The global landscape of consumer behavior has undergone a significant transformation, with online transactions increasingly preferred by consumers since 2022.

This trend has accelerated the decline of cash payments, resulting in a significant increase in the global transaction volume of digital payments and a growing preference for e-wallets, Apple Pay, Google Pay, gift cards, and other digital payment options.

According to S&P Global’s “Global Online Payments and FinTech Ecosystem Report 2021,” a significant shift toward digital payments began in 2020, with one-third of users worldwide embracing digital payment methods. Over half (52%) of consumers have moved most or all of their in-store purchases to online platforms, while 59% have used at least one digital payment service.

A diverse range of online payment methods has emerged, including Buy Now Pay Later and Buy Online Pickup in Store, which have garnered considerable attention. Among these, Buy Now Pay Later has become the preferred payment method for Generation Z, signaling a notable change in payment preferences.

Recent data shows that nearly 40% of U.S. consumers used Buy Now Pay Later (BNPL) services for their holiday purchases during the 2021 shopping season. To meet the growing demands of younger consumers, an increasing number of platforms and e-payment companies are adopting this new payment model.

Globally, two-thirds of adults now engage in digital payments, reflecting a significant rise from 35% in 2014 to 57% in 2021 in developing economies.

The rise of mobile money accounts has played a crucial role in advancing financial inclusion, particularly in sub-Saharan Africa. Currently, 71% of individuals in this region hold accounts with banks, financial institutions, or mobile money service providers, marking a significant increase from 42% in 2011 and 63% in 2017.

David Malpass, President of the World Bank, underscores the transformative impact of the digital revolution on financial services, emphasizing the importance of creating a supportive policy environment to further increase access to formal accounts and financial services, especially for women and marginalized groups.

Notably, the Global Financial Inclusion Index database shows a narrowing of the gender gap in account ownership for the first time since its launch in 2011. This change suggests that women are gaining greater control over their finances, leading to improved privacy and security.

Globally, the gender gap in account ownership has decreased from a 7 percentage point difference in 2017 to just 4 percentage points, with similar progress observed in low- and middle-income countries. This narrowing gap highlights the increasing financial inclusion of women across the globe.

In developing economies, approximately 36% of adults now use accounts to receive paychecks, government payments, agricultural sales, or domestic remittances. Encouragingly, data shows that transitioning to digital payments significantly boosts engagement with formal financial systems. When individuals begin receiving payments digitally, 83% also use their accounts for digital payments, while nearly two-thirds use them for cash management and 40% for savings. These behaviors contribute to the continued growth of the global financial ecosystem.

However, despite these advancements, many individuals still lack reliable access to emergency funds. In low- and middle-income economies, only about half of adults report having relatively easy access to additional funds during emergencies, often relying on informal sources such as family and friends.

The global shift to digital payments is reshaping the future of transactions, driving financial inclusion, innovation, and empowerment. However, efforts must continue to ensure equitable access to financial services, particularly among underserved populations, to foster sustainable economic growth and development worldwide.