Record growth for digital payments: the cashless evolution

Record growth for digital payments: the cashless evolution

post-author - Mon 30 Nov -0001 - payment , cashless , mobilewallet , instant

Recent years have witnessed an evolution in the mode of payment with a decisive shift towards digital solutions, a phenomenon that has already been established for years in other countries of Europe such as England where even to pay for a coffee a credit card is used.

 

According to a study carried out by the GFK research institute on digital payments, it was found that they are now the preferred payment method for 62% of Italians, where 47% would use credit/debit or ATM cards without any problems to pay any amount even the lowest ones.

 

More generally, 23 percent of consumers have reduced cash payments and, for the future, 31 percent of Italians say they are leaning toward a further decrease in cash payments for purchases over €100.

 

According to the Innovative Payments Observatory of the School of Management of the Politecnico di Milano, driving digital payments in Italy are the use of smartphones, (doubled from the previous year ), and contactless in-store.

 

The spread of cards and POS enabled, along with the raising of the limit for PIN-less payments from €25 to €50, has confirmed the trend. A trend that during 2020 and 2021 has also been linked to fears related to Coronavirus trasmission.

 

But the trend can be attributed to in-store Mobile and Wearable Payments. In fact, payments from smartphones or wearable devices, such as smartwatches, are experiencing triple-digit growth, surpassing the 7 billion euro frontier. Mobile and Wearable payments are doubling their value over 2020 (+106%).

 

The driving factors are as follows:

 

 

  • simplicity;
  • speed;
  • utility.

 

 

Mobile Wallet makes the smartphone the digital wallet, which is being joined by wearables, preferred for contactless payment, but able to speed up the payment experience in some situations.

So, as expected from predictions, instant payments have grown and are being integrated by companies to increase the one-to-one relationship with the consumer and create a unique model between physical and digital stores.

There are various sectors on which to take action to boost the use of digital payments, such as public administration, tourism, renewal of local public transport fleets and healthcare.

 

 Innovative proposals for digitizing customer-supplier payments also continue to arise in the B2B world.

 





The latest news from M&GF

Insurance Premiums for the credit business skyrocket

Insurance Premiums for the credit business skyrocket

In 2021, according to Ania (Associazione Nazionale fra le Imprese Assicuratrici), insurance premiums recorded in the credit sector increased by 14.5 percent (to 644 million) compared to...

FIND OUT MORE
Access to corporate credit also goes through ESG

Access to corporate credit also goes through ESG

Energy saving, sustainability, and corporate welfare are now at the center of policy debates and business plans, and have also now become key factors, along with financial data, in order to evaluate...

FIND OUT MORE
Innovation as a source of value for Credit Management

Innovation as a source of value for Credit Management

In previous articles we have seen what we mean today by innovation in Credit Management and how processes' digitalization is the path that a company should take to improve in efficacy and efficiency...

FIND OUT MORE
Digitalizing Credit Management process: from an artisanal approach to an industrial one

Digitalizing Credit Management process: from an artisanal approach to an industrial one

What do we mean by innovation in Credit Management? How can credit office be considered innovative? These are only some questions that those working in this field should ask, because now more than...

FIND OUT MORE