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    EDITORIAL How payments opportunities are rising out of recession

    As the world settles into the new normal of global recession, all industries are looking to see what trends are shaping the market and what that might mean for their businesses. While it is too early to say for sure, there are some interesting trends taking shape in telemedia and the wider telecoms market.

    Apple’s app store may be seeing small falls, but in-app buying is booming, with in-app purchases now generating more revenue than advertising. This is good news for the telemedia sector as all those in-app purchases are going to need payment methods.

    According to data presented by SafeBettingSites.com, users will spend around $205bn on in-app purchases in 2022, 10% more than a year ago, while in-app revenues are expected to grow by 6% year-over-year to $220.8bn.

    Although in-app purchases will continue rising at a double-digit growth rate, the entire app market is set to witness the smallest growth in years, says the report. Last year, global app revenues jumped by an impressive 26% year-over-year to $398bn, the highest annual increase in five years. However, in 2022, the entire market is expected to grow by only 8% and hit a $430.9bn value.

    This is backed up by data from  TradingPlatforms.com, which finds that apps spending on the Apple app store has dropped by 3.2% in Q3 2022.

    However, that doesn’t meant that consumers aren’t paying while in the apps. Quite the reverse. And where they spend is changing too. According to the SafeBettingSites data, the most successful non-game app worldwide in terms of revenue was TikTok. The total amount of money spent by customers on the app was $914 million. On the App Store, TikTok came at the top for revenue, while Google Play put it in second place after Google One.

    Getting in here is what PSPs and telemedia billers need to look at doing in 2023.

    Likewise, the business-to-business sector also offers some new opportunities to PSPs. B2B payments is in need of a revolution akin to that seen in consumer markets: businesses want efficient and easy ways to pay. With this sector set to be worth more than $111trn globally by 2027, there is a huge payment opportunity there.

    The rise of Open Banking based payments – such as direct bank transfers, for instance – are starting to take the consumer market by storm. With businesses also now looking for more automated, more secure and more rapid payment services, many of the lessons learned in the consumer market could see the creation of some interesting B2B payment tools.

    This offers the telemedia sector not only an opportunity in creating these services, but also could well help business that have to pay each other – and get paid – across the value chain also benefit.

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