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Non-cash payments set to reach 1.96 trillion transactions by 2029 according to Smithers
Non-cash payments set to reach 1.96 trillion transactions by 2029 according to Smithers
Despite an established pedigree as the preferred medium of exchange for thousands of years of human history cash, initially coins, but now banknotes, are increasingly under pressure from digital payment methods – credit/debit cards, credit and bank transfers or electronic wallet applications, and even virtual or cryptocurrencies.
These are also eroding demand for cheques the first non-cash payment method to challenge the dominance of physical currency.
Cash is and remains fundamental to the global economy. It will however face increasing challenges and changes in use across the decade 2019–29: Smithers latest market report The Future of Cash Cycles to 2029 forecasts non-cash payment growth at 10.5% across 2019–29, reaching a total of 1.22 trillion transactions in 2024 and 1.96 trillion in 2029.
"A cashless society cannot be seen yet and is not projectable. The evolution of the world payment landscape will continue to be a mix between physical currency and alternative electronic payment options. It is a core functions of a Central Bank to provide a reliable, sustainable and efficient payment systems, which the general public can use with confidence. Therefore, Central Banks have to support both systems to ensure redundancy: (a) in form of e-payment platform and (b) in form of a cash infrastructure. The future challenge will be to develop and maintain both ecosystems including a cash and cash less infrastructures in a sufficient manner."
