For those of us who belong to Generation X, or even the lucky ones known as Millennials, looking back at payment methods in our youth takes us to a time when cash was king, and the predominant method of settlement. Point of sale (POS) terminals, when they arrived, were slow and limited to the major card types such as Visa and Mastercard.
Across the globe, contactless adoption has soared in the past eighteen months. However, the rate of adoption and changes in payment behaviour differ from country to country. Continuing our Contactless 2021 series, Fabien Darné, country manager for France at Ingenico, a Worldline brand, examines the latest trends in the French market and considers why the resilience of local business is providing the catalyst for change.
Contactless transactions have seen huge growth in Europe in the last couple of years, but the pace of progression to digital payments is unique to each nation. Continuing our journey across Europe, we hear from Paolo Temporiti, country manager for Italy at Ingenico, a Worldline brand, who examines the latest contactless trends in the cash dominated Italian market.
Cash payments have been in decline over the past decade, with contactless payment becoming the popular choice thanks to the convenience of a simple tap. This efficiency benefits both merchants and consumers, and since the COVID pandemic swept over the globe, the crash of cash has accelerated with most consumers seeing contactless as the ideal, ‘germ-free’ solution to the unsanitary business of passing change from one sweaty palm to another.
Usually, when you launch a new solution, there is a specific need or problem in mind that is being addressed. However, these initial developments can bear limited reality or cognizance to what the future may hold. Like the statue of David, back when it was merely a sizeable lump of marble, each bit gradually removed revealing its true purpose and the form it would serve.
In 2020, the e-grocery market became a rising phenomenon as consumers, forced to remain at home, switched to online grocery shopping rather than risking a visit to their local supermarket. As a result, average order values increased by 30% in 2020, while the cost of using these services practically fell to zero (1). However, a stabilizing market in 2021 is seeing a slowdown in growth as bricks-and-mortar shops return to the game.