2022: What to expect in Payments

Once again, we find ourselves at the start of a new year. Around this time, our partners and clients often ask us about the upcoming trends they should expect. While we don’t have a crystal ball we do have some projections for the upcoming trends. 

Here are 5 trends we expect will gain attention or continue growing in 2022.

Cashless Payments

If you read last year’s predictions, you would have seen that cashless society was on the ISVPay report of 5 Drivers of Payments in 2021. As a whole, we have seen an unprecedented acceleration of digital payment adoption within the integrated payment space. As we move into 2022, ISVs will continue to leverage technology over cash and further reduce the usage of cash in everyday purchases. 

Key findings in 2021 showed that 41% of consumers started using cashless payments because of the pandemic. Feedzai reported there was a 44% decrease in cash transactions, and a 109% increase in online transactions, to nearly double the number of card-present or in-person transactions. The growth will stabilize in 2022 and continue to be the preferred method of payment for many consumers.

Digitalization of Payments Technology

Businesses will continue to invest in new technology to meet the demand of consumers. As a result of the pandemic, many consumers have been willing to adapt and embrace new technologies. As consumers continue making purchases with their cards, mobile wallets, or applications, the ease of convenience becomes the preferred way to pay. Businesses and ISVs will move into a mobile-first consumer experience and continue to build on the success they’ve already achieved with digital payments using platforms like ISVPay. 

According to a recent PYMTS report done in collaboration with American Express, an estimated 57% of consumers prefer retailers that provide digital, contactless payment options. Six out of 10 merchants reported an increase in the number of consumers requesting contactless payments at checkout. Juniper Research reported that QR payments are estimated to account for 27% of all digital commerce transaction by 2024, making it the most used digital commerce method in terms of volume.

Ecommerce Growth

Surging ecommerce will continue to eat away at in-store payments’ share of overall retail. Online retail sales surged to $794.50 billion, a record-breaking 14.4% of total US retail in 2020, thanks to increased spending on smartphones in particular. M-commerce is predicted to become mainstream thanks to a host of technological advances that are making it easier for users to shop on their phones, especially with Millennials and Gen Zers holding massive spending power. This year, ecommerce is expected to rise, accounting for 21.0% of all retail sales.

Buy now, pay later (BNPL)

The BNPL industry has modernized layaway and installment payments to offer consumers a flexible payment option for their purchases. Compared to credit cards, intended to be used repeatedly, BNPL solutions are applied to individual transactions – appealing to consumers who want to make less of a financial commitment, even on lower ticket items.  BNPL’s convenience speaks for itself with its service growing at a rate of 39% a year. There are many benefits to merchants for offering additional services like BNPL. It’s not just for big ticket items anymore.


Major card brands like Visa and Mastercard are now extending simplified spending with use of their payment rails to send money and conduct crypto transfers. With new crypto-friendly payment innovations entering the market, it will accelerate growth and adoption worldwideThe platform enablement and issuance of crypto cards will enable a lot more possibilities for shoppers and merchants.

We will be sharing more thoughts on Crypto in an upcoming thought leadership article. Follow us so that you don’t miss this or any other future content from us.

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