Mobile proximity and peer-to-peer (P2P) payments have hit the mainstream, thanks to a pandemic-driven upswing in digital payments that is set to last. This trend is leading providers to diversify their offerings and compete for share of the market.

Paytm expanded its BNPL solution with Postpaid Mini and PhonePe launched a digital payment solution for cash on delivery orders—helping expand the country’s digital payment solutions.

Google eyes Japanese payments acquisition: The tech giant is in negotiations to buy cashless payments startup pring, which could help strengthen its business in Japan as the country begins to embrace digital payments.

The mandate will let consumers use their mobile wallets at any UPI-accepting merchant and send payments to consumers using different wallet brands—making way for increased digital payment adoption.

By solving a multitude of SMB pain points, payfacs have been instrumental in bringing millions of smaller merchants into the digital payments ecosystem, along with the multiple billions of dollars in payment flows those merchants generate.

Here’s a look at some of the survey key findings about consumer sentiment around digital payments:. Consumers think digital billing is easier to use. Around two-thirds of respondents used telehealth to receive care in 2020—and over half said they prefer the ease and safety of contactless, digital payment methods when paying for their care.

And as digital payment channels replace the ability to use checks or cash, more consumers may turn to credit cards to handle their bills, positioning issuers and card networks to tap into the payments volume opportunity.

Digital payments and commerce firms need to integrate with multiple faster payment systems to avoid providing a subpar client experience, considering these firms are built around existing payment processes. This includes firms that facilitate digital payments for businesses, like Stripe, and those that handle digital payments for consumers, such as PayPal.

Although it’s already involved in the space, it can use Zettle’s tech—like its card reader machine—to push further into the market now that many small businesses are looking to upgrade their POS with digital payment solutions. Pressing into the small-business space can help sustain PayPal’s revenue growth, which in Q1 hit 29% annually on a constant currency basis.

Patients want innovative digital payment options that mirror their experiences in retail—and platforms like Waystar and Cedar’s can deliver them. Over 37% of patients indicated they'd prefer paying their bill via portal, while 32% said they would prefer paying for their visit on a mobile app, according to a June US Bank survey of 1,113 US adults.

Though it's possible that the fee increases could result in some merchants leaving PayPal, the payment and retail solutions that it offers merchants likely outweigh these risks—especially considering that digital payment offerings like those offered by PayPal will become much more important as consumers continue shopping online and adopting contactless payment methods.

By solving a multitude of SMB pain points, payfacs have been instrumental in bringing millions of smaller merchants into the digital payments ecosystem, along with the multiple billions of dollars in payment flows those merchants generate.

The pandemic accelerated this shift to digital payments as consumers’ interest in staying safe drove up demand for touchless payments—growth that’s expected to continue into 2021 and beyond. This will create an opportunity for new entrants—such as blockchain-based players—to flourish in the space. Benefits. Blockchain can cut costs while reducing friction and fraud in digital payments.

More people may have been willing to try this method in the last year after the pandemic pushed consumers to adopt new digital payment forms, including contactless payments. And this trend looks sticky: 93% of global consumers would consider using at least one emerging payment trend in the next year, per Mastercard.

Square’s hardware wallet plan could extend its reach in the growing crypto market and could lead to global collaborations—for example, the firm might lend its offering to countries like El Salvador to provide digital payment solutions to unbanked populations. And while Dorsey’s tweets only mentioned Bitcoin, Square could expand the wallet to include other digital currencies, opening up new use cases.

Expanded access to digital payments. As more brands actively promote contactless payments, new players are stepping into the ring. Most notable among these has been PayPal, which enabled QR code payments in May 2020. This move could encourage adoption of the technology among its 305 million users, especially as other players add popular retail partners that may bring customers onboard.