In recent years, with the advancement of technology, the variety of methods that can be used to make purchases has grown. In this context, the Covid-19 pandemic has accelerated the transition to the cashless future, shaking the digital payments industry and bringing a series of changes and challenges for both merchants and consumers.
The study “Global Payments 2021: Transformation Amid Turbulent Undercurrents“, carried out by McKinsey & Company, shows that in 2020, worldwide, cash payments fell 16%, while the cashless transactions increased 6%.
In Brazil, a survey conducted by the National Confederation of Merchants (CNDL) and the Credit Protection Service (SPC Brasil), in partnership with Sebrae, indicates that, during the pandemic, 45% of respondents made more payments online (including transfers and PIX), while 23% used the credit card more and 21% intensified the use of the debit card and also of cryptocurrencies.
Reinforcing the trend, data from Abecs (Brazilian Association of Service and Credit Card Companies) show that payments with credit and debit cards came to represent 46.4% of household consumption in the last quarter of 2020.
Many experts believe that cashless society is the future. The term is explained as “economic phenomenon in which financial transactions take place electronically, rather than using notes and coins“.
In this scenario, all consumers will have their card or electronic device to process and complete transactions. Credit and debit cards, digital wallets (e-wallets) and applications, QR codes, PIX and Internet banking, Bitcoin, cryptocurrencies, are some examples that already exist.
Outlook for the future
With the significant decline in the use of money, the world is moving, albeit at different speeds, towards a truly cashless global society.
According to Gabriel Roizner, CEO of Mozper, in economies where immersion in digital technologies is more complete, movements are already taking place to eliminate money.
“In Brazil, cashless is still starting, but the trend is growing. An example is the PIX. According to the Central Bank, the system is already used by 71% of the population, who registered 380 million keys”, he comments.
According to the European Payments Council (EPC), cash transactions accounted for just 1% of Sweden’s GDP in 2019, and cash withdrawals have been steadily declining by around 10% annually.
“Some countries are much closer to a cashless future than others: cash accounts for just 5.4% of point-of-sale payments in Canada, 4.5% in Norway, 11.9% in the US, and less than 10% in places like Australia, Hong Kong and Sweden“, he comments.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
It may interest you:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.