[[{"@context":"http:\/\/schema.org","@type":"Article","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/06\/04\/cashless-society\/#Article","articleBody":"After a year of profound disruption and lessons learned, retailers are working to rebuild smarter in 2021 as they adapt to rapid changes in consumer behavior.\nThe pandemic accelerated a global shift in consumer preferences away from cash toward fast, safe, and convenient digital payments. Contactless cards, e-commerce, and digital wallets are in, while cash is quickly fading into the sunset.\nThis begs the question: Are we careening towards a cashless society?\nAdapting to the way the world embraced new technology and pivoted into a different environment is key for providing consumers with a choice of safe, secure payments \u2013 and key for merchant survival.\nWhat does the future of payments look like?\nFind out how the pandemic impacted consumer payments around the world and how retailers are adapting.\nDownload the report.\nNew research provides insight into how consumer behavior has evolved and how merchants are rebuilding payments to meet consumer needs:\nThe cashless trend is accelerating\nMobile and digital wallets are becoming widespread\nThe skyrocketing growth of e-commerce means payment options are more important than ever\nCashless society? More like cash-light for now\nWe\u2019re not close to being a cashless society \u2013 at least not yet. But consumers were already leaning away from cash and toward more convenient cards, digital, and online payments. A dramatic reduction of face-to-face commerce meant cash wasn\u2019t practical in 2020.\nThe pandemic accelerated cash\u2019s decline by more than three years as cash accounted for just 20.5% of global point-of-sale (POS) volume in 2020. That\u2019s a 32% reduction from 2019.\nMerchants should assess their cash acceptance and infrastructure knowing that the decline of cash is a trend continuing into our foreseeable future. The projected decline for cash is an additional 38% between 2020 and 2024.\n \nGenerational payment methods: How Gen Z, millennials, and boomers compare\n How do Gen Zers, millennials, and boomers compare when it comes to generational payment methods? New data reveals intriguing insights that can help you provide smarter payment experiences. \nWith the rise of a cashless society, mobile and digital wallets reign supreme\u00a0\nMobile wallets gained what cash lost at the point of sale, representing 25.7% of global POS transaction volume in 2020, rising 19.5% over 2019.\nCOVID-19 sped adoption of contactless payment methods, propelling what was already soaring mobile wallet use globally.\nMobile wallets, which are generally used on smartphones, will account for more than a third of global in-store transaction volume by 2024.\nOnline digital wallets are even more dominant and will eclipse all other payment methods combined in global e-commerce by 2024, rising to account for 51.7% of transaction volume.\nDetermining which mobile and digital wallets a merchant accepts should largely be based on region and geography. Payment preferences remain localized, so it\u2019s important for merchants to determine what\u2019s suitable for them to implement, and benefits their consumers.\nDo you know the difference between how your 21 year-old and 65 year-old customers like to pay? This podcast episode proposes that understanding these generational payment preferences is key to future-proofing your organization:\nE-commerce is essential\u00a0commerce\u00a0\nAs the pandemic shuttered\u00a0physical businesses, consumers dollars flowed into whatever channels were available. Global commerce gravitated online\u00a0as home-bound consumers\u00a0turned to their computers and mobile devices to\u00a0shop.\u00a0E-commerce\u00a0grew by 19% in 2020 over 2019,\u00a0the highest\u00a0global\u00a0growth rate in five years.\nThe growth rate accelerated the rate of e-commerce penetration by almost three years, with transactions jumping from 8% in 2019 to 10% in 2020.\nFor example, the use of digital wallets in e-commerce dramatically increased due to the pandemic, rising 44% from 13% in 2019 to 19.8% in 2020.\nOur data projects the rapid growth to continue through 2024 at a rate of 31.2% online and 12.4% of share in store.\nSocial commerce also grew in 2020, with some brands moving towards Facebook or Instagram platforms to enhance the shopping experience and connect with consumers, offering seamless payment methods.\nRetailers are rebuilding via\u00a0partnerships\nAn e-commerce platform with payment options is key for consumers \u2013 having those choices at checkout makes a massive difference when it comes to the consumer experience.\nHowever, as payments become simpler for consumers with the rise of a cashless society, they\u2019re becoming more complicated than ever for merchants. Creating flexible, fault-tolerant payments infrastructure is hard work.\n \nHow retailers can join the future of mobile payments now\n The future of mobile payments is the future of retail, with global mobile payment transaction value expected to reach $14 trillion by 2022. \nPartnerships with technology and logistics providers can help make ease the process. Payment partners are helping merchants manage a paradigm shift so that payment safety, speed, and convenience are a foundation of excellent customer experiences.\nThe pandemic forced even the largest global merchants to engage with e-commerce and delivery platforms to engage customers where they were, and managers today are leveraging partnerships to manage a new era of unprecedented risks.\nDigital payment options, like digital transformation, aren\u2019t optional \u2013 they\u2019re required today\nThe pandemic was the ultimate stress test of business resiliency. For merchants, rebuilding smarter means creating flexible digital infrastructure that can adapt to a default state of rapid change. They need to be agile as we move closer to a cashless society.\nCrafting digital payment solutions for consumers is just the tip of digital transformation. From B2B payments to payment analytics, 2020 showed merchants that digital transformation isn\u2019t something they can put off anymore.\nRebuilding our economies and businesses starts with a clear-eyed understanding of what\u2019s changed and where commerce is heading.\nSeamless. Fast. Personalized. Customers today want it all. Can you deliver? Learn how HERE.","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/06\/04\/cashless-society\/#Article_Person","image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/06\/04\/cashless-society\/#Article_Person_ImageObject","url":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/uploads\/2020\/05\/Patrick-Image-JPEG-150x150.jpg"},"name":"Patrick Ashton","sameAs":"http:\/\/www.linkedin.com\/in\/patrick-ashton-496756a8","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/patrick-ashton\/"},"dateModified":"2021-11-17T23:30:23+00:00","datePublished":"2021-06-04T05:02:04+00:00","description":"Has the cashless society arrived? The pandemic sped adoption of mobile and digital wallets, hastening the demise of cash payments.","headline":"Cashless society: By 2024, digital wallets will eclipse all other payment methods","image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/06\/04\/cashless-society\/#Article_ImageObject","height":"630","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/05\/RebuildPay_1200x375-1200x630.jpg","width":"1200"},"mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2021\/06\/04\/cashless-society\/","name":"Cashless society: By 2024, digital wallets will eclipse all other payment methods","publisher":{"@type":"Organization","@id":"https:\/\/www.the-future-of-commerce.com\/","additionalType":"https:\/\/www.wikidata.org\/wiki\/Q1193236","description":"Relevant, timely information & analysis on commerce trends, both consumer-facing and B2B.","logo":{"@type":"ImageObject","@id":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-new-2x.png?_=1","height":"96","url":"https:\/\/23x6xj3o92m9361dbu2ij362-wpengine.netdna-ssl.com\/wp-content\/themes\/hybris_foc\/assets\/images\/layout\/logo-new-2x.png?_=1","width":"500"},"name":"The Future of Customer Engagement and Experience","sameAs":["https:\/\/podcasts.apple.com\/us\/podcast\/a-call-for-a-better-experience\/id1479742201","https:\/\/twitter.com\/FutureOfCEC","https:\/\/www.linkedin.com\/groups\/4844282","https:\/\/www.the-future-of-commerce.com\/feed\/"],"url":"https:\/\/www.the-future-of-commerce.com\/"},"url":"https:\/\/www.the-future-of-commerce.com\/2021\/06\/04\/cashless-society\/#Article"},{"@type":["Article"],"@id":"https:\/\/www.the-future-of-commerce.com\/2021\/06\/04\/cashless-society\/#Article","@context":{"@vocab":"http:\/\/schema.org\/","kg":"http:\/\/g.co\/kg"},"url":"https:\/\/www.the-future-of-commerce.com\/2021\/06\/04\/cashless-society\/","publisher":[{"@id":"https:\/\/www.the-future-of-commerce.com\/"}],"author":[{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/06\/04\/cashless-society\/#Article_author_Person","image":[{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/06\/04\/cashless-society\/#Article_author_Person_image_ImageObject","url":"https:\/\/cdn-bijap.nitrocdn.com\/AuMaQmessFRMSicXmZsEecJFLEquAyoT\/assets\/static\/optimized\/rev-b3d386d\/wp-content\/uploads\/2020\/05\/Patrick-Image-JPEG-150x150.jpg"}],"sameAs":"http:\/\/www.linkedin.com\/in\/patrick-ashton-496756a8","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/patrick-ashton\/\nhttps:\/\/www.the-future-of-commerce.com\/contributor\/patrick-ashton\/","name":"https:\/\/www.the-future-of-commerce.com\/contributor\/patrick-ashton\/\nhttps:\/\/www.the-future-of-commerce.com\/contributor\/patrick-ashton\/"}],"subjectOf":[{"@type":"FAQPage","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/06\/04\/cashless-society\/#Article_subjectOf_FAQPage","mainEntity":[{"@type":"Question","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/06\/04\/cashless-society\/#subjectOf_FAQPage_mainEntity0","name":"Cashless society? More like cash-light for now","acceptedAnswer":[{"@type":"Answer","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/06\/04\/cashless-society\/#subjectOf_FAQPage_mainEntity0_acceptedAnswer_Answer","text":"We\u2019re not close to being a cashless society \u2013 at least not yet. But consumers were already leaning away from cash and toward more convenient cards<\/a>, digital, and online payments. A dramatic reduction of face-to-face commerce meant cash wasn\u2019t practical in 2020.Merchants should assess their cash acceptance and infrastructure knowing that the decline of cash is a trend continuing into our foreseeable future. The projected decline for cash is an additional 38% between 2020 and 2024."}]},{"@type":"Question","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/06\/04\/cashless-society\/#subjectOf_FAQPage_mainEntity1","name":"With the rise of a cashless society, mobile and digital wallets reign supreme ","acceptedAnswer":[{"@type":"Answer","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/06\/04\/cashless-society\/#subjectOf_FAQPage_mainEntity1_acceptedAnswer_Answer","text":"Mobile wallets gained what cash lost at the point of sale, representing 25.7% of global POS transaction volume in 2020, rising 19.5% over 2019.COVID-19 sped adoption of contactless payment methods, propelling what was already soaring mobile wallet use globally.Determining which mobile and digital wallets a merchant accepts should largely be based on region and geography. Payment preferences remain localized, so it\u2019s important for merchants to determine what\u2019s suitable for them to implement, and benefits their consumers.Do you know the difference between how your 21 year-old and 65 year-old customers like to pay? This podcast episode proposes that understanding these generational payment preferences is key to future-proofing your organization:<\/strong><\/em>