The online payment growth is likely to shift consumer behavior so that even when cash payments are safe again they will keep on facing a gradual decline in value and volume
COVID-19 outbreak pushes China towards cashless economy. Source: flickr.com
The cash transactions across China will face significant decline whereas card payments continue to increase over the next four years, according to GlobalData.
The report states that the growth rate for the value of cash transactions before and after the pandemic will drop from a compound annual growth rate (CAGR) of 5% to -4.3%, between 2019 and 2023. The forecast also predicts that the value of card transactions will rise up to 2023, although the post-COVID-19 amended forecasts see a CAGR drop to 10% from 11.8%.
Besides, the shift in annual decline has already been seen because of a rise in online shopping and larger food orders for stockpiling. Furthermore, the World Health Organisation urged to use cards since contactless payments are much safer than cash ones amid the COVID-19 outbreak.
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