Looking at the growing number of point of sale (POS) operations by Payment Service Providers (PSP), there has been a gradual shift towards widespread use of card payments in lieu of cash. Comparing the statistics to North America, China and developing countries like India, the rate of adoption is comparatively lower, mostly attributed to high transaction fees. Despite the emergence of digital payment methods, adoption of card based payments by PSP’s are still on the rise.
The infographic below highlights current trends in Card payments in the EU. Data for this infographic is sourced from European Central Bank, Statistical Data Warehouse.
The average value per card payment has increased to €48.9 which shows a relatively high degree of confidence in the payment method. This along with a 9% increase in the number of cards issued shows a gradual improvement in uptake.
This has naturally translated in an increase in the number of POS payments by 9.5% from 2015. With a higher number of cards circulating in the market, the value of POS payments by cards has amounted to €2294.2 Billion.
Another interesting aspect is the 2.5% reduction in ATM terminals over the last 3 years which has led to a 1.8% decrease in cash withdrawal in ATM’s provided by PSP’s. With the emergence of digital payments, there is a possibility that this reduction in ATM’s could be attributed to the higher cost of operations, thus scoring low on cost-benefit.
In summation, the uptake of card payments has gradually increased over the past 5 years with a comparatively slower adoption of cash. This along with positive sentiment regarding digital payment methods, could signal the marginalization of cash use in a decades time
Please get in touch with us for feedback or general queries regarding this article