For Visa, 2022 was, in many ways, a year of transition. Much of the world has passed, slowly but surely, from months of restrictions to a new normal. During this time, the global transition from cash to electronic payments continued. As the year 2023 begins, global digital payments company spots some unmissable trends.
Travel is making a comeback
A clear rebound in travel could be recorded in 2022, France remains one of the most popular destinations around the world, while eight out of ten tourists have already visited the country. Paris in particular remains an “unmissable destination” : 73% of tourists want to visit the French capital. A recent GfK study for Visa* also revealed that 95% of tourists expect to be able to pay by card. (and 60% to do it with their smartphone) when they visit France, which highlights the need to accept electronic payments in stores. Indeed, 72% of foreign tourists intend to go shopping in France : if department stores come out on top (65 %), small boutiques and local craft businesses come just after in purchasing intentions (62 % et 56 %).
More determined and conscious consumers
Consumers are focusing on sustainability and climate change in their behaviors and consumption habits. So the majority of travelers are concerned about the environment. However, this is less true when traveling than at home, according to the GfK study for Visa. The Germans are the best performers in this regard, with 67% of people “very interested in the environment”, to the point of changing their habits. If 76% of tourists say they “recycle at home”, only 61% do so while traveling. In 2023, we expect more consumers to walk the talk as more options become available. Convenience will play a key role in helping consumers choose a sustainable lifestyle. for example, the possibility of paying for public transport using a credit card, debit or contactless prepaid, means people no longer need to tie up funds on a specific travel card, a paper ticket, or looking for cash, when they choose not to take their car. Visa's second survey on the future of urban mobility found that 86% of respondents in France say sustainability plays a role in their decision to use public transport — less than 14% said it did not influence their decision at all.
More determined and conscious consumers
In 2023 and beyond, we will observe a version 3.0 payments between businesses, where the new frontier of global business-to-business commerce will be entirely digital, secure, fast, flexible and transparent. The digitalization of business processes will continue to accelerate business-to-business transactions and integrated payment offerings beyond paper checks and invoices. Accounts Receivable teams are already seeing the benefits of sending electronic invoices and receiving electronic payments. More and more administrations are making progress in the digitalization of payments, whether payments to citizens or payments to agencies as clients. Banks, CPUs and networks continue to advance potential use cases for virtual cards. This innovation momentum will continue as the ecosystem provides more features and functionality to streamline payments and business operations.
Cryptocurrency winter does not stop innovation
Crypto markets have seen their fair share of volatility over the past year. Although the future remains uncertain, we expect a number of unsustainable solutions to be abandoned, while others who focus on a measured approach and in line with recent technological developments will continue to build meaningful Web3 solutions for businesses and consumers. In the wake of recent liquidity failures, we hope that cryptocurrency platforms around the world will strive to put in place effective protections and provide good information for customers. In the immediate future, we envisage a continued effort on the part of governments, central banks, traditional financial institutions and FinTechs regarding electronic money and payments – whether CBDC (Central Bank Digital Currency), stablecoins or other forms of tokenized fiat money. Significant Web3 payments use cases on the horizon include streaming payments and micropayments and cross-border disbursements.
Fraud adapts to a “hybrid” world
As more and more people around the world adopt a “hybrid” lifestyle, fraudsters keep up, adapting their tactics to where we are and finding new ways to scam consumers. This means that security and trust remain essential. New breakthroughs in authentication for user protection, like EMV 3 D Secure (EMV 3DS), help secure online commerce in real time around the world. Electronic payment methods and solutions such as virtual cards will continue to make all transactions easier and more secure, from buying a plane ticket to splitting the bill at dinner. Businesses will also be more aware of the importance of investing in security tools to prevent fraud and in insurance policies that could help mitigate the impact of a breach..
*Online interviews conducted in May 2022 with travelers planning to visit France in 2022, from the United States, from the United Kingdom, from Germany and Belgium (3,238 in total) based on a 35-question questionnaire.
