Barclaycard Payments, the leading card spending processor in the UK, has provided insights into what key trends in retail and payments can be expected in 2023. The trends highlighted include re-commerce, subscriptions, data analytics, and digital wallets.
Re-commerce, which encompasses recycling, renting, reusing, and reselling, is becoming increasingly popular. Around 71% of businesses now cater to at least one of these trends. In the UK, 47% of Britons have embraced more sustainable shopping methods compared to the previous year, with 46% viewing re-commerce as a way to make a positive environmental and social impact. The rising cost of living crisis has also contributed to the adoption of sustainable shopping, as 43% of consumers are more conscious of their discretionary spending. Sustainable shopping offers a way to manage finances and reduce overall spending during a time of increasing costs.
Barclaycard Payments emphasizes that re-commerce can provide commercial returns for businesses. By launching rental models, reselling services, or expanding second-hand product lines, businesses can not only attract more customers but also boost their revenue.
Subscriptions, despite having a mixed year, still remain popular among consumers. While people have reduced the number of products and services they subscribe to, 34% of Britons use subscriptions to manage their finances in the face of rising costs. Retailers also continue to show strong commitment to subscription-based revenue streams, with 69% believing that the subscription economy will continue to grow. The report suggests that 42% of businesses planning to introduce a subscription offering will do so in the coming year.
With higher prices for energy and raw materials posing challenges to retailers and suppliers, data analytics will play a crucial role in helping them navigate these issues in 2023. Particularly for businesses with complex supply chains, data can provide valuable insights into the companies they trade with, the significance of those suppliers to their operations, and associated risks.
In terms of payment methods, digital wallets have become the most popular option, accounting for 30% of sales. Contactless payments in-store make up 24% of sales, followed by conventional card payments online at 21% and cash at 17%. The popularity of digital wallets, such as Apple Pay, is expected to continue growing. For merchants, it is essential to consider accepting digital wallet services to align with consumer preferences.
Linda Weston, Managing Director and Head of Core Product at Barclaycard, emphasizes the importance for merchants to review and update their payment infrastructure to accommodate the way consumers want to pay.
Looking ahead to 2023, these trends identified by Barclaycard Payments indicate the direction in which the retail and payment industry is heading. Businesses that embrace re-commerce, subscriptions, data analytics, and digital wallets are likely to thrive in the evolving landscape of retail and consumer preferences.
Sources:
1. [Re-commerce Trends](https://www.bankingtech.com/2022/02/the-rise-of-re-commerce/)
2. [Subscription Economy](https://www.pymnts.com/news/payment-methods/2022/barclaycard-payments-forecasts-the-subscription-economy/)
