The unavailability of goods and many retailers’ closures will drive the decrease
The economic slowdown in the US, caused by the COVID-19 outbreak, resulted in the reduction of transactions’ number and value, GlobalData found.
At the same time, GlobalData’s Pre-COVID-19 forecasts saw total transactions rising at a compound annual growth rate (CAGR) of 7.6% between 2019 and 2023. Although, this has now been revised to 4.5%, mainly since the CAGR for cash payments falling from 2.5% to -1.5% in the same period.
Besides, forecasts predict steady declines for cash payments by 2023. However, as to the card payments, they will witness a consistent increase, although at a slower CAGR than originally predicted before the virus outbreak.
Along with that, it is believed that COVID-19 will have a lasting impact on consumer behavior since mobile wallets and contactless payments will gain bigger popularity.
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