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The events of the last few years have led to a monumental shift in the way we consume goods, services and experiences. But now, customers are keen to get back to spending.
And as demand returns, the already supercharged journey to digital could accelerate again. Our research reveals that consumers are already becoming more interested in next-gen payment options – the future of spending is on our doorsteps.
How should you
What do
want to spend their money on?
But what does that mean for
How do they want to
How is consumer behavior in your sector
In August 2021, we conducted research exploring changing attitudes towards the evolving payments landscape across a range of sectors. Our total survey sample included 4,023 consumers over the age of 18, living in Australia, Brazil, Singapore, the U.K. and the U.S.
Here's what we found.
To see the results for your market or sector, select it from the menu below, or head straight to our 'Three visions for future payments'.
3 visions of future payments
Learn more
Hospitality
Health and well-being
Travel
Investing
Online content and services
Electronics and apparel
Gaming
Groceries
Home improvements
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Payments 2025 is a thought leadership campaign launched by Worldpay from FIS to highlight the key trends shaping the future of payments. Using our many years of experience and leveraging our vast network of specialists from across the payments industry and beyond, we will share expert opinions and recommendations as well as explore the social, economic, technological and environmental factors that will inform the future and help our merchants to prepare for tomorrow.
While more consumers indicated they would spend on hospitality in the 12 months following our research, businesses need to adapt to changes to their payment preferences.
A BRIGHTER FUTURE FOR RESTAURANTS AND BARS
Of any studied sector, our research indicated that restaurants and bars would see the biggest growth in spending over the following 12 months.
33%
This was already the
second most popular
way for consumers to spend money, behind grocery spending
of people we asked expected to be drinking and dining out more in the following 12 months
Across our study, three countries saw the highest spend in hospitality:
U.K.
Singapore
U.S.
Next
Credit card
40%
Consumers said that the most popular payment methods when dining out included:
Debit and prepaid card
36%
Direct debit and autopay
24%
Online spend
Expectations are changing. While restaurants will be pleased to see their customers returning, they must now adapt to the new ways in which people want to pay.
What will future diners expect?
Return home
Read the full Generation Pay report
Next sector: Travel
Consumers in Singapore were particularly keen to spend on dining out, and
said it was something they wanted to spend more of their money on in the 12 months following our research
62%
Prev
closely followed by U.K. consumers at
49%
U.S. consumers were second, at
48%
35%
39%
In-person spend
of consumers surveyed said it was important for restaurants, bars and cafés to offer a loyalty program. If consumers choose your business as a favorite, they will expect to be seen as a favorite in return. Restaurants of the near future may be using consumer data to a much greater extent. They could potentially identify big spenders, return customers or locals, and offer them a more tailored experience. Customers of the future may take advantage of powerful, bespoke apps that replace or extend existing loyalty schemes.
54%
A truly tailored experience
There is a growing interest in ‘just-walk-out’ or checkout-free technology across hospitality, retail and beyond. Almost half of consumers surveyed, across all sectors, were interested in this technology, with already taking advantage of it.
10%
Forget the check
1 Lunden, I (2022) Starship Technologies picks up €50M from the EU’s investment arm to expand its fleet of autonomous delivery robots. TechCrunch. [Online] Available at: https://techcrunch.com/2022/01/25/starship-technologies-picks-up-e50m-from-the-eus-investment-arm-to-expand-its-fleet-of-autonomous-delivery-robots/ [Accessed 25 Jan. 2022]
Drive-through revolution
In-car payments, or v-commerce, could radically reinvent how we pay for items such as food and drink. This technology turns vehicles into payment tools using linked accounts. Whether payment is initiated by voice command or simple proximity, v-commerce could unlock more seamless experiences in the drive-through. As just one example, if a vehicle is driven to a particular fast food restaurant multiple times in a month, the establishment’s app could automatically add loyalty reward points to the driver’s account.
Encrypted payments could also be integrated into the apps themselves, enabling consumers to order ahead, reorder, book tables, check out and earn rewards all from one interface. Consider the possibilities in terms of accommodating preferences or allergies. Prefer a steak well done? Your favorite restaurant’s app could already know and include this in your order. Need to avoid gluten? Your local café’s app could ensure you do not get the wrong pastry. Data could help hospitality to transform.
Imagine not having to request a check at the table or pay at the bar. Instead, you just walk out after finishing your meal and your payment is debited from your linked account. Biometric authorization could come into play here, with a fingerprint scan or facial recognition replacing traditional card payment. However, due to identity theft, some consumers raised privacy and security concerns about this technology, especially in Australia and Singapore.
But if drive-through meals are too much hassle, consumers could soon expect food to come to them. Drone delivery has already taken off in a number of cities across the U.K. and U.S., with the potential to evolve how we order food and drink even more over time.¹
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As lockdowns and restrictions lift, consumers are starting to reinvigorate the travel market. Although consumer motivation is there, you could still benefit from new ways to stimulate spend and overcome remaining challenges.
new horizons for travel
1/3
3rd
highest category in terms of attracting spend, behind groceries and dining out
of consumers surveyed (32%) planned to spend more on travel, holidays and experiences in the 12 months following our research
The world of travel payments is changing fast.
There is no denying that the travel sector is still relatively vulnerable to change. However, changes in consumers’ payment preferences may help your organization identify ways to encourage spending.
Previous sector: Hospitality
Next sector: Groceries
of consumers planning to spend on travel, followed by consumers in Australia (38%)
44%
Of those countries we covered, it was most popular in the U.K., with
and in-person spending:
53%
Credit card was the stand-out favorite for online:
52%
and in-person at:
31%
Followed by debit and prepaid card; online at:
56%
of consumers said they want to earn rewards for their travel spend
1 in 5
travelers said they want to make a purchase directly via social media
25%
Going further for frequent flyers
annually²
Such apps do exist, but the real potential lies in using customer data to create bespoke experiences and rewards for your travelers – knowing their wants and needs before they tell you anything. Imagine walking into a hotel that already knows your preference for softer pillows. Consider how this may become an added revenue stream when you use data to upsell the travel extras you know your customers value most. There is also huge potential to integrate these travel apps with social media. A fifth of the consumers surveyed were expecting to purchase travel, holidays and experiences on social media, up from in the previous year.
14%
Evolutions in virtual and augmented reality (VR/AR) have opened the door to travel-free travel, while social media has given travel providers more data than ever with which to tailor experiences. By embracing VR in the ‘metaverse’, travel companies could create unique experiences to be enjoyed from the comfort of your sofa. Of those we spoke to,
32%
Travel without moving
69%
of people were expecting to spend more on travel in the 12 months following our research,
said they would spend more, or the same, on digital content. This creates opportunities for the two to be combined in new and interesting ways
One large travel agent has already begun to experiment with emotionally intelligent technology to uncover its customers’ true holiday desires. Users are fed images of different locations and their reactions measured to build a perfect trip for them based on their unconscious reactions.³
In-car payments, or v-commerce, could reshape travel for us day-to-day. This technology allows payments to be initiated and completed from inside a vehicle via linked accounts. Whether activated by voice command or proximity, v-commerce could unlock more seamless experiences of travel. Real-time behavior data is already being used to determine insurance premiums for drivers⁴. The v-commerce-enabled vehicles of the future could cut lines at airport parking lots, enabling drivers to bypass tollbooths and head straight to a spot. The same principle could also be applied to paying for fuel, where the fee is debited as soon as the driver starts their vehicle’s ignition after filling up. V-commerce is opening up a world of faster movement, less friction, and maybe even safer roads, as it would eliminate the need to use mobile devices to complete your purchases.
On the road with v-commerce
2 McKinsey. (2021) Next in loyalty: Eight levers to turn customers into fans. [online] Available at: https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/next-in-loyalty-eight-levers-to-turn-customers-into-fans [Accessed 20 Dec. 2021] 3 TUI. (2017) World’s leading travel company reveals the future of holiday shopping with cutting edge prototype that taps into the subconcious [sic]. Available at: https://www.tui.co.uk/press/destination-u/ [Accessed 14 Feb. 2022] 4 Tesla. (2022) Tesla Insurance Using Real-Time Driving Behavior. Available at: https://www.tesla.com/support/insurance/real-time-insurance [Accessed 14 Feb. 2022]
Top-performing travel loyalty programs can already boost revenue from point-redeeming customers by up to Imagine the potential revenue if your business were to succeed in getting all your travelers earning and redeeming rewards. Encouraging sign-up for frequent flyer programs, or similar, might be achieved by removing expiration dates on points, making earning points automatic and allowing socially conscious consumers to donate their earned rewards or points to charity. Travelers expect businesses to understand their preferences. A combined payment/loyalty app could consolidate a customer’s travel profile, needs and requests within one, unified platform.
While many sectors were vulnerable to the uncertainty and volatility of the last couple of years, spend on groceries grew, and the trend looks set to continue. Here’s how your business can capitalize on evolving payment methods to make shopping simpler and cheaper.
Get set for more growth potential in groceries
half
of shoppers surveyed spent more on groceries in the 12 months preceding our research than previously – the highest increase in spending of any market sector
Grocery spend was high across the five countries in our study, but the biggest spenders were in:
Australia
of surveyed shoppers said contactless payments are easier and more convenient (80% in Singapore)
68%
Understanding how people pay for groceries today could reveal the direction of travel for the industry
Today’s shoppers expect more. Whether they just drop by on their commute, have items delivered or buy their groceries weekly, consumers expect a simple payment process and rewards for shopping with you.
Previous sector: Travel
Next sector: Health and well-being
Of the categories surveyed,
of shoppers in both the U.S. and Singapore planned to spend the most on groceries in the following 12 months
73%
More and more shoppers expect to be able to click and collect, and over half want groceries delivered straight to their doorstep. But exactly how they get there may change in the future. While drone delivery may seem novel today, it could quickly become commonplace. This practice has already begun in England and could expand following its success.¹ There is a growing interest in ‘just-walk-out’ or checkout-free technology across retail and beyond. Almost half of consumers surveyed across all sectors said they were interested in this technology, with already taking advantage of it.
Sustainability-minded and innovative delivery
Retailers have already begun to experiment with shopping in the ‘metaverse’. Users explore virtual aisles, selecting items much as they would in a physical store.⁶ We might expect the digital to blend further with the physical over the coming years. Consider the existing example of the ‘smart fridge’, a home appliance that tracks the items it stores, and orders top-ups online to ensure the user never runs out.
The new meaning of “shopping online”
1 Lunden, I (2022) Starship Technologies picks up €50M from the EU’s investment arm to expand its fleet of autonomous delivery robots. TechCrunch. [Online] Available at: https://techcrunch.com/2022/01/25/starship-technologies-picks-up-e50m-from-the-eus-investment-arm-to-expand-its-fleet-of-autonomous-delivery-robots/ [Accessed 25 Jan. 2022] 5 Awards Analyst (2021) Felix climate pop-up showed Swedish shoppers the true cost of their groceries. The Drum. Available at: https://www.thedrum.com/news/2021/12/07/felix-climate-pop-up-showed-swedish-shoppers-the-true-cost-their-groceries [Accessed 14 Feb. 2022] 6 Thomas, L (2022) Walmart is quietly preparing to enter the metaverse. CNBC. Available at: https://www.cnbc.com/2022/01/16/walmart-is-quietly-preparing-to-enter-the-metaverse.html [Accessed 25 Jan. 2022] 2 McKinsey. (2021) Next in loyalty: Eight levers to turn customers into fans. [online] Available at: https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/next-in-loyalty-eight-levers-to-turn-customers-into-fans [Accessed 20 Dec. 2021
Rewarding loyalty
Across all geographies, earning rewards for loyalty is more important to grocery shoppers than any other vertical. Top-performing loyalty programs can boost revenue from point-redeeming customers by up to Imagine the revenue opportunity if all, or even most, of your customers began redeeming points? You can encourage more sign-ups by removing expiration dates on points, making earning points automatic and allowing socially conscious consumers to donate their earned rewards or points to charity. Store membership can also be an effective way to encourage repeat shopping.
Biometric authorization may also become commonplace, with a fingerprint scan or facial recognition replacing traditional card payments. However, some consumers raised privacy and security concerns about this technology, particularly in Australia and Singapore. Sustainability is another major focus in groceries and grocery delivery for our consumers. One Swedish pop-up store now allows its customers to pay for products using carbon dioxide equivalents (CO2e) instead of currency, with prices based on the total climate impact of the product.⁵ Could your business offer customers the opportunity to offset the carbon cost of their shop? If so, consider building this into the payment process.
Grocery shoppers expect their preferred stores to understand them. A combined payment/loyalty app could consolidate your user’s every shopping need, allowing them to order, collect and earn rewards in just a few clicks. Integrating such apps with social media to allow for reviews, social shares and even the gamification of shopping could unlock opportunities to reach and engage your customers.
of shoppers expected to spend the same as the year before
59%
expect to spend even more over the following 12 months
of shoppers wanted groceries delivered to their home
51%
of shoppers said it is important that they can earn loyalty points for their grocery shopping
75%
said they would like a click-and-collect location or curbside delivery
43%
It is possible that our regular grocery shopping may become entirely automated in the near future, with drones delivering items ordered by our smart-home assistants. To explore different options, you might use your VR headset to access a global range that would be impossible to stock in a physical supermarket.
25% annually²
Our research found that, in the 12 months following the survey, the health and well-being sector would continue to attract high spending, as looking after ourselves remains a high priority.
A renewed appreciation for health and well-being
of consumers surveyed said they would spend more on health and well-being over the following 12 months, with 40% expecting to spend the same. This put health and well-being in joint fourth place out of nine categories, along with home improvements, in terms of projected spend. It came in behind:
Brazilian consumers were most likely, of those surveyed, to buy now, pay later (BNPL) for services at every price point. Considering Brazil was also spending the most on health and well-being across the board in this study, this is likely to impact future payment preferences.
42%
Understanding how people pay for their health and well-being products today may influence future trends in industry spending. Credit card remained the most popular payment method for spending in this sector, with:
Health and well-being purchases are often considered an essential element of many consumers’ lifestyles. How we pay for such products and services is changing.
Next sector: Home improvements
Gen Z and Millennials were more likely to use, or be interested in using, innovations and new technologies when making payments. Boomers were generally less likely to change their payment habits. Differences in the demand and need of these two cohorts may well determine the payment methods that dominate the health and well-being sector in the future. Many shoppers (40% of those surveyed) were already interested in the kinds of biometric technologies that facilitate easy, secure payments for them.
60%
Generational change could impact payment preference
Health and well-being products are regularly discussed and advertised on social media. In the U.S., Europe and Japan, of shoppers said they follow influencers and have made purchases based on their recommendations.⁷
Social sales
7 Callaghan, S, et al. (2021) Feeling good: The future of the $1.5 trillion wellness market. McKinsey & Company. [Online] https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/feeling-good-the-future-of-the-1-5-trillion-wellness-market [Accessed 26 Jan. 2022] 8 Luxe. (2020) Why Digital-Native Luxury Brands Are Opening Physical Stores. [online] Available at: https://luxe.digital/business/digital-luxury-reports/digital-luxury-ecommerce-brands-open-physical-stores/ [Accessed 21 Jan 2022]
Embrace the experiential
With around of consumers asked saying they had bought a product online after seeing it in a physical store,⁸ shops are clearly still important to the purchasing journey. Stores could be repositioned as experiential locations, with reduced emphasis on selling products and more on the experience of your brand. Health-focused retailers might, for example, offer workshops, events and exercise classes.
of consumers we asked had reservations about using biometrics, largely around privacy. You can reassure your customers with clear and transparent information regarding data collection.
The key is to ensure that every touchpoint offers a consistent and fulfilling experience to your customer. An omnichannel payment strategy could be central to this.
of the consumers we surveyed had bought health and well-being products via social media. Your health and well-being brand has an opportunity to leverage this trend and enable direct sales via your social channels. Readily available preference data can be used to find out what is trending and to target your offerings.
45%
Previous sector: Groceries
said they would spend more in this category
Restaurants
23%
Of the countries surveyed, Brazil led the way in health and well-being spending.
of Brazilian respondents said they would spend more money on health and well-being, trailing only behind ‘dining out’ at 41% and ‘groceries’ at 60%.
In-store
and online
However, approximately:
10-15%
For many of us, home improvements became a priority during the pandemic – and this trend looks likely to continue. But how people plan their renovations and shop for materials is likely to change as the digital customer experience becomes just as important as the physical.
Make yourself at home with the latest payment tech
Over the 12 months preceding our research,
Hybrid working is here to stay. It is likely that the appetite for home renovations that make our homes more comfortable places to work, live and play will stay as well. But as people kit out home offices and decorate their apartments, what payment opportunities are emerging?
Previous sector: Health and well-being
of consumers were interested in the possibility of in-car payment integration – known as ‘v-commerce’, or ‘vehicular commerce’, with 6% already using it. The payment process for ordering and collecting homewares could be streamlined if v-commerce became the norm.
41%
Pick up and pay
For home improvements, augmented reality (AR) offers exciting possibilities to enable shoppers to visualize items in their own homes. They can browse, see how a new sofa might look in situ and purchase it seamlessly with the risk of return reduced – they have effectively already tried and tested before making the purchase.
The virtual showroom
The future of pay later
Millennials were the generation most likely to use buy now, pay later (BNPL) options, especially at the US$250 (and higher) price point. BNPL is still growing in popularity, especially as younger generations gain purchasing power. In a market where individual purchases can be high-value, BNPL becomes an attractive option. However, some shoppers were worried about overspending and high fees, and one in four we surveyed said they found installments hard to track.
Be sure to be transparent in your BNPL offering and keep fees minimal to keep your customers coming back.
Could you enhance this experience by integrating payments into AR applications, allowing customers to purchase items seamlessly without leaving their virtual space?
Next sector: Electronics and apparel
Imagine being able to reserve a piece of furniture and simply drive to the store, have it loaded into your vehicle and then have the payment processed as soon as you close the trunk. No need to enter the store itself – the car’s integrated payments system registers the transaction and completes it automatically. Such a process could cut waiting times and improve the customer experience. No more wandering around warehouses or hauling heavy cartons to the parking lot. Just drive in and go.
of people in our study increased their spending on home improvements, with shoppers in the UK reporting the biggest increase
expected to spend more over the following year than in the previous 12 months, with 40% maintaining spend
Of those asked,
compared to an average of
Customers in Australia revealed they were more likely to purchase home improvements and homeware products and services via social media over the following 12 months.
People were shopping for home improvement products and services via social media across the five countries we surveyed. Leading the pack were:
of in-store shoppers said they would prefer to pay cash on delivery
22%
When shopping online,
and in-store
followed by debit/prepaid card, online at:
46%
From our study, credit card remained the preferred method of payment online:
Understanding how people pay for their renovations and furniture today may influence future trends in industry spending.
30%
across the five countries surveyed
of respondents said they prefer a direct debit/autopay method, while
US$250 and US$1,000
of those we asked more likely to use this option for purchases ranging between
Larger purchases in this sector may attract higher ‘Buy Now, Pay Later’ spend, with
Spend on electronics and apparel remained relatively steady, with many of those we asked expecting to spend the same over the 12 months following our research as they did in the previous year. Perhaps unsurprisingly, Millennials and Gen Z were spending the most in this sector. But how has the pandemic reshaped their habits?
Encouraging spend among younger electronics and apparel shoppers
Spending on electronics and apparel is dominated by Gen Z and Millennials. As retailers work to meet the demands of younger generations, the way we all shop and pay is evolving.
Previous sector: Home improvements
With around of consumers we asked saying they had bought a product online after seeing it in a physical store,⁸ the physical customer experience is clearly still important to the purchase journey.
Embrace the ‘experiential’
of consumers were interested in cryptocurrency. In an already digital market, giving consumers the ability to pay with digital currencies could open up new revenue streams.
Retail goes crypto
Consider that the fashion industry has embraced digital fashion, providing consumers with virtual clothing items to use in video games and social media photoshoots.⁹ Former ideas around tangibility and value are breaking down as the physical blends with the digital. As the concept of the ‘metaverse’ gains traction, we may see adoption of crypto payment increase. Purchases on the blockchain may become more commonplace, with consumers using secure virtual ledgers to buy everything from physical items (like smart-home appliances) to intangible digital items (like virtual fashion).
Next sector: Investing
Stores can be repositioned as experiential locations, with reduced emphasis on selling products and more on the experience of your brand. Apparel retailers, for example, could offer workshops, events and fashion shows to showcase their clothing. Electronics retailers could turn spaces into demo areas for users to try out new products before purchasing. You can ensure that each touchpoint is a consistent experience for customers with a well-considered omnichannel payment strategy.
of shoppers asked expected to spend as much in this sector over the following 12 months as they did in the previous year
expected to spend even more
21%
As people turn their attention to socializing in person,
compared to (on average)
66%
Brazilian consumers – seemingly always at the forefront of innovative payments – were more likely than others to purchase electronics and apparel directly via social media (66% compared to 45% on average)
Brazil
Do you know which of these countries’ consumers said they spent the most on electronics and apparel via social media? Click the arrow for the answer.
over the 12 months preceding our survey than dining out or traveling
electronics and apparel
Over half (53%)
Credit cards were still the preferred online
Understanding how people pay for electronics and apparel today may influence future trends in industry spending.
of surveyed shoppers said that loyalty programs in this category are important to them. Gen Z spent more on
payment method. This could be attributed to the larger item value when buying electronics, or the more regular, seasonal purchases made in apparel
Almost 1/3
8 Luxe. (2020) Why Digital-Native Luxury Brands Are Opening Physical Stores. [online] Available at: https://luxe.digital/business/digital-luxury-reports/digital-luxury-ecommerce-brands-open-physical-stores/ [Accessed 21 Jan 2022] 9 Howcroft, E. (2021) Crypto fashion: why people pay real money for virtual clothes. Reuters. [Online] https://www.reuters.com/business/finance/crypto-fashion-why-people-pay-real-money-virtual-clothes-2021-08-12/ [Accessed 26 Jan. 2022]
Spend in this area is growing rapidly. More cash went into investors’ stock-based funds between November 2020 and April 2021 than over the previous 12 years combined.¹⁰ But as new products and payment methods emerge, where and how will future investors spend?
A smart look at investment payments
Investors of the future are likely to make payments in quite different ways, especially as cryptocurrencies take hold in our everyday lives. Current changes in markets, like interest rate rises, could also affect investments in the short term.
Previous sector: Electronics and apparel
of consumers we surveyed were interested in cryptocurrency, citing benefits including decentralization and cross-border payments. Other digital currencies, such as Central Bank Digital Currencies (CBDC), have emerged alongside cryptocurrencies. Customers in Brazil and Singapore showed a preference for such ‘digital fiat’ currencies (20-25% of people in each country said they would prefer to use a CBDC).
Investing with crypto
The future of investments could be automated to a much higher degree, at least for retail investors. Platforms and apps that enable investors to make small payments or buy stocks automatically already exist. For example, one particular service allows investors to buy fractional stocks when they shop at a particular business – topping up their investment portfolio every time they buy a coffee.¹³ As investment apps become more commonplace, portions of the investment journey may become automated, with no requirement for investors to even “touch” their portfolios. Allowing machines and artificial intelligence (AI) to make investment decisions may be controversial, but with AI giving people access to the same market analysis and insights, it could democratize the world of investing.¹⁴
Hands-off decision making
When interest rates rise, investors want to be able to move their money at speed and with ease. As traditional payout methods can take days, forward-thinking providers are already implementing technologies that enable real-time transactions to push funds to cards instantly. To help capture the attention of forward-thinking investors, continue to include APMs and digital wallets in your payment method offerings. With hundreds of APMs across different regions, accepting payments, no matter which borders the payments need to cross, could be vital to your future trade.
Next sector: Online content and services
4x
of those who reported a preference for CBDCs told us they felt cryptocurrency wallets were more vulnerable, and 25% were concerned they could be used for illegal activities. Whether backed by a central government or not, digital currencies may become a prominent feature in the investments market in the near future. Your organization can prepare to facilitate these, whilst keeping regulatory requirements at front of mind.
This rise in interest was most notable across Europe. Stock purchases by retail investors in France alone, for example, increased fourfold in 2020.¹¹
27%
of consumers we surveyed were interested in paying with cryptocurrency, and 5% reported already using it. But how are these payments authorized?
What percentage of consumers asked were interested in cryptocurrency? Select an answer to find out.
of financial services payments are made with APMs¹²
Up to 41%
26%
This was followed closely by credit card payments at
For online investors, bank transfer was still the most preferred payment method of those we spoke to
Understanding how people purchase stocks and pay into investments today may influence future trends in industry spending.
Additional research carried out by Worldpay has shown that Alternative Payment Methods (APMs) – including digital wallets and more localized options – have gained a real foothold when it comes to paying for financial services.
10 Cox, J. (2021) Investors have put more money into stocks in the last 5 months than the previous 12 years combined. CNBC. [Online] https://www.cnbc.com/2021/04/09/investors-have-put-more-money-into-stocks-in-the-last-5-months-than-the-previous-12-years-combined.html [Accessed 26 Jan. 2022]
Over the course of the pandemic, consumers showed new interest in investments.
11 Maijoor, S. (2020) “Retail investors and asset management are the pillars of a successful Capital Markets Union” Irish Funds Annual Conference 2020. European Securities and Markets Authority. Available at: https://www.esma.europa.eu/sites/default/files/library/esma71-99-1421_steven_maijoor_speech_irish_fund_industry_association.pdf [Accessed 26 Jan. 2022]
13%
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What percentage of consumers in our study were interested in biometric technology to authorize payments? Select an answer to find out.
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of consumers we surveyed were interested in using biometric technologies for payments, but between 50% and 60% of consumers said they have reservations about security and privacy concerns
12 Worldpay from FIS. (2020) Power Your Payments: Financial Services. Available at: https://offers.worldpayglobal.com/payments-finance.html [Accessed 27 Jan. 2022]
More options of transacting
13 Grifin. (2022) Home page. Available at: https://www.grifin.com/ [Accessed 13 Feb. 2022] 14 Q.ai (2021) How AI-Powered Investing Is Changing Wall Street For Millennials. Forbes. Available at: https://www.forbes.com/sites/qai/2021/09/13/how-ai-powered-investing-is-changing-wall-street-for-millennials/ [Accessed 15 Feb. 2022]
Online content and service purchasing saw a surge in sales over the 12 months preceding our research, with many of us spending more time indoors, behind screens. Looking ahead, the level of spending in this sector is likely to stay consistent over the next year.
Tap into new online content and subscription opportunities
Previous sector: Investing
Next sector: Gaming
increase in spend seen in this sector over the 12 months preceding our research
at the time of the survey
38%
were most likely to use social media to sign up or subscribe to these products and services. In Brazil, consumers were more likely to sign up to digital content via social media.
Across all sectors,
Today, there is fierce competition between a number of popular online content/subscription services. Your business may benefit from embracing the payments future.
of users said they intended to spend the same amount over the following year
said they intended to spend even more in the following 12 months
16%
37%
of consumers surveyed made purchases directly via social media in the 12 months preceding our survey
signed up to a streaming service in the preceding 12 months, and 34% planned to the following year
Online content and subscriptions ranked as the second most popular sector in terms of social media spend in our study.
Some brands have begun to experiment with ‘metaverse’ shopping, in which users explore virtual aisles, selecting items much as they would in a physical store.⁶ Similarly, online content (including movies and video games) may transform the way we consume. Could the ‘metaverse’ eventually come to replace brick-and-mortar stores? Could ‘metaverse arcades’ become new meeting points for gamers? We should expect the digital to blend into the physical over the coming years. We may soon be browsing new movies to watch by ‘walking’ through a digital showcase, then enjoying that movie with friends from around the world. You can start to get ahead by considering the payment implications of this brave new world and beginning to implement the appropriate technologies.
The new meaning of "online content"
A number of video games centered around crypto assets and NFTs (Non-Fungible Tokens) already exist, allowing players to enjoy leisure time in the digital world while potentially boosting their crypto portfolio.¹⁵ Earning currency while playing video games may shift customer expectations. Why should your customer pay for a streaming subscription if another service essentially pays their players to engage? Your online content platform might consider how to implement crypto into your business model, as this could become a point of differentiation in an increasingly crowded market.
Crypto gaming
of consumers surveyed were interested in using biometric authentication to authorize payments. This may dramatically reduce the time it takes for customers to check out. For consumers, this also takes away a layer of complexity. Consumers could browse for a new movie, for example, hit the ‘Checkout’ button, and use their mobile phone’s facial or fingerprint recognition to immediately authorize payment and start downloading.
Paying with biometrics
However, approximately 60% of global consumers we asked had reservations about using biometrics, largely around how they are implemented. You can reassure your customers with clear and transparent information regarding data collection.
6 Thomas, L (2022) Walmart is quietly preparing to enter the metaverse. CNBC. [Online] https://www.cnbc.com/2022/01/16/walmart-is-quietly-preparing-to-enter-the-metaverse.html [Accessed 25 Jan. 2022] 15 Akamo, A (2022) How blockchain technology is changing the way we play games. Available at: https://nairametrics.com/2022/02/12/how-blockchain-technology-is-changing-the-way-we-play-games/ [Accessed 15 Feb. 2022]
Millennials
the following year
Spending on gaming is unlikely to change drastically over the 12 months following our research, but future technologies continue to offer opportunities.
A look at innovation in gaming payments
Previous sector: Online content and services
Read our three visions of payment futures
of respondents said they would likely keep their spend on gaming at the same level as the previous 12 months
of land-based players in the U.K. said they would be happy to pay for gaming through a cashless payment method, but
55%
Understanding how people pay in the gaming sector today may influence future trends in industry spending
of online players asked said they prefer to pay with debit or prepaid card
was the most common payment method for land-based gambling activities in the U.K., such as playing fruit or slots machines (77%)¹⁶
Cash
said they would not be happy for an operator to access their information¹⁶ (information that may be crucial for ‘know-your-customer’ checks)
16 Gambling Commission (United Kingdom). (2021) Consumer views on cashless payments in land-based gambling. Available at: https://www.gamblingcommission.gov.uk/statistics-and-research/publication/consumer-views-on-cashless-payments-in-land-based-gambling [Accessed 26 Jan. 2022]
You might consider the possibilities opened up by emerging virtual worlds and research the payment technology needed to facilitate this evolution. For example, how could you employ the blockchain to secure gamer data? Would crypto technology support or hinder regulatory reporting? How might your organization embrace APMs to facilitate easy payment from within virtual worlds?
of consumers were interested in the possibility of virtual and augmented reality (VR/AR) payments. With the emergence of ‘metaverses’ and immersive 3D social platforms, it is possible that gaming could soon take place entirely within a virtual world. However, operators will need to be mindful of regulatory requirements and restrictions that could limit such ventures.
Gaming in the virtual world
In the UK, Gen Z and Millennials were significantly more likely than other generations to have not been issued a contactless-enabled credit or debit card. Operators will need to ensure these consumers have a simple, frictionless way to pay and receive winnings. Biometrics may be the answer.
Gen Z and millenials
were more likely to use, and be interested in, innovative payment types and new technologies. Boomers were generally less likely to change their payment habits. Many consumers we spoke to (40%) were already interested in biometric technologies to help facilitate easy, more secure payments. However, approximately 60% of consumers said they have reservations about using biometrics, largely around how they are implemented. You can reassure your players with clear and transparent information regarding data collection.
Generational change
As the digital continues to blend with the physical, the ways in which people pay into gaming operators and receive winnings may evolve. However, it is important to note that online gaming is heavily regulated in most jurisdictions, which may curtail possibilities.
Start over
This is a lower figure than the previous 12 months, when of consumers spent more on gaming, compared to the year before.
Of those asked, only 7% expected to increase their gaming spend over the following year.
7%
What percentage of people expected to increase their spend on gaming in the 12 months following our survey? Select an answer to find out.
Across sectors and geographies, payment preferences and technologies are changing at pace.
©2022 FIS. Advancing the way the world pays, banks and invests™ FIS and the FIS logo are trademarks or registered trademarks of FIS or its subsidiaries in the U.S. and/or other countries. Other parties’ marks are the property of their respective owners. 1872992 This content is for information purposes only. We have taken care in the preparation of this information but will not be responsible for any loss or damage including loss of profits, indirect, special or consequential loss arising as a result of any information in this document or reliance on it. The content of this material may not be reproduced without prior consent of Worldpay. This material may include information on third parties and their services. The reference to these third parties is for information purposes only and does not constitute an endorsement or recommendation of the third party or their service.
What comes next?
Find out how the world pays today and how we may be paying tomorrow in our comprehensive report.
71%
The concept of the ‘metaverse’ – an immersive, 3D, online space for interaction, shopping, and collaboration – is gaining traction. We are already seeing consumers spending large sums on virtual items, everything from art to digital clothing – and businesses may need to be prepared to operate payments systems in digital worlds, to make the most of the new revenue opportunities on offer. However, there does seem to still be a limit in how far we allow the digital to blend with the physical. of consumers asked were not interested in the concept of payment with implanted microchips.
The next three to five years may see the ways in which we pay for and access goods and services transform, whether digital or not, for the future. It makes sense for businesses to be ready for change, even if we do not know exactly what that looks like.
Here are our three visions of potiential future payments:
6%
Soon, many of us may be driving around in payment instruments. With of consumers already using in-car payment integration (or v-commerce) at the time of our survey, and 41% interested in doing so, we may see our vehicles become easy-to-use payment methods. Businesses that stand to benefit the most from this innovation – for example, fast food chains, home improvement stores and any other business that requires consumers to visit in their car – might look to consider the implications of this trend sooner rather than later. of consumers were interested in the possibility of drone delivery. With ‘delivery by robot’ already trialed in key cities, we might soon be sharing the roads (and skies) with autonomous machines. The time to plan for integration is now.
18%
The very concept of money is being challenged due to the rapid popularization of digital currencies. Interest in paying with such technologies was particularly strong in Brazil and Singapore but also evident in all of the other countries in our study. However, across the U.S., the U.K. and Australia, consumers remained more likely to reject digital currencies as a form of payment. This could be a generational preference, as our data suggests Gen X and Boomers were significantly less likely to use digital currencies. In contrast, we found that Gen Z consumers in the US were more likely to prefer the use of Central Bank Digital Currencies (CBDCs). When it comes to authorizing payment, there was a preference for biometric technology, with already taking advantage of it at the time of our survey and 40% interested. It could be that the wallet of the future is not a physical item at all. Instead, we may authorize payments using our fingerprints or faces and have our funds drawn from a digital wallet containing a mix of digital and fiat currencies.
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Sources Unless otherwise noted, all statistics are drawn from research conducted by Savanta on behalf of Worldpay from FIS between July and August 2021.
1 Lunden, I (2022) Starship Technologies picks up €50M from the EU’s investment arm to expand its fleet of autonomous delivery robots. TechCrunch. [Online] Available at: https://techcrunch.com/2022/01/25/starship-technologies-picks-up-e50m-from-the-eus-investment-arm-to-expand-its-fleet-of-autonomous-delivery-robots/ [Accessed 25 Jan. 2022] 2 McKinsey. (2021) Next in loyalty: Eight levers to turn customers into fans. [online] Available at: https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/next-in-loyalty-eight-levers-to-turn-customers-into-fans [Accessed 20 Dec. 2021] 3 TUI. (2017) World’s leading travel company reveals the future of holiday shopping with cutting edge prototype that taps into the subconcious [sic]. Available at: https://www.tui.co.uk/press/destination-u/ [Accessed 14 Feb. 2022] 4 Tesla. (2022) Tesla Insurance Using Real-Time Driving Behavior. Available at: https://www.tesla.com/support/insurance/real-time-insurance [Accessed 14 Feb. 2022] 5 Awards Analyst (2021) Felix climate pop-up showed Swedish shoppers the true cost of their groceries. The Drum. Available at: https://www.thedrum.com/news/2021/12/07/felix-climate-pop-up-showed-swedish-shoppers-the-true-cost-their-groceries [Accessed 14 Feb. 2022] 6 Thomas, L (2022) Walmart is quietly preparing to enter the metaverse. CNBC. [Online] https://www.cnbc.com/2022/01/16/walmart-is-quietly-preparing-to-enter-the-metaverse.html [Accessed 25 Jan. 2022] 7 Callaghan, S, et al. (2021) Feeling good: The future of the $1.5 trillion wellness market. McKinsey & Company. [Online] https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/feeling-good-the-future-of-the-1-5-trillion-wellness-market [Accessed 26 Jan. 2022] 8 Luxe. (2020) Why Digital-Native Luxury Brands Are Opening Physical Stores. [online] Available at: https://luxe.digital/business/digital-luxury-reports/digital-luxury-ecommerce-brands-open-physical-stores/ [Accessed 21 Jan 2022]
9 Howcroft, E. (2021) Crypto fashion: why people pay real money for virtual clothes. Reuters. [Online] https://www.reuters.com/business/finance/crypto-fashion-why-people-pay-real-money-virtual-clothes-2021-08-12/ [Accessed 26 Jan. 2022] 10 Cox, J. (2021) Investors have put more money into stocks in the last 5 months than the previous 12 years combined. CNBC. [Online] https://www.cnbc.com/2021/04/09/investors-have-put-more-money-into-stocks-in-the-last-5-months-than-the-previous-12-years-combined.html [Accessed 26 Jan. 2022] 11 Maijoor, S. (2020) “Retail investors and asset management are the pillars of a successful Capital Markets Union” Irish Funds Annual Conference 2020. European Securities and Markets Authority. Available at: https://www.esma.europa.eu/sites/default/files/library/esma71-99-1421_steven_maijoor_speech_irish_fund_industry_association.pdf [Accessed 26 Jan. 2022] 12 Worldpay from FIS. (2020) Power Your Payments: Financial Services. Available at: https://offers.worldpayglobal.com/payments-finance.html [Accessed 27 Jan. 2022] 13 Grifin. (2022) Home page. Available at: https://www.grifin.com/ [Accessed 13 Feb. 2022] 14 Q.ai (2021) How AI-Powered Investing Is Changing Wall Street For Millennials. Forbes. Available at: https://www.forbes.com/sites/qai/2021/09/13/how-ai-powered-investing-is-changing-wall-street-for-millennials/ [Accessed 15 Feb. 2022] 15 Akamo, A (2022) How blockchain technology is changing the way we play games. Available at: https://nairametrics.com/2022/02/12/how-blockchain-technology-is-changing-the-way-we-play-games/ [Accessed 15 Feb. 2022] 16 Gambling Commission (United Kingdom). (2021) Consumer views on cashless payments in land-based gambling. Available at: https://www.gamblingcommission.gov.uk/statistics-and-research/publication/consumer-views-on-cashless-payments-in-land-based-gambling [Accessed 26 Jan. 2022]
