Note from the CEO: No cash? No problem? Oh, you do need a way to pay for those groceries, lattes and bar tabs it just that you using ‘hard’ cash is, well so last week. Cashless transactions are increasing and cash withdrawals are slowing. Try being in line with someone paying in cash and see how slow the transaction takes. Swipe and go.
Worldwide cashless payments are increasing rapidly while actual cash withdrawals and transactions are slowing markedly. Checks are falling out of favor while electronic payments and payment cards are taking over. This is a trend that began years ago but is now gaining in all corners of the world and, of course, stronger in developed countries. The trend is irreversible.
“In 2015, 471 billion cashless payments were made worldwide, an increase of 52 percent since 2011, according to the RBR report, Global Payment Cards Data and Forecasts to 2021.
During the same period, ATM cash withdrawals increased at a slower rate of 33 percent as consumers increasingly migrate from cash to alternative payment methods.
According to RBR, payment cards accounted for 55 percent of cashless payments in 2015 (up from 50 percent in 2011) and represented the largest share of payments in all regions except Asia-Pacific.
The predominance of cards is driven by their common use for retail payments; government and banking community campaigns promoting card use in less-developed markets are making this more widespread.
Cards are often used for comparatively low-value purchases in these markets and so represent a mere 2 percent of the value of all cashless payments in 2015.
The RBR study shows that the share of credit transfers has also increased.”