Contactless in-store payments made with a mobile wallet worldwide exceeded in-store cash payments for the first time during 2020, new research reveals.
Overall, cash usage fell by 10 percentage points, accounting for 20% of all face-to-face payments globally, the Worldpay from FIS Global Payments Report 2021 states, while the number of contactless digital wallet payments at the point of sale is also growing faster than the number of those made with physical cards.
In Canada, the UK, France, Norway, Sweden and Australia in-store cash payments fell by 50% or more in 2020, while the total value of cash payments made in store in the USA dropped from US$1.4tn in 2019 to US$1tn this year.
The Worldpay from FIS report predicts that, by 2024, cash will account for less than 10% of in-store payments in the US and 13% of payments worldwide, while digital wallets will account for one in three in-store payments globally (33%).
“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,” the report says.
“However, 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.”
Digital wallet-based ecommerce transactions also grew by 7% during 2020, the report adds, predicting that, by 2024, “digital wallets will account for more than half of all ecommerce payments worldwide.
“Conversely, usage of traditional payment methods such as cards and cash-on-delivery are quickly losing share and are expected to account for less than 40% of ecommerce transaction payment methods by 2024.”