The annual World Payments Report, conducted in partnership by Capgemini, The Royal Bank of Scotland, and Efma has announced a 7,1% increase in the global volume of non-cash payments. The increase was greatest in developing countries – reaching 16,9%. While the volume of these payments remains concentrated in North America, Europe and developed countries in the Asia-Pacific (79,5%) developing countries such as China, Brazil and Russia are now some of the fastest growing in the world. In Russia, an increase in card usage and the expansion of banking to rural areas has turned the country into the tenths largest market for non-cash payments.
Cards, and debit cards particularly, remain the largest contributors to growing non-cash payments. This increase is motivated, among others, by changing perceptions in relations to cards and acceptance of smaller amounts by retailers. Debit cards are also the payment instrument behind a myriad of online and mobile payment solutions, further boosting their usage globally. Cash usage remains strong, and cash in circulation actually grew in 2010. However, the amount of non-cash transactions is growing much faster than cash payments, showing a change in payment attitudes.
Despite the crisis, the Eurozone remained the second largest payment in the world. France, Germany and the UK are the greatest contributors of non-cash payments in this region. Poland has become and important market for non-cash payments, partly due to economic growth and partly by initiatives to increase the number of merchants accepting cards and decreasing the number of unbanked in the country. Finland and Sweden are the champions of non-cash transactions and innovative electronic payment solutions, due to a highly developed electronic payments structure and a financially and technologically sophisticated population.
E-Payments and M-Payments have continued to grow in recent years and are estimated at 28.3 billion in 2011. According to the report, the number of e-payments alone could reach 31,4 billion in 2013, driven by the rapid growth of alternative payment solutions and the adaptation of high street retailers to online commerce. M-payments will follow the swift rise in smartphone adoption globally, and could reach 17 billion transactions in 2013.
In the near future, the development of alternative payment solutions and the change in customers’ attitudes to cash are likely to contribute to the steady growth of non-cash payments globally, and in developing countries particularly.
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