Top POS Payment Methods (2023–2027)
Recent data reveals that, as of 2023, digital wallets and credit cards have emerged as the most popular online payment methods globally. However, when it comes to point-of-sale (POS) transactions, what payment methods do consumers prefer? In this article, we explore essential data and statistics on this subject.
What is pos payment?
POS, or point of sale, transactions refer to the moment a customer makes a purchase and completes the payment at a physical location. Examples of POS payments include buying groceries at a supermarket, dining at a restaurant, or purchasing items at a brick-and-mortar retail store.
This means that unlike ecommerce transactions, POS payments are conducted in-person and occur in physical retail environments.
Most popular point-of-sale payment methods worldwide (2023)
|
Point-of-sale payment methods |
2023 |
2027 |
|---|---|---|
|
Digital wallets |
30% |
46% |
|
Credit cards |
27% |
22% |
|
Debit cards |
23% |
18% |
|
Cash |
16% |
11% |
|
Prepaid cards |
2% |
2% |
|
POS financing |
1% |
1% |
According to a recent survey, as of 2023, digital wallets rank as the leading POS payment method, commanding a 30% share. This translates to $3 out of every $10 spent in physical stores being transacted through a digital wallet. Projections indicate that the share of digital wallets in POS payments will surge to 46% by 2027, underscoring global consumers’ growing preference for this payment method. It is also the fastest-growing POS payment method, with an anticipated 16% compound annual growth rate (CAGR) through 2027.
Credit cards and debit cards are the second- and third-most-popular POS payment methods, boasting shares of 27% and 23%, respectively. Unlike digital wallets, their shares are forecast to fall by five percentage points by 2027, dipping to 22% and 18%, respectively.
Together, payments done via digital wallets, credit cards, and debit cards comprise 80% of POS transactions, which means that $4 out of every $5 spent in physical stores involve these payment methods.
Despite advances in payment technologies, cash remains one of the most popular point-of-sale payment methods, accounting for 16% of the total transaction value. But its usage is projected to decline to 11% by 2027, marking a CAGR of -6%.
Prepaid cards and POS financing round out the list of the top POS payment methods worldwide, with shares of 2% and 1%, respectively.