Debit and credit cards continue to be in trend, while the use of checks and cash is declining. Contactless payment is experiencing its boom and is increasingly used in mobile payments

Due to the current pandemic situation, the digitalization of the payment industry has advanced very rapidly. More and more consumers are paying digitally, and less and less in cash. The most common methods of digital payment in stores are cards or mobile wallets like Apple Pay, which are seeing a rapid increase in usage and thus seem to represent the future of payments.

Similarly, as consumers increasingly use smartphones for shopping, various payment applications are becoming more popular among all generations, online stores are slowly beginning to overshadow retail. Changes are even occurring in larger industries where checks and cards have been popular until now.

Growth Lower than Inflation

According to Insider Intelligence, debit and credit cards continue to be in trend, while the use of checks and cash is declining. Contactless payment is experiencing its boom and is increasingly used in mobile payments.

Thanks to increased spending and payment via smartphones, online shopping has risen to a value of $794 billion, which is a record 14.4 percent of total retail in the U.S. in 2020. In-store purchasing volume decreased by just over three percent in 2020, but still holds the majority of sales.

The digitalization of payments continues to spread. It is predicted that by 2024, credit card payments will increase from $1.75 billion according to 2019 estimates to $1.82 billion.

High consumer credit appetites and incentive reward programs will attract even greater spending and thus contribute even more to the growth of the digital payment sector. However, this growth will be weaker than inflation.

{embed_digitalno_izdanje}{/embed_digitalno_izdanje}