The Ascending of Digital Payments Across the Globe
We all have grown up from paying in cash to one-tap digital payments. There is this entire revolution happening around payments – from physical payments to a cashless society around the globe. Well, but today the question is that where are these digital payments taking us to? What is the future of digital payments?
From a global smartphone, usage with over six billion smartphone users in 2020 (worldwide) is forecasted to grow by several hundred million in the next few years further. China, India, and the United States are the leading with the highest number of smartphone users in the world, according to Statista.
Major Move to a Cashless Society
The impact of novel coronavirus further accelerated digital payments in an unprecedented way. Physical cash went for a toss, and maximum online movements gave it a push. They have gained a lot of traction and popularity across the globe and in years to come.
There is a decline in the usage of ATMs, banks, and other financial institution-based fund transactions. With more sophisticated digital payment platforms, people are adopting easy and instant payment transactions. Europe is ahead in the digital payments market by moving away from cash. In fact, global data reveals that Finland, Sweden, and the UK are most likely to lead the way to a cashless society.
Alongside, China is the global leader in mobile wallet usage, with over 70% of consumers using mobile wallets regularly. China is ahead in digital wallet-based payments and is expected to generate more revenue eventually in the future. While South Korea already has everything in place with the majority of infrastructure and more than half of the country’s 1,600 bank branches not accepting cash deposits or withdrawals. Hence, the country is going to be within the top-three cashless countries by 2022.
While in Latin America, there is high adoption of smartphones with a great potential to pursue app-based banking and payment alternatives. This will eventually lead to digital payments growth and expansion.
Brazil is one of the largest and developed banking industries in Latin America. The Nubank has around 8.5 million customers and plans to expand even more to reach millennials in Mexico and Latin American markets. Recently, Nubank has a valuation of more than 10 billion dollars by the biggest 40 million customers.
On the other hand, India accounts for 71% of all payments by 2025 and gains a spot on the real-time digital payments, according to ‘Prime-Time for Real Time,’ a global report analyzing real-time payments by ACI Worldwide and GlobalData said. The country has 25.5 billion real-time payment transactions standing ahead in the digital payment transactions race.
So what’s next?
We are already witnessing social media-initiated payments, for instance, WhatsApp payments, voice-activated payments, cryptocurrency-based payments, biometric payments that include facial recognition, and fingerprint-approved fund transactions.
There are also NFC and QR codes with safe and fast digital payment movements. These are all cost-effective, convenient, and instant with one-tap flexibility. Therefore, there is an exciting journey coming for the world to embrace and relish digital payments.
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