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Sergey Kondratenko is a recognized specialist in a wide range of e-commerce services with experience for many years. Now, Sergey is the owner and leader of a group of companies engaged not only in different segments of e-commerce, but also successfully operating in different jurisdictions, represented on all continents of the world. The main goal is to drive new traffic, create and deliver an online experience that will endear users to the brand, and turn visitors into customers while maximizing overall profitability of the online business.
According to the expert, the growth of digital payments is due to four key factors:
- The pandemic has spurred a shift from cash to contactless digital payments, which has already been noticeable among consumers.
- E-commerce continues to expand and evolve, with global volumes growing 25% between 2019 and 2020 and expected to grow 12-15% annually through 2025.
- Governments are actively supporting the move to cashless payments to improve connectivity, combat tax leakages, and effectively distribute financial aid. This has spurred the adoption of new digital payment systems such as Wave in Ivory Coast, UPI in India and Pix in Brazil.
- Investor interest in digital payments has increased significantly, notes Sergey Kondratenko. He says this has led to the proliferation of fintech companies specialising in these payment forms. For example, in Africa, these companies have attracted about 40% of the total start-up investment in size $5.2 billion in high technology in 2021.
According to analysts, by 2026, the volume of digital payments will reach more than $3 trillion. Similar trends that have dominated the financial industry over the past two decades continue to move forward. They remain popular among both consumers (B2C) and business-to-business (B2B) sectors.
Sergey Kondratenko: Regulation, geographical features and trends in the use of digital payments
Regulatory changes are playing a key role in the payments and fintech space. The following trends can be expected in the coming decades:
 
 
- Expanding the use of international payment platforms. Governments and regulators will consider opportunities to expand collaboration with international payment systems to facilitate money transfers and transactions, which could reduce the cost and increase the accessibility of such transactions for individuals and businesses.
- Regulation of cryptocurrencies. As cryptocurrencies and blockchain technologies become more popular, regulators will establish stricter rules to ensure security and tax compliance. This may include regulation of cryptocurrency exchanges and ICOs (Initial Coin Offerings).
- Digital identity solutions. According to Sergey Kondratenko, the development of digital payments will stimulate the introduction of identification technologies, such as biometric data and electronic passports to ensure the security and convenience of online payments.
- Data protection and cybersecurity. An important element of regulation will be data protection and the fight against cyber threats, as it is important to ensure the security of customers’ personal and financial data in the digital environment.
Successful players in the payments and fintech industry must stay abreast of these changes, monitor updates in the regulatory framework, and adapt their products and services to meet new standards and requirements. Sergey Kondratenko suggests finding out in which countries this issue is most relevant, which means digital payments are used most often.
Regional differences – Sergey Kondratenko
India. India, a leading country in the global digital economy, processed more than 70 billion digital payments in 2022, representing a significant increase from 44 billion in 2021. An average of 280 million transactions are recorded here every day.
India is one of the countries where digital payments are widespread and accessible to common people. It is home to numerous popular digital payment apps such as Paytm and Google Pay. The UPI (Unified Payments Interface) system has become a key tool and facilitates a variety of digital transactions. For example, with Paytm, even small businesses can accept payments using QR codes, facilitating electronic payments between people. The pandemic has boosted online shopping, which supports the development of contactless payments. This also makes digital money transfers more attractive to Indian expatriates living abroad.
China. As Sergey Kondratenko reports, there is a wide range of online payment applications in China, including Alipay, WeChat Pay, Apple Pay, Tenpay and others. The two most common services for digital transactions are AliPay and WeChat Pay. Many companies in China conduct their business digitally, and companies using AliPay also conduct business online. As of December 2021, about 900 million people in China use digital payments. By the end of 2023, the total volume of digital payments is expected to exceed $3.225 billion.
Great Britain. The UK is also active in digital transactions and has a variety of digital wallets. PayPal is one of the most popular in the field of providing banking services. Since the pandemic, there has been a significant growth in online e-commerce payments, and other fintech companies like ACE Union have entered the market offering their solutions. The total volume of digital payments in the UK is estimated to cross the $500 billion mark in 2023. UK residents are increasingly choosing to send money online rather than using cash.
Nigeria is also actively working on the introduction of electronic payment systems. Many apps are available in the country, including Tingg, Paga and Mobile Money.
– The adoption of digital payments in Nigeria has increased significantly since the pandemic despite significant challenges in internet access. In 2020, the volume of real temporary digital payments increased significantly and amounted to $1.9 billion, states Sergey Kondratenko.
According to experts, by 2025, this volume will reach $7.7 billion, and by the end of 2023, the total amount of transactions in digital payments will reach $13 billion.
In Japan, despite advanced technology, a significant portion of transactions are still done in cash. Experts believe that the situation will change as the younger generation begins to conduct business in the online environment actively. However, Japan has also seen a noticeable increase in digital transactions since the pandemic. In 2021, 5.74 billion online digital transactions were recorded. The total volume of digital payments is expected to reach $364 billion by the end of 2023.
USA. The United States ranks seventh in the world in terms of online transactions. Sergey Kondratenko says that PayPal and Google Pay are leaders in the country, which have simplified banking operations and significantly changed the industry. Since the pandemic, the US has seen a significant increase in online shopping. It is estimated that by the end of 2023, the total volume of digital payment transactions will be more than $1,800 billion.
In conclusion, it can be noted that the digital payments sector continues to develop and introduce innovations actively. Companies are constantly improving the user experience, offering various options, and increasingly ensuring the reliability and security of digital transactions.
Startups also play an important role in driving the adoption of digital payment solutions and the adoption of new data technologies. Sergey Kondratenko believes that it is important to pay attention to innovative fintech companies such as ACE Union, especially in the UK. They offer innovative payment solutions like the ACE Card and strive to improve the user experience.
Additionally, ACE Money Transfer is entrusted by millions of expatriates around the world because it provides them with the ability to transfer money to their loved ones quickly and securely. This suggests that trust in online payments and digital transfers continues to grow, so the sector will continue to grow.