A look back at the 5 seismic trends that shaped payments and commerce in 2022

We anticipated businesses would further invest in refining their digital experiences, beginning with payments. As the year turns its final corner, digital-first economies continue to grow. From 2021 to 2022, digital commerce will increase from $4.88 trillion to $5.49 trillion worldwide.

Organizations are adapting. Of the more than 200 businesses we surveyed, 42.4% reported expanding the digital payment methods offered to better meet the preferences of their customers.* These include adding digital wallets, the ability to send digital invoices and online payment links—all contactless payments. Research confirms contactless payments are increasing exponentially, expected to nearly quadruple in value by 2026.

For businesses, this is a call to ensure that you accept the digital payment methods your customers prefer. Offering the right payment mix, including contactless, can turn your shoppers into buyers.

Our experts forecasted BNPL would become one of the hottest payment trends in 2022. And our prediction didn't underwhelm. As the year has pressed on, BNPL providers, including Affirm and Klarna, have launched physical BNPL cards that consumers use to purchase items and pay off over time. Apple launched its BNPL solution called Apple Pay Later in the US in September, while Affirm extended a BNPL option for Canadian Amazon shoppers. And issuers like American Express, Chase and Citi are expanding BNPL options for their cardholders.

BNPL is not a new concept. Installment payments on big-ticket items have been around for decades. But it is novel. It's pushed businesses and issuers to think differently about extending credit to their customers–even for the smallest items.

The digitization of B2B payments has lagged behind B2C payments historically. But in 2022, we anticipated that more businesses would automate their B2B payments. And that's become the case. Sixty percent of companies are moving from manual B2B payments to digital payments. Why? For many reasons, according to MineralTree's 7th Annual State of AP Report. The top reasons include:

• Supply chain disruptions
• Hybrid work environments
• The Great Resignation

Digitizing B2B payments with accounts payable (AP) automation is the top back-office priority in 2022. It keeps essential goods and services moving with faster payment turnaround times, more transparency and better efficiency. With AP automation, nearly two-thirds of companies processed payments more seamlessly with the same-sized team.

Yes, companies are realizing the benefits of automating B2B payments. But we've yet to reach a tipping point. More adoption is on the horizon.

Our experts suggested that building a connected commerce ecosystem in 2022 would be a priority for businesses to create a frictionless customer journey. Of the businesses we surveyed this year, 41.5% report having invested in the digitization of their customer's shopping experience.* And we predict that number to increase as digital and physical shopping continue to fuse.

Seventy-three percent of all buyers prefer to combine digital and physical shopping. What's more, these shoppers—also known as omnichannel shoppers—spend 10 times more than customers who only buy in store or online.

Companies of all sizes are responding by offering more hybrid shopping experiences like buy online, pickup in store (BOPIS). According to Statista, 59% of businesses plan to provide omnichannel options like BOPIS over the next few years.

Connecting other digital solutions like loyalty programs, online appointments and automated communications help improve your customers' satisfaction with their buying experience.

When your business gets omnichannel commerce right, ecommerce and brick-and-mortar retail work together to deliver seamless payment experiences that your customers expect.

As technology and regulations evolve rapidly, we noted the importance of staying on top of data privacy policies, procedures and protections.

Over the year, new regulations on data privacy emerged. The UK's strong customer authentication (SCA), for example, went into effect in March to protect customers from fraud. In the US, in addition to the American Data and Privacy Protection Act (ADPPA) considered by Congress, at least 35 states and the District of Columbia introduced or considered almost 200 consumer privacy bills in 2022. Multiple states have enacted consumer privacy laws in recent years, some of which will go into effect in 2023, including California, Colorado, Connecticut, Virginia and Utah. In Canada, lawmakers proposed a new federal privacy law in June that will impact businesses if passed.

Our advice remains: Keep on top of regulatory and compliance issues.