Finance & Economics

Cash to account for less than 10% of US in-store payments by 2024

Cash payments dropped below mobile wallet payments for in-store payments for the first time

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Cash to account for less than 10% of US in-store payments by 2024. Source: shutterstock.com

According to the FIS report, by 2024, cash will account for less than 10% of in-store payments in the US and just 13% of payments worldwide.

The research forecasts digital wallet payments to account for more than a third of all in-store payments globally over that same time period.

Globally, the use of mobile wallets exceeded cash for the first time for in-store payments, according to information. Cash usage dropped 10% in 2020 to account for just 1/5 of all face-to-face payments worldwide.

Use of cash for in-store payments fell by half or more in Canada, the UK, France, Norway, Sweden, and Australia. In fact, cash payments in the US made up $1 trillion of in-store payments in 2020, down from $1.4 trillion in 2019.

The research also found that the Asia-Pacific region continues to lead in the use of mobile wallets at point-of-sale, with about 40% of in-store payments in that region now being done through contactless payments.

Nevertheless, the 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.

FIS also revealed that the total e-commerce spending grew globally 19% last year to $4.6 trillion in value. That growth was the highest in the past 5 years and represented two-to-three years of typical acceleration in a single year. The analysis shows global e-commerce spending could grow to $7.3 trillion by 2024.

The report shows that the adoption of buy-now-pay-later transaction methods continues to rise rapidly in Europe and North America and is expected to double by 2024.

Our new research shows that the world is entering a new phase of adoption of digital payment methods. The global pandemic has brought a cashless future closer on the horizon. The implications for merchants are profound. They must be building technology-centric strategies to meet the diverse preferences of consumers’ rapidly changing habits and do so in a way that drives financial inclusion for underserved communities around the world
Jim Johnson, Head of Merchant Solutions at FIS

We’ve reported that less than a third of Brits contact bank customer service.

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