Welcome to Today in Payments. I’m your host, Patti Murphy, bringing you your daily dose of payments insights.
Spending through digital payment methods increased nearly 11-fold between 2014 and 2024, according to the 10th Annual Worldpay Global Payments Report.
In 2014, spending via account-to-account payments, buy now, pay later (BNPL), cryptocurrencies, and digital wallets totaled $1.7 trillion. By 2024, that number had surged to $18.7 trillion. Meanwhile, cash usage declined sharply, with in-store cash transactions dropping from 44% to 15% of purchases over the same period. The report attributes much of this shift to the rise of contactless payments, accelerated by the COVID-19 pandemic. Looking ahead, cash usage is projected to decline at a compounded annual rate of 2% through 2030.
The Worldpay Global Payments Report, typically a year-over-year analysis, takes a broader view this time, examining trends over the past decade. Key findings include:
In other payments news, Senator Richard Blumenthal has raised concerns about Visa’s partnership with X Money. Blumenthal, who represents Connecticut, serves as the Ranking Democrat on the Senate Permanent Subcommittee on Investigations, which investigates major national issues such as financial crimes and security threats.
X Money is a peer-to-peer (P2P) payment platform under development by X, the social media company owned by Elon Musk. Last month, X announced a partnership with Visa to integrate Visa Direct, Visa’s real-time payments platform, into X Money accounts.
In a letter to Visa CEO Ryan McInerney, Blumenthal questioned whether X could effectively prevent fraud, scams, and bot activity within its financial services. He emphasized Visa’s legal responsibility to maintain a secure network, stating, “As the largest payment processor in the world, Visa has a legal responsibility to ensure its network is free of financial crime such as scams and fraud, money laundering, terrorist financing, and more.”
The UK’s Payment Systems Regulator (PSR) has been abolished, with its responsibilities set to be absorbed by the Financial Conduct Authority (FCA), according to an announcement from the UK government. The move aims to "simplify and clarify" payments regulation, though it still requires formal approval by Parliament.
Despite the pending approval, the PSR and FCA have already begun merging their operations. The PSR has played a key role in modernizing the UK’s financial system and overseeing competition among payments industry players. Just last week, the regulator criticized Visa and Mastercard for a “lack of competition” and increasing interchange fees, stating that it was exploring potential remedies to address these concerns.
That’s it for Today in Payments. Be sure to tune in again tomorrow and every weekday for your daily dose of payments insights.