What to expect from payments in 2023 and how to prepare

Blogs 19 Dec 2022

With consumer behaviour changing and inflation rising, MultiPay look at four payment trends for 2023 and how your small business can prepare for the year ahead.

Customer paying with mobile phone on terminal

Retail payments have had a revolution over the past few years. The arrival of buy now, pay later (BNPL), mobile, and recently crypto payments have dramatically changed how consumers buy and pay for products and services. As we head into 2023, this rate of change is set to increase as the economic climate and changing consumer behaviours take hold.

Keeping pace with this rate of change can feel like running a marathon, where each mile conquered is followed by another one ready to be tackled. However, just with a marathon, those who persevere are greeted with rewards. In the payment space, these rewards include an improved customer experience (CX), increased customer loyalty and enhanced cash flow. To reach these rewards though it always helps to know what is ahead and how to prepare for it, with that in mind here are four payment trends to watch out for in 2023.

1. Research more, spend less

Macroeconomic factors including inflation and the cost-of-living crisis are already impacting consumer behaviours, however, these challenges will continue into 2023 and likely beyond. In the year ahead, consumers will be taking extra steps with how they spend, investing in thinking time and research before they commit.

As a result, CX, price and ease of finding product information will be vital areas to prioritise in 2023. Brands that make it easy to find information and complete purchases, will be best placed to deliver the experience consumers expect.

Takeaway: Help customers by aiding their research and doubling down on CX. Make key information like price, availability, returns policies and reviews easier to find. Create improvements in payment processes by focusing on simplicity, reliability, and speed.

2. BNPL is here to stay

After a meteoric rise in popularity, BNPL has endured several testing years with concerns around transparency and trust. Now emerging on the other side, BNPL is looking strong and more resilient as a payment method than ever before. In 2023, BNPL will continue maturing with tighter regulations and increased consumer credit checks in place. By increasing transparency, trust, and consumer protection, BNPL will cement itself as an alternative to credit cards. Expect to see this continue past 2023 as well, with Juniper Research predicting BNPL to account for around a quarter of e-commerce payments by 2026.

Takeaway: Don’t neglect BNPL. If you haven’t got BNPL in place as a payment option yet, then don’t delay. Speak to payment suppliers to find out how it can be integrated into your payment system. 

3. New ways to pay

Following in BNPL’s footsteps, newer ways to pay will emerge in 2023. Leading the charge will be payment super apps and alternative payment methods. Payment super apps will arrive combining multiple ways to pay into one single app. Card, mobile, crypto, BNPL and even newer payment methods will be available to customers through a single app. Making it easier to provide multiple ways for consumers to pay whether in-store or online, payment super apps will become a key touchpoint in CX programmes. With retailers able to white label solutions and launch their own super apps, they will provide invaluable data into customer behaviours and preferences that can be used to further enhance CX.

Joining payment super apps in making a breakthrough in 2023 will be alternative payment methods. Able to be built into payment apps, alternative payment methods will not require a credit or debit card, and instead, enable bank-to-bank transfers between consumers and retailers. By reducing the number of parties involved in processing a payment, businesses will benefit from instant reconciliation of transactions and reduced costs that can be passed on to consumers via price reductions or increased loyalty points.

Takeaway: Innovation within the payment industry is at an all-time high. New systems are being launched each week that offer new features and services. Speak to suppliers about how to launch a payment super app and alternative payment methods and how they can help improve cash flow and CX.

4. Wallet RIP

Cash has died and payment cards and IDs will follow. As smartphones become the home for all cards, 2023 will be the start of wallets becoming a novelty. With more of our lives becoming digital, the need to carry a wallet or purse will diminish, freeing consumers to carry fewer items. Expect keys to be next as smart locks rise in usage.

Takeaway: Consumers are no longer mobile first; they are becoming mobile only. Take time to review your mobile offering, and ensure you deliver a first-class mobile experience both online and in-store.

Multipay Group logo in black


This content was written by MultiPay

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