Payment Processing Software Statistics 2024

In an increasingly digital world, the role of payment processing software has become a linchpin in the seamless execution of financial transactions. As 2024 approaches, understanding the latest statistics in this domain is crucial for grasping the shifts and trends shaping the business landscape. These figures not only shed light on the accelerating adoption rates of various payment technologies but also underscore the importance of security, efficiency, and customer experience in financial operations. In a market driven by rapid technological advancements and changing consumer behaviors, staying informed with up-to-date data ensures businesses can adapt and thrive.

Key stakeholders, including business owners, financial analysts, technology developers, and policymakers, will find this data invaluable. For business owners and financial services providers, these statistics highlight emerging opportunities and risks, offering insights into strategies for competitive advantage. Technology developers can use this information to innovate and refine solutions that meet market demands, while policymakers can harness these insights to craft regulations that protect consumers and foster innovation. The ripple effects of payment processing trends are profound and pervasive, impacting everything from consumer trust to the bottom line.

Ultimately, mastering the intricacies of payment processing software through these statistics equips stakeholders to make informed decisions in a dynamic industry. Whether it’s optimizing transaction speeds, enhancing security protocols, or exploring new payment options, this data-driven approach is key to navigating the future of payments. This article will explore these critical statistics, providing a foundation for strategic planning and innovation in an era defined by digital transformation.

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Top Payment Processing Software Statistics 2024

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General Statistics On Payment Processing

• The 2022 Federal Reserve Payments Study (FRPS) collected data for the 2021 calendar year. ^[22]
• The value of core noncash payments in the United States grew faster from 2018 to 2021 than in any previous FRPS measurement period since 2000. ^[1]
• Noncash payments value increased at a rate of 9.5 percent per year since 2018, reaching $128.51 trillion in 2021. ^[1]
• The increase in the value of ACH transfers accounted for more than 90 percent of the rise in noncash payments value from 2018 to 2021. ^[1]
• ACH transfers have grown to $91.85 trillion, 72 percent of core noncash payments value in 2021. ^[1]
• In 2021, the value of check payments stood at $27.23 trillion, which was approximately 21 percent of noncash payments value. ^[1]
• Card payments value reached $9.43 trillion in 2021, accounting for approximately 7 percent of noncash payments value in that year. ^[1]
• The number of noncash payments grew by 30.7 billion, increasing to 204.5 billion in 2021. ^[1]
• With 157.0 billion payments in 2021, card payments accounted for approximately 77 percent of noncash payments by number. ^[1]
• ACH Network Moves 30 Billion Payments, $77 Trillion in 2022, led by growth in Same Day ACH and B2B. ^[11]

Trends In Payment Methods

• The number of ATM cash withdrawals dropped substantially from 2018 to 2021. ^[1]
• ATM cash withdrawals declined at a rate of 10.1 percent per year, falling to 3.7 billion in 2021. ^[1]
• By value, ATM cash withdrawals also declined, but at a slower rate, reflecting an increase in the average value of an ATM cash withdrawal from $156 in 2018 to $198 in 2021. ^[1]
• 64% of all companies in 2022 made more than half of their business-to-business (B2B) payments electronically, while only 28% still processed transactions manually. ^[3]
• Paper checks for B2B payments have dropped steadily since 2004, however global companies still pay 31% of invoices with checks. ^[3]
• 83% of adults in the U.S. have at least one credit card. ^[7]
• Debit cards narrowly edged out credit cards as the most popular method of payment in 2021, with 29 percent of consumers using them to make purchases, compared to 28 percent using credit cards. ^[7]

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Digital And Mobile Payments

• The rise of digital wallets has been rapid, with the global market size estimated to reach four billion by 2024. ^[7]
• The U.S. mobile payment market was valued at $53.5 billion in 2022 and will grow to over $607.9 billion by 2030. ^[9]
• Mobile payments will comprise more than half (51.7%) of global e-commerce payment preferences by 2024. ^[9]
• Digital payments market’s total transaction value is projected to reach US$10.64 trillion in 2024. ^[9]
• 60% of consumers have used a buy, pay later service, as of 2021. ^[7]

B2b Payments Market

• The global B2B payments market reached a value of US$732.4 billion in 2019. ^[3]
• The worldwide pandemic caused a temporary but significant drop in B2B payments across the globe, ending with a US$868-million market size in 2020. ^[3]
• Juniper Research says the global B2B payments market will pass $111 trillion in 2027, increasing significantly from its current size of over $88 trillion in 2022. ^[3]
• The market size is expected to more than double to $3.13 trillion by 2031 with a compound annual growth rate (CAGR) of 9.9%. ^[3]

Payment Processing Software For Nonprofits

• iATS Payments has over 20 years in business and maintains the highest security standards (level 1 PCI compliance). ^[4]
• Rates for credit card processing range from 2.49% (for Visa, MasterCard, and Discover) to 3.2% (for American Express) per transaction. ^[4]
• ACH processing is offered at a flat $0.26 per transaction no matter the amount. ^[4]
• Stripe’s regular payment processing fee is 2.9% + $.30 per transaction. ^[4]
• Braintree Payments charges 2.9% + $0.30 per transaction, with an additional 1% fee for transactions processed outside of your home currency. ^[4]

Fraud And Security

• In 2020 and 2021, companies reported that scammers predominantly used these three payment types for fraud: checks, ACH debits, and wire transfers. ^[3]
• The number of wire transfer payment fraud attempts dropped from 39% in 2020 to 32% in 2021. ^[3]
• According to the Payments Association, only 2% of transactions are made using virtual cards. ^[9]
• According to Kroll, 56% of business leaders are incorporating AI in their latest cybersecurity efforts. ^[9]
• AI in businesses is expected to generate profits of more than $14 trillion in the year 2035. ^[9]

International And Cross-border Payments

• Cross-border payments take 55% longer than domestic payments for US & UK businesses. ^[3]
• Of the $120+ trillion in global B2B payments in 2021, at least $10 trillion was for cross-border transactions. ^[3]
• By 2025, the number of B2B cross-border transactions on blockchain will reach 745 million. ^[9]
• B2B cross-border payments on blockchains will account for 11% of the total B2B international payments by 2024. ^[9]
• International companies believe that faster payments have positively impacted their organization. ^[3]

Payment Processing Companies

• PayPal reported its strongest revenue growth in 2020 and 2021, increasing by over 20 percent year-on-year, largely due to the COVID-19 pandemic. ^[21]
• Stripe supports more than 135 currencies, allowing businesses to do business globally and receive payouts in local currencies. ^[13]
• GoCardless integrates easily with over 350 software packages, including accounting partners such as Sage and Xero. ^[5]
• Worldpay is one of the world’s largest companies in terms of digital payment processing technology and cloud-based payment systems, performing more than 31 million activities every day. ^[16]

Payment Processing Fees

• Square delivers funds to your account in one to two business days with fees ranging from 2.6% to 3.5%. ^[12]
• The median external cost to receive credit card payments for all businesses surveyed was 2% to 2.49%. ^[3]
• Braintree, acquired by PayPal in 2013, charges 2.9% + $0.30 per transaction. ^[19]
• PayPal charges 2.9% plus 49 per transaction in the US for standard credit and debit card payments, 2.29% plus 9 per transaction in the US for QR code transactions, and 3.49% plus 49 per transaction in the US for all other commercial transactions, including Paypal Checkout. ^[15]

Future Trends And Predictions

• The value of real-time payment transactions will grow by 289% between 2023 and 2030. ^[9]
• By 2027, real-time payments are expected to account for 27.8% of all electronic payments globally, up from 18% in 2022. ^[9]
• The global value of virtual card transactions is expected to rise to $6.8 trillion in 2026. ^[9]
• Gartner predicts that worldwide spending on security and risk management will reach $215 billion in 2024, an increase of 14.3 percent in 2023. ^[10]

Adoption And Usage

• 41% of Americans say that none of their purchases in a regular week are paid for using cash. ^[7]
• Nearly 80% of business leaders reported in a survey that they had a payment authorization rate of less than 90% or didn’t know their authorization rate. ^[17]
• 47% of top-performing subscription businesses recognize that most failed payments are attributed to problems with payment processing software. ^[22]

Regulatory And Compliance

• Regulation (EU) No 1409/2013 of the European Central Bank of 28 November 2013 on payments statistics (ECB/2013/43). ^[2]
• The NYDFS recently updated their Part 500 cybersecurity requirements. ^[14]

Market Insights

• The global B2B Payments market size was valued at USD 889436.03 million in 2022 and is expected to expand at a CAGR of 13.26% during the forecast period, reaching USD 1877171.0 million by 2028. ^[9]
• The global e-invoicing market is expected to exhibit a CAGR of 20.26% during 2023-2028. ^[9]
• The accounts receivable automation market will be worth $6.5 billion by 2027 and grow at a CAGR of 14.2%. ^[9]

Customer Preferences

• 73% of consumers prefer to shop and pay with digital methods. ^[9]
• 64% of consumers prefer to use credit cards for online purchases, while 15% prefer debit cards. ^[22]
• In January 2022, Visa reported that nearly 1 in 5 transactions were contactless. ^[17]

Organizational Insights

• Digital transformation is reshaping the business world, with a staggering 91% of businesses embarking on digital initiatives. ^[6]
• Only 16% of organizations report success in their digital transformation efforts, often hindered by poor digital adoption rates. ^[6]
• Cloud-based payroll systems are expected to be the dominant payroll delivery platform, with 61% of businesses planning to use cloud-based payroll solutions, compared to 39% using on-premises solutions. ^[8]

Technological Advancements

• Generative AI is expected to be the most influential trend permeating the entire financial services sector of 2024. ^[20]
• AI in businesses is expected to generate profits of more than $14 trillion in the year 2035. ^[9]
• AI tools in finance can automate and streamline processes, from financial analysis and reporting to procurement, and accounts payable. ^[20]

Miscellaneous

• By the end of 2023, the average credit card debt per borrower was $6,360, or about 10% higher than the year before. ^[18]
• Credit card charge-offs have risen gradually throughout 2022 and 2023, recently hitting a 12-year high at 4.24%. ^[18]
• In 2020, the number of non-cash transactions surpassed cash transactions for the first time in the European Union. ^[22]

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