Barclaycard Payments, a prominent card spending processor in the UK, has recently released its predictions for key retail and payment trends in 2023. One significant trend highlighted by the company is the rise of what it calls the ‘Re-commerce Economy.’ This trend encompasses recycling, renting, reusing, and reselling, and 71% of businesses are now catering to at least one of these practices. The report also reveals that 47% of Britons are embracing more sustainable shopping methods compared to the previous year, with 46% seeing re-commerce as a way to make a positive environmental and social impact.

The growth of re-commerce can be partly attributed to the cost-of-living crisis, as 43% of consumers are now more mindful of their discretionary spending. Sustainable shopping is seen as a way to manage finances (41%) and reduce overall spending during a time of rising costs (37%). Additionally, the report suggests that businesses can reap commercial benefits by embracing re-commerce. By offering rental models, reselling services, or expanding second-hand product lines, businesses can increase their customer base and revenue.

Another trend identified by Barclaycard Payments is the increasing popularity of subscriptions. Although there has been a slight reduction in the number of products and services consumers subscribe to, subscriptions are still widely used, with 34% of Britons utilizing them as a way to manage costs. The report highlights that retailers remain highly committed to subscription-based revenue streams, with 69% believing that the subscription economy will continue to grow. In fact, 42% of retailers plan to launch a subscription offering in the next year.

Data analytics is also expected to play an increasingly important role for retailers facing challenges such as higher prices for energy and raw materials. The report emphasizes that data can provide valuable insights into supply chains, suppliers’ importance to business operations, and associated risks. Particularly for businesses with complex supply chains, data analytics can offer a comprehensive picture of their trading partners.

Lastly, Barclaycard Payments notes the significant rise of digital wallets, which now represent the highest single transaction method at 30% of sales. This surpasses contactless payments in-store, conventional card payments online, and cash transactions. The report advises merchants to consider accepting digital wallet services like Apple Pay, as they are becoming increasingly popular among customers. Linda Weston, Managing Director and Head of Core Product at Barclaycard Payments, suggests that merchants should review the preferred payment methods of consumers and ensure their payments infrastructure can support these methods.

In conclusion, Barclaycard Payments has outlined several important trends for the retail and payment industry in 2023. The rise of the Re-commerce Economy, the continued popularity of subscriptions, the growing use of data analytics, and the increasing adoption of digital wallets are expected to shape the industry in the coming year. Retailers and businesses are encouraged to adapt to these trends in order to stay ahead and meet the changing demands of consumers.

Useful links:
Barclaycard Payments 2023 Predictions Report
Future of Retail Report on Reuters