As the world becomes increasingly digitized, the need for quick, efficient, and reliable payment methods becomes more vital. Consumers no longer rely on credit and debit cards to complete eCommerce transactions. Now, they use digital wallets, cryptocurrencies, and Buy Now, Pay Later (BNPL) services to pay for goods and services online. 

The digital payment market has never been healthier and is currently estimated to be worth $2.2 trillion. This need for online payment options is unlikely to ever diminish, so, now would be a good time to start a payment portfolio. In this guide, we’ll explore the best payment methods to invest in in 2024. 

Cryptocurrency

There are 300 million crypto users worldwide with the majority of owners using crypto as merely an investment tool. Currently, only a small 20% of owners are using their digital currencies to complete merchant payments. However, many are starting to see the benefits of using cryptocurrency for transactional purposes. 

For example, cryptocurrency provides users with increased anonymity, which is beneficial from a cybersecurity point of view. Plus, being decentralized, crypto transactions come with low transaction fees - in some cases, no transaction fee is imposed. 

Lastly, crypto transactions are faster. As Nick Pappas found out when identifying which online casino pays the quickest, ‘instant withdrawals’ in online casinos are only available when using cryptocurrency. This means that when using the likes of Ethereum or Bitcoin, transactions can be completed within minutes. This is not limited to crypto casinos, with fast withdrawals provided on any site that permits crypto transactions. 

Given the range of benefits that crypto possesses over other payment methods, it is considered by many to be the most promising payment method investment you could make in 2024. Therefore, investing in Bitcoin payment services like BitPay or crypto wallets such as the Coinbase Wallet could be a good idea. Investing in cryptocurrency and associated platforms in general is recommended, with the global crypto market estimated to triple in value by 2030. 

Digital wallets

While credit and debit cards remain the most popular online payment methods in North America, they are close to being replaced by digital wallets. Google Pay, Apple Pay, and PayPal are three of the biggest and most commonplace digital wallets throughout the world. 

Digital wallets are not only popular for completing online transactions, but also for making secure contactless purchases. The widespread use of smartphones has aided this. Should a consumer wish to complete an online or in-person purchase, all they now have to do is select ‘buy’ and the Near-Field Communication (NFC) technology will take care of the rest. 

The easy-to-use nature of digital wallets alongside the security provided by the likes of their Two-Factor Authentication (2FA) measures has made them the main payment method for many consumers. 

Based on recent research, the digital wallet market is set to continue to grow at an exponential rate. Last year, the market size was valued at $8 billion. This is expected to grow at a CAGR of 27.20% from 2024 to 2033 when it will reach a market value of $88.36 billion. Like crypto, it would definitely be worth investing in both established as well as up-and-coming digital wallet products. 

PayPal has remained a mainstay of modern finance for decades now, having been first released in the late 1990s. The company’s revenue share has increased incrementally in the years since and reached $31.028 billion in June 2024. This reflected a year-on-year increase of 8.66%. So, even established digital wallets hold a promising future. 

Buy Now, Pay Later (BNPL) services

BNPL services have really taken off in the last few years due to their seamless smartphone integration. Rather than having to wait and save up, BNPL services allow consumers to purchase products that they don’t have to pay for in full. Instead, the total amount due is divided up over a series of months. Plus, unlike older BNPL services, modern ones come with low and sometimes 0% interest. 

The convenience and flexibility offered by such platforms as Klarna and AfterPay have made them the main payment method for many. They help make money more manageable for people, which is undeniably a good thing. Currently, there are around 380 million BNPL users worldwide. Based on current forecasts, this number is expected to reach 670 million within four years. 

Like digital wallet solutions, BNPL services are expected to make huge growth in the coming years. In 2023, the service type had a market value of $30.38 billion. It is predicted to reach a value of $167.58 billion by 2032 with an annual CAGR of 20.7%. Therefore, BNPL services may be the most lucrative form of payment method that you could invest in in 2024.