A Blog by Jonathan Low

 

Mar 1, 2021

In-Store Payments By Digital Wallet In 2020 Surpassed Cash For First Time

Spurred by the pandemic, electronic payments are becoming dominant. JL

Liz Kiesche reports in Seeking Alpha:

For the first time, payments using mobile digital wallets overtook cash payments on in-store purchases on a global basis last year. Cash usage dropped 10% in 2020 to account for only one-fifth of all face-to-face payments worldwide; use of cash for in-store payments fell by half  or more in Canada, the U.K., France, Norway, Sweden, and Australia. Cash in the U.S. made $1T of store payments last year, down from $1.4T in 2019. The Asia-Pacific region leads in the use mobile wallets, with 40% of in-store payments.

  • In the year of the pandemic, consumers are pulling out their digital wallets more often than they are physical wallets when they pay in store, according to a FIS study.
  • For the first time, payments using mobile digital wallets overtook cash payments on in-store purchases on a global basis last year.
  • "The global pandemic has brought a cashless future closer on the horizon," said Jim Johnson, head of Merchant Solutions at FIS.
  • Among insights from the study:
  • Cash usage dropped 10 percentage points in 2020 to account for only one-fifth of all face-to-face payments worldwide; use of cash for in-store payments fell by half  or more in Canada, the U.K., France, Norway, Sweden, and Australia.
  • Cash payments in the U.S. made up $1T of store payments last year, down from $1.4T in 2019.
  • The Asia-Pacific region leads in the use mobile wallets, with about 40% of in-store payments in that region being conducted through contactless payments.
  • Use of mobile wallets accelerated across all regions in 2020 and now accounts for about 10% of payment methods in North America, 8% in Middle-East-Africa, 7% in Europe, and 6% in Latin America.
  • The study projects that by 2024, cash will make up less than 10% of in-store payments in the U.S. and just 13% of payments worldwide. Digital wallets are expected to account for more than 33% of all in-store payments worldwide and 16% of all in-store payments in the U.S.
  • Total ecommerce spending jumped 19% last year to $4.6T in value, the biggest increase in five years, the study found. It could grow to $7.3T by 2024.
  • Gobally, usage of digital wallet-based ecommerce transactions rose 7% in 2020; by 2024 digital wallets will account for more than half of all ecommerce payments worldwide, the study predicts.
  • Adoption of buy-now-pay-later transaction methods continues to rise rapidly in Europe and North America and is expected to double by 2024.
  • Digital wallet companies include Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG), Samsung (OTC:SSNLF), PayPal (NASDAQ:PYPL), Square (NYSE:SQ), Amazon (NASDAQ:AMZN), Adyen (OTCPK:ADYEY), Facebook (NASDAQ:FB). AAPL, GOOG, PYPL, AMZN, and SQ all outpaced the S&P 500 in in the past year:


1 comments:

daisyt762 said...

Cricut Maker is a prominent craft machine that can cut a number of materials and turn them into different designs quickly. You can use your Cricut machine by connecting it to your PC and start making crafts. It is also essential for you to download and install Cricut Design Space from cricut.com/setup. Complete the setup process and begin the craft creation now.
www.cricut.com/setup

Post a Comment