The latest edition of Oaklen Consulting's Industry Watch highlights several studies that specifically document the impact of containment on cashless and cash payments.
The latest edition of Oaklen Consulting's Industry Watch highlights several studies that specifically document the impact of containment on cashless and cash payments.
In the US, the Federal Reserve's 2020 cashless payments figures show that, although card payments have fallen in volume for the first time in 20 years, the amount of card payments has increased.
The drop in volume was very strong in shops (11.7 billion fewer transactions) and was almost offset by remote payments (8.7 billion more transactions). This is also reflected in terms of value, since remote card payments (eCommerce, MOTO, subscription, etc.) exceeded in-store payments ($3.2 billion) with a total of $3.85 billion.
Moreover, eCommerce now accounts for almost 60% of remote payments.
The ERPB provides an overview of the factors explaining the progressive decline of species, despite their strengths, in the context of a health pandemic.
The ERPB also identifies initiatives undertaken to reverse the trend, notably through private companies deploying vending machines, but especially cashback and cash-in-shop services.
It is clear that these functions make it possible to offer a complementary point of access to cash, particularly in rural areas marked by bank desertification, but they must be accompanied by strong legislation at European level, particularly with regard to the economic model.
At the global level, the BIS confirms the trends with a very sharp drop in the frequency of cash withdrawals in 2020 (23% in volume) but an increase in the average withdrawal amount since the drop in amount is limited to 10%.
At the same time, card payments have stagnated overall, with the growth seen in previous years in card payments being transferred to credit transfers. It should be noted that the contactless market share for cards is very high in some countries (70% in the Netherlands, 50% in Switzerland).