformation of digital payments in Europe and Latin America, based on the analysis of thirteen countries.

In a continuous environment evolution to respond to consumer needs and preferences, the increasing use of digital payment methods, favored by its contribution in terms of agility, security and inclusion, is in line with the preferences indicated by users. However, transformative potential still exists, given the difficulties experienced by many individuals in choosing the payment method of their choice, as well as the existing path to continue to incorporate digital payments into small amount transactions.

The transformations also reach the user identification and authentication systems, and are projected onto technologies that reinforce security and improve the experience of these users (biometrics, tokenization,...). Thus, for example, the possibility of having a unique digital identity is clearly supported by consumers (60% of the European banking population and 70% of the Latin American banking population), both for reasons of security and convenience for the use of multiple payment methods, and for national and international transactions.

Contactless payments continue to grow, also through the use of smart devices, also pointing to a trend in which the experience Contactless Expand beyond retail payments.

All these transformations, towards greater digitization and democratization of consumer payments, offer certain peculiarities depending on the geography and profile of consumers, which are included in the Report.

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