A future without cash: four keys that predict its possible disappearance
Cash has been deflated into new payment methods
ACEA money resource
Users already spend more money with cards than cash. According to Euromonitor International, 2016 was the first year in which this change was appreciated. And the trend continues. This fact is based on Worldline, a firm specialized in payment and transactional services.
Some countries have already climbed into the society’s car without cash. This is the case of Sweden, Belgium and South Korea
In the first place, the incursion of the European Initiative of the Instant Payments, which allows the transfer of amounts into euros into less than ten seconds.
Secondly, the option to buy and pay with voice assistants, machine learning and natural language processing, giving points when using the cards. Ovum has predicted that by 2020, 80% of brands will use chatbots for customer interactions. Shopping experience is quick and saves time.
In addition, cash is very expensive: 1.5% of GDP for national economies, according to MasterCard estimates.
Regulators and banks also value the benefits of a cashless society.
Some countries have already climbed into the society’s car without cash. This is the case of Sweden, India and South Korea. The Swedish central bank, the Riksbank, will forecast less than 0.5% of the value of all payments made in the country in 2020. And since November 2017, the Indian Government has embarked on a policy of demonetization an economy without cash.
We must also pay special attention to the decline in credit cards. The latter is the above all of the PSD2, the second EU Payment Services Directive, which allows you to purchase payments from your customers. In response to this, services such as instant card payments, digital wallets and integrated payments with the IoT are being developed. They are also expanding towards cardless payments, which is most notable with the acquisition of Vocalink by MasterCard.
It is evident that the payment process is accelerated, and the process of cashless payments presents interesting opportunities for issuers, acquirers and businesses.