While cards continue to dominate in North America and parts of Europe, alternative payment methods now account for more than 60% of global e-commerce transactions. The shift is structural, not cyclical, and it is reshaping how the entire industry thinks about payment infrastructure.
Digital Wallets: The New Default
Digital wallets are projected to reach 5.2 billion users globally by 2026, capturing approximately 53% of all online purchase transactions worldwide. In the United States, Apple Pay commands roughly 49% of the digital wallet market, followed by PayPal at 28% and Google Pay at 15%. In China, Alipay and WeChat Pay control more than 90% of mobile payments between them. Digital wallets store card credentials or bank account links in a secure hardware enclave on the consumer's device, using tokenisation and biometric authentication to initiate payments.
A newer category sits between classic card-credential wallets and pure A2A rails. Revolut Pay, built into Revolut Business, routes Revolut's 70 million-plus customers through an account-to-account flow that bypasses the card networks entirely, while non-Revolut customers fall back to a saved-card checkout. Revolut reports a 98.5% first-attempt authorisation rate on the A2A leg, which is materially above the 92 to 96 percent range typical of card-not-present checkout. The product carries published pricing from 1% + £0.20 online, undercutting standard flat-rate card processing in supported markets. The independent Revolut Pay review covers fees, eligibility, and the head-to-head against Stripe and PayPal in detail.
Account to Account Payments and Real Time Rails
Account to account (A2A) payments transfer funds directly between bank accounts, bypassing card networks and their associated fees entirely. The growth of real time payment infrastructure has been extraordinary. India's UPI processed over 18.6 billion transactions in May 2025 alone, with more than 500 million active users. Brazil's PIX handled 41 billion transactions in 2023 and has been adopted by over 70% of the adult population. The U.S. FedNow service, the UK's Faster Payments, SEPA Instant in Europe, and Singapore's PayNow all contribute to a global network of instant payment rails. Transaction volume across instant payment systems reached 195 billion in 2022 and is forecast to surpass 500 billion by 2027.
Buy Now, Pay Later
BNPL services allow consumers to split purchases into smaller, often interest free instalments. The global BNPL market is projected to grow from USD 179 billion in transaction volume in 2022 to between USD 450 billion and USD 509 billion by 2026. In the United States, an estimated 91.5 million consumers will use BNPL services in 2025, with Gen Z and Millennial shoppers driving adoption. Klarna, Affirm, Afterpay (owned by Block), and PayPal Pay Later are the leading providers. Merchants generally pay higher fees for BNPL acceptance but report increased conversion rates and higher average order values. Regulatory scrutiny is intensifying worldwide.
Cryptocurrency, Stablecoins, and Open Banking
Approximately 39% of U.S. merchants accepted cryptocurrency at checkout as of early 2026. Bitcoin's Lightning Network enables payments with no cross border surcharges and processing fees often under one cent. The real momentum, however, is in stablecoins. Global stablecoin payment volume doubled to approximately USD 400 billion in 2025. Visa launched stablecoin settlement on its network, and the U.S. GENIUS Act is establishing a federal framework for payment stablecoins. Stripe's USD 1.1 billion acquisition of Bridge, a stablecoin infrastructure company, signals how seriously the major processors are taking this channel. Operators running an exchange, OTC desk, or fiat on-ramp face a fundamentally different acquirer landscape, mapped in the dedicated payment providers for crypto exchanges hub.
Open banking, enabled by regulation in Europe (PSD2, with PSD3 forthcoming) and expanding to Australia and Brazil, allows authorised third party providers to initiate payments directly from consumer bank accounts. These "Pay by Bank" solutions offer lower fees than card payments, instant settlement, and reduced fraud risk because payments are authenticated through the consumer's own banking app.