Using Alternative Payments Increases Cashless Transactions

The world is evolving at great speed and the payments they are no exception. One can already speak of the irruption of A new age in the matter driven by experience marked by an accelerated transformation schedule. It is what emerges from the World Payments Report 2021 Posted by Capgemini.

With the Asia-Pacific region leading the way, the demand for digital payment options is greater than ever, along with fast transaction settlements, instant payments, electronic money, failsafe security, and an amazing customer experience.

The report reveals that almost 45% of consumers frequently use digital wallets to make payments (more than 20 transactions per year), compared to 23% in the 2020 survey. In addition to this trend, global B2B moneyless transactions in Cash will rise to nearly 200 billion transactions in 2025, up from 121.5 billion in 2020, according to Capgemini estimates.

“As payments and digital wallets become more the norm than the exception, payment service providers must find a way to meet consumers’ expectations for speed and ease of use,” said Anirban Bose, Capgemini’s CEO of financial services and a member of the group’s executive council. “To embrace the next generation of payments, banks must build an ecosystem of complementary partnerships to keep pace with change”.

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Cashless transactions

As spending recovers, the next generation of payments will drive the growth of cashless transactions. The report revealed that, with spending forecast to rebound in 2021, cashless transactions will increase, with instant payments, e-money and next-generation payment methods (Buy Now Pay Later (BNPL), invisible, biometric and cryptocurrency) driving the growth of cashless transactions.

After eight years of double-digit growth, global growth in cashless transactions slowed to 7.8% in 2020, down from 16.5% in 2019, driven by doubt around uncertain market conditions due to to the pandemic. However, global cashless transactions are set to grow at a CAGR of 18.6% (2020-2025), driven by next-generation payments, and are forecast to reach 1.8 trillion in volume by the end of the period. forecast.

Worldwide, APAC leads the revolution of digital payments. In 2025, the region will account for more than half of global cashless transactions, with an annual growth rate of 28% between 2020 and 2025. More than 500 million Europeans say they will buy online in 2021, (25.5% of which is international).

In Europe, mobile payments and international e-commerce They will accelerate and propel the region beyond 400 billion transactions in 2025 with a CAGR of 13% (2020-2025 approximately). North America is expected to establish cashless payment volumes due to stagnant growth in card transactions and slow adoption of mobile payments.

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