Data Snack: Out with cash and physical branches, in with contactless and crypto payments
- Hygiene concerns during Covid-19 paved the way for the adoption of contactless payments, but the trend has remained strong post-pandemic too.
- The prevalence of cash is shrinking, with less than half the people surveyed globally using cash on a weekly basis.
Though banking has been going digital for decades now, the COVID-19 pandemic proved to be a catalyst for its acceleration. ATMs, one of digital banking’s most revolutionary innovations, are falling in preference, as consumers increasingly ditch cash for contactless payment options. Similarly, with robust banking applications and websites, visiting physical branches, too, is going out of fashion. Lastly, as digital assets become more prevalent, consumers are now looking to use them for transactions.
Marqeta’s State of Consumer Money Movement Report 2022 studies this shift in consumer preferences. The report surveyed 4000 consumers from the US, UK, and Australia, and gives a look into how consumer banking is changing in the world’s most sophisticated economies. The report argues that consumers’ demand for convenience and accessibility to digital experiences is contributing to contactless payments becoming the new normal.
Consumers are becoming accustomed to mobile wallets
As Covid spread and people became more conscious of their hygiene, contactless payments became popular. However, as the pandemic slowly became less of a concern, that shift in preference remained. On average, 75% of the consumers surveyed globally reported using mobile wallets within the past year.
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