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Follow Laura on Twitter @lauraliuhe." data-title="Laura He" data-html="true" data-template=" Online, mobile and digital currency payment systems are set to overtake credit and debit cards as the most popular ways to pay in e-commerce worldwide by 2019, a report by a United Nations body on international trade and development said on Tuesday.
The share of credit and debit cards in global payments is expected to drop to 46 per cent by 2019 from 51 per cent three years ago, the United Nations Conference on Trade and Development (UNCTAD) said in its “Information Economy Report 2017: Digitalisation, Trade and Development”, citing figures from payment processing company Worldpay.
“This technology can make online payments safe, and being peer-to-peer, it is less expensive than intermediated payment platforms,” the report said.
“While few internet users currently prefer this method of payment, it is gradually being adopted as it improves security, accelerates settlement, reduces the size of the minimum viable transaction and executes digitised versions of traditional contracts (so-called smart contracts).” The properties of blockchain technology enable smaller cross-border transactions, including remittances, which would otherwise not be made due to high fixed costs or a lack of trust among parties, the report added.
Alipay recently signed up coffee chain Starbucks to allow e-payment at all 2,800 Starbucks locations in China, while at a KFC fast food restaurant in China, diners can pay via Alipay using facial recognition technology.
Alipay rolls out world’s first ‘Smile to Pay’ facial recognition system at KFC outlet in Hangzhou The UNCTAD report said that in developed regions, digital payments are dominated by credit and debit cards, followed by e-wallets.
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