The COVID-19 pandemic has put a spotlight on consumer spending habits in times of crisis, and rightfully so. But it’s also important to consider its impact on the payments industry. Here are 3 projections for how the pandemic will shape payments in Europe going forward:
- Cash usage will continue to decline. In fact, the decline in its usage will most likely accelerate as greater numbers of people become accustomed to using cashless payment methods and merchants incentivize digital payment solutions. Overall, cash usage in Europe is expected to decline 11% in 2020.
- Point-of-sale turnover will drop sharply and then rebound. Point-of-sale turnover is expected to hit a low point in the late summer/early autumn, but it will begin to rebound shortly after. Overall, point-of-sale turnover is expected to decline 3% (as compared to its 8% growth between 2018 and 2019).
- Payment acceptance revenues will shrink. Revenue from payment acceptance is projected to decline significantly, although some companies will be more impacted than others. For example, commercial card issues specialized in travel and entertainment will likely face a challenging year. Overall, payment acceptance revenues are expected to drop between 7% and 14%.