This is a complete list of the top payment methods worldwide, ranked by popularity, security, and convenience.
Specifically, we're going to list:
These payment methods are global or widely used in specific regions or countries.
We also included general trends and insights on the payment industry and consumer preferences at the end of the list.
Thanks to McKinsey and Statista for providing this data.
Without further ado, here are the payment options:
Fun fact: The world's most popular payment method is cash, with over 85% of all consumer transactions worldwide made with physical currency. However, this is slowly changing, with digital and mobile payment methods on the rise.
Let's go over each of these categories, in more detail.
1. Cash: The classic form of payment, cash consists of physical currency notes and coins. It’s widely accepted but can be risky due to loss or theft.
2. Checks: Checks are written orders to pay a specified amount from one person or organization to another. They were popular before digital alternatives but have declined in use due to their inconvenience and processing time.
3. Money Orders: Money orders are prepaid certificates issued by banks or other financial institutions. They’re a secure way to transfer funds, especially for larger amounts, but require physical handling.
4. Bank Drafts: Also known as cashier’s checks, bank drafts are guaranteed payment instruments issued by a bank. They’re commonly used for large transactions, such as real estate purchases.]
These payment methods are considered traditional as they have been used for a long time and are still widely used today, especially in developing countries with limited access to digital payment methods.
5. Debit Cards: Debit cards are linked to a bank account and allow users to make purchases or withdraw cash directly from their account. They’re widely accepted and allow for easy tracking of expenses.
6. Credit Cards: Credit cards allow users to borrow money from a bank or financial institution to make purchases. They’re accepted worldwide and offer various rewards and benefits.
7. Bank Transfers: Bank transfers, also known as wire transfers or EFTs (Electronic Funds Transfers), are electronic transfers of funds between two bank accounts. They’re commonly used for large or international transactions.
8. Direct Debits: Direct debits, also known as automatic payments, allow merchants to pull funds directly from a user’s bank account on a recurring basis. They’re commonly used for bills and subscriptions.
9. Wire Transfers: Wire transfers, also known as bank-to-bank transfers, are electronic transfers of funds between different banks. They’re commonly used for international transactions and large amounts.
10. EFT: EFT is an electronic transfer of funds from one bank account to another, typically using a computer-based system. It’s commonly used for bill payments and online purchases.
Bank-based payment methods are popular due to their convenience and security, as they’re backed by reputable financial institutions. However, they may come with fees and limit access to those without bank accounts.
11. PayPal: PayPal is an online payment system that allows users to make purchases or transfer funds to others using their email address. It’s widely accepted and offers buyer protection.
12. Google Pay: Google Pay is a digital wallet and online payment system that allows users to make purchases or transfer funds using their Google account. It’s widely accepted and available on most Android devices.
13. Apple Pay: Apple Pay is a digital wallet and mobile payment service that allows users to make purchases or transfer funds using their Apple devices. It’s widely accepted and offers secure and convenient transactions.
14. Amazon Pay: Amazon Pay is an online payment service that allows users to make purchases or transfer funds using their Amazon account. It’s widely accepted on various websites and offers quick and easy transactions.
15. Samsung Pay: Samsung Pay is a mobile payment system that allows users to make purchases or transfer funds using their Samsung devices. It’s widely accepted and offers contactless payments.
16. Venmo: Venmo is a peer-to-peer payment service that allows users to send and receive money from friends and family. It’s widely used for splitting bills and paying back debts.
17. Zelle: Zelle is a peer-to-peer payment service that allows users to send and receive money to and from friends and family directly through their bank accounts. It’s widely available through various banks and financial institutions.
18. Square: Square is a mobile payment and financial services platform that offers small businesses tools to accept credit and debit card payments, track sales and inventory, and manage other financial aspects.
19. Stripe: Stripe is an online payment processing platform that allows businesses to accept credit and debit card payments on their website or app. It’s widely used by online businesses.
20. Alipay: Alipay is a digital wallet and mobile payment service in China that allows users to make payments and transfer funds using their mobile devices. It’s widely accepted in China and has over one billion users.
21 WeChat Pay: WeChat Pay is a mobile payment service embedded into the popular messaging app, WeChat, in China. It allows users to make payments and transfer funds using their mobile devices.
22. Skrill: Skrill is an online payment system and digital wallet that allows users to make purchases or transfer funds to and from others. It’s widely accepted and offers various features, such as peer-to-peer money transfers and cryptocurrency purchases.
23. Neteller: Neteller is an online payment system and e-wallet that allows users to make purchases, transfer funds to and from others, and manage their finances. It’s widely used by merchants and online businesses.
Digital and online payment methods offer speed, convenience, and security for both users and merchants. They’re also becoming more widely accepted as digital transactions are becoming the norm.
24. Mobile Banking Apps: Mobile banking apps allow users to manage their finances, transfer funds, and make payments using their mobile devices. They’re offered by banks and financial institutions.
25. Mobile Wallets: Mobile wallets, such as M-Pesa (widely used in Kenya), allow users to store funds digitally and make payments using their mobile devices. They’re commonly used in developing countries with limited access to traditional banking.
26. QR Code Payments: QR code payments allow users to make purchases or transfer funds by scanning a QR code with their mobile device. They’re widely used in China and gaining popularity in other regions.
27. Text-to-Pay: Text-to-pay services allow users to make purchases or transfer funds by sending a text message using their mobile device. It’s commonly used for micropayments, such as purchasing digital content or making donations.
Mobile payment methods offer convenience and accessibility, as users can make transactions on-the-go using their mobile devices. They’re also becoming more popular due to the rise of smartphones and mobile internet usage.
28. Contactless Cards: Contactless cards, also known as tap-and-go or NFC (Near Field Communication) cards, allow users to make payments by tapping their card on a card reader. They’re commonly used for small transactions and offer a quick and convenient payment experience.
29. NFC Payments: NFC payments allow users to make payments by tapping their smartphone or smartwatch on a card reader. They’re widely used in countries with a high adoption of contactless technology and offer a contactless payment experience.
30. RFID Payments: RFID (Radio-Frequency Identification) payments use a chip or tag to store and transmit data, allowing users to make contactless payments by waving or tapping their chip-enabled device on a card reader. They’re commonly used for public transportation and toll payments.
Contactless payment methods offer a fast and convenient payment experience, reducing the need for physical contact and handling of cash or cards. They’re also becoming more widely accepted globally as technology advances.
31. Bitcoin: Bitcoin is the first and most popular cryptocurrency, based on blockchain technology, that allows users to make peer-to-peer transactions without the need for a central authority.
32. Ethereum: Ethereum is a decentralized platform that runs smart contracts and allows for the creation of decentralized applications (DApps). Its native currency, Ether, is used for transactions and as a store of value.
33. Litecoin: Litecoin is a cryptocurrency that operates similarly to Bitcoin but has faster transaction processing times and lower fees.
34. Ripple (XRP): Ripple is a real-time gross settlement system and currency exchange network that facilitates cross-border payments and currency exchanges. Its native currency, XRP, is used for transactions.
35. Bitcoin Cash: Bitcoin Cash is a fork of Bitcoin that aims at increasing the scalability of the Bitcoin network by increasing the block size limit. It’s used for peer-to-peer transactions and as a store of value.
36. Stablecoins: Stablecoins are cryptocurrencies designed to maintain a stable value, typically by pegging their value to a fiat currency or another asset. They’re used for transactions and as a store of value, offering stability in an often volatile market.
Cryptocurrencies offer a decentralized alternative to traditional currencies, allowing for secure and fast transactions without the involvement of financial institutions or intermediaries. However, they’re still considered highly volatile and not widely accepted by merchants.
37. Buy Now, Pay Later Services: Buy now, pay later services, such as Afterpay and Klarna, allow users to make purchases and pay for them in installments over time. They’re commonly used by younger generations and offer an alternative to traditional credit cards.
38. Central Bank Digital Currencies (CBDCs): CBDCs are digital versions of fiat currencies issued and regulated by central banks. They aim to offer a secure, instant, and cost-effective form of digital payment.
39. Biometric Payments: Biometric payments use a user's physical characteristics, such as fingerprint or facial recognition, to authorize transactions. They offer a more secure authentication method and eliminate the need for physical payment cards.
40. Wearable Payments: Wearable payments use smart devices, such as smartwatches and fitness trackers, to make contactless payments. They offer convenience and ease of use, especially for users who engage in physical activities.
Alternative and emerging payment methods aim to offer new, innovative ways to make transactions and manage finances. They’re gaining popularity and may become more widely used in the future.
41. Prepaid Cards: Prepaid cards, also known as stored-value cards, are preloaded with a specific amount of money and can be used for purchases until the balance is depleted. They’re commonly used for budgeting and online purchases.
42. Gift Cards: Gift cards are prepaid cards issued by retailers and can be used to make purchases at a specific store or group of stores. They’re commonly used as gifts or for personal use.
43. Loyalty Points: Loyalty points are rewards earned through loyalty programs offered by businesses and can be used for purchases or discounts. They’re commonly used by frequent customers or to incentivize purchases.
44. Barter and Trade: Barter and trade involve exchanging goods or services for other goods or services without the use of traditional currency. It’s commonly used in developing countries or among small businesses.
45. Postal Payments: Postal payments involve sending money through the mail using a money order or other secure method. They’re commonly used for international transfers or for those without access to traditional banks.
These payment methods offer specific uses or serve specific groups of people and are widely used in various regions. They’re not as popular as other methods but fulfill a specific need.
These trends highlight the industry's resilience and the ongoing shift toward digital payment methods.
1. Global Payments Revenue Growth: In 2022, global payments revenue grew by double digits for the second consecutive year, reaching an all-time high of over $2.2 trillion. This growth was driven by sustained expansion in India due to cash displacement, moving it into the top five countries for payments revenues.
2. Interest-Based Revenue: For the first time in several years, interest-based revenue contributed nearly half of the overall revenue growth in the payments industry.
3. Cash Usage Decline: Globally, cash usage declined by nearly four percentage points in 2022.
4. Electronic Transactions Growth: Over the past five years, the growth rate for electronic transactions has been nearly triple the overall growth in payments revenue.
5. Geographic Distribution:
6. Cross-Border Consumer Payments: Cross-border consumer payments (C2B and C2C) revenues increased at double-digit rates in 2022, accelerating from high single digits in 2021.
7. Commercial Payments: Both commercial payments (B2B and B2C) grew by 10%, somewhat slower than the post-pandemic surge in 2021.
8. Mobile Payments Adoption: Consumers are rapidly adopting mobile payments as a primary method.
9. Buy Now, Pay Later (BNPL): BNPL services are gaining popularity in e-commerce, allowing consumers to purchase and pay later in installments.
10. POS Financing: Point-of-sale (POS) financing is becoming more prevalent in offline shopping across various countries.
Cash and checks are declining.
Digital payments like mobile wallets and PayPal are growing.
Contactless payments are increasing due to speed and hygiene.
Cryptocurrencies are slowly gaining acceptance despite volatility.
Buy now, pay later and biometric payments are rising.
The industry prioritizes speed, convenience, and security.
There are better ways to pay, the questions remains:
How is technology making this available to the open market?
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