Nederlanders continue to shift from cash withdrawals

The country’s declining cash usage is expected to boost

the Netherlands

Nederlanders continue to shift from cash withdrawals. Source: unsplash.com

GlobalData has found that the total transaction value in the Netherlands is expected to see the growth of 0.9% compound annual growth rate (CAGR) by 2023.

At the same time, total ATM withdrawals are anticipated to drop at a CAGR of 7% in the same period since the Netherlands shifts to online and contactless payments.

Online spending is likely to surge as wary customers are staying home and using online channels to purchase goods. The number of payments via iDEAL, an e-commerce payment system, increased by 31% in the last week of March 2020, compared to the same period last year. Contactless payments are expected to surge as consumers and vendors look to avoid disease vectors
Ravi Sharma, Payments Analyst at GlobalData

The report also highlights a profound effect on the country’s retail and hospitality industries as consumer spending has decreased.

According to information, credit card and debit card spending will still rise overall, although, this will be at the expense of cash. The data shows that food and drink account for 29.1% of the country’s total debit card transaction value.

The study assumes that the increasing acceptance of e-payments at merchant stores will support the adoption of mobile wallets as well.

We’ve reported that the quarterly number of PayPal payments grew 85% over the last three years, reaching 3.2 billion in Q1 2020.

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