Merchants Accept Digital Wallets but Will Not Invest in Innovation
BY PYMNTS | AUGUST 3, 2023
|
Merchants Accept Digital Wallets, Will Not Invest in Innovation
Around the world, merchants large and small have adopted digital wallet payments, but many are now happy with the status quo and not particularly interested in stepping up their tech efforts with this payment method.
For PYMNTS’ study “2023 Global Digital Shopping Index – The SMB Edition: How Digital Can Help SMBs Punch Above Their Weight,” we surveyed more than 13,000 consumers and 3,000 merchants across six countries to understand the digital tools that drive merchant preference and sales. The study found that across all geographies surveyed, the majority of merchants offer the ability to pay with digital wallets but have no intentions of innovating on the technology.
Digital wallet innovation
The study found that among all merchants surveyed, 54% of small- to medium-sized businesses (SMBs) accept digital wallets but are not focused on innovating, while a slightly greater 62% of large merchants said the same. Meanwhile, only 27% of SMBs and 33% of large businesses offer the payment capability and do have plans to innovate going forward.
Even merchants that do not currently accept digital wallets are more likely to be satisfied with their current options than to be investing in adding the capability.
The study found that 15% of SMBs do not accept digital wallets and will not innovate, while only 5% of these businesses do not accept but have plans to innovate. Similarly, 4% of large businesses do not accept this payment method and will not innovate, while less than half that share does not accept digital wallets but plan to innovate.
Some countries are keener on digital wallet innovation than others. Merchants in India — both in terms of SMBs and large businesses — are the most likely of all markets surveyed to offer digital wallets and have plans to innovate, with 38% and 35%, respectively, falling into this category.
Conversely, merchants of all sizes in the United Kingdom are the most likely of all markets surveyed to be completely disinterested in digital wallets, with 25% and 7% of SMBs and large businesses, respectively, reporting that they do not accept this payment method and will not innovate.
