Digital Wallets Eclipse Cash Globally at Point of Sale for First Time During Pandemic, FIS Study Finds
February 24 2021 - 8:00AM
Business Wire
Key findings
- Digital Wallets Reach Maturity: Contactless payments
made using a digital wallet at the point of sale globally are
growing faster than those made with physical cards.
- Covid’s Toll on Cash: Cash payments dropped below mobile
wallet payments for in-store payments for the first time.
- eCommerce Expands Exponentially: The Global eCommerce
market grew 19 percent to $4.6 trillion and is expected to grow
nearly 60 percent by 2024, driven by mobile commerce.
In 2020, eCommerce spending grew at the fastest rate in five
years, while usage of cash for in-store payments fell sharply, as
global consumers made increasing use of mobile wallets and other
alternative payment methods in 2020 during the pandemic, according
to new report released today from financial technology leader FIS®
(NYSE: FIS).
The annual Global Payments Report by Worldpay from FIS examines
current and future payment trends across 41 countries. Findings
from the 2021 report show that lockdowns, shelter-in-place orders
and personal safety measures during the global health crisis
accelerated the shift toward digital payment methods in every area
of consumer spending.
In-Store Payment Trends
The FIS report found:
- Globally, use of mobile wallets exceeded cash for the first
time for in-store payments. Cash usage dropped 10 percentage points
in 2020 to account for just one-fifth of all face-to-face payments
worldwide.
- Use of cash for in-store payments fell by half or more in
Canada, the U.K., France, Norway, Sweden, and Australia.
- Cash payments in the U.S. made up $1 trillion of in store
payments in 2020, down from $1.4 trillion in 2019.
- The Asia-Pacific region continues to lead in the use of mobile
wallets at point-of-sale, with about 40 percent of in-store
payments in that region now being done through contactless
payments. However, use of mobile wallets accelerated across all
regions in 2020 and now accounts for about 10 percent of payment
methods in North America, 8 percent in Middle-East-Africa, 7
percent in Europe, and 6 percent in Latin America.
The report projects that by 2024, cash will account for less
than 10 percent of in-store payments in the U.S. and just 13
percent of payments worldwide. Over that same time period, the
report projects digital wallet payments to account for more than a
third (33 percent) of all in-store payments (16 percent in the
U.S.).
eCommerce Trends
eCommerce spending accelerated in 2020 during the pandemic. The
FIS report found:
- Total eCommerce spending grew globally 19 percent last year to
$4.6 trillion in value. That growth was the highest in the past
five years and represented two-to-three years of typical
acceleration in a single year. Analysis shows global eCommerce
spending could grow to $7.3 trillion by 2024.
- Globally, usage of digital wallet-based transactions in 2020
grew 7 percent. By 2024, the report projects that digital wallets
will account for more than half of all eCommerce payments
worldwide.
- The reports shows that the adoption of buy-now-pay-later
transaction methods continues to rise rapidly in Europe and North
America and is expected to double by 2024.
- Conversely, usage of traditional payment methods such as cards
and cash-on-delivery are quickly losing share and expected to
account for less than 40 percent of eCommerce transaction payment
methods by 2024.
“Our new research shows that the world is entering a new phase
of adoption of digital payment methods,” said Jim Johnson, Head of
Merchant Solutions at FIS. “The global pandemic has brought a
cashless future closer on the horizon. The implications for
merchants are profound. They must be building technology-centric
strategies to meet the diverse preferences of consumers’ rapidly
changing habits and do so in a way that drives financial inclusion
for underserved communities around the world.
“For those businesses that are savvy enough to embrace smarter
commerce and invest, the growth opportunities will be huge and
potentially game-changing.”
To download the complete copy of the report, including the
methodology, please visit
https://worldpay.globalpaymentsreport.com/
About The Global Payments Report
Figures quoted are taken from data published in The 2021 Global
Payments Report by Worldpay from FIS unless otherwise stated or
referenced. This data was collected using consumer surveys, B2B
surveys and input from local research teams. 46,000 consumers were
surveyed globally. For research methodology, please refer to page
135 of the report. Digital wallets are comprised of mobile wallets
such as Apple Pay, Google Pay and Samsung Pay that work only within
a specific mobile operating system as well as digital wallets such
as Alipay, WeChat Pay, Paytm and Amazon Pay that are operating
system-agnostic.
About FIS
FIS is a leading provider of technology solutions for merchants,
banks and capital markets firms globally. Our employees are
dedicated to advancing the way the world pays, banks and invests by
applying our scale, deep expertise and data-driven insights. We
help our clients use technology in innovative ways to solve
business-critical challenges and deliver superior experiences for
their customers. Headquartered in Jacksonville, Florida, FIS is a
Fortune 500® company and is a member of Standard & Poor’s 500®
Index. To learn more, visit www.fisglobal.com. Follow FIS on
Facebook, LinkedIn and Twitter (@FISGlobal).
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version on businesswire.com: https://www.businesswire.com/news/home/20210224005222/en/
Kim Snider, +1 904.438.6278 Senior Vice President FIS Global
Marketing and Communications kim.snider@fisglobal.com
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