Marching Toward a Digital and Cashless Society

From coin shortages and curbside operations to contactless transactions, how consumers pay for their purchases has been completely transformed during the pandemic. Contactless payments lead marching toward a digital and cashless society. Marketers expect that transformation to continue and expand.

The digital payments industry continues to mature at an accelerated pace. Shoppers will see new options with more features this year as the retail industry prepares for the arrival of a fully cashless society. Merchants who already were providing buy online, pick-up in-store (BOPIS) channels prior to Covid-19 experienced an increase of 70 percent by volume and 58 percent by value this year, according to a recent report by real-time payments provider ACI Worldwide.

This is also a channel to watch closely for fraud, as these same benefits appeal to fraudsters. BOPIS saw a seven percent fraud attempt rate compared to 4.6 percent with other delivery channels. It is not just family staples that are seeing a jump in consumer digital payment options. ACI Worldwide’s report shows a significant increase in global e-commerce transactions since the 2020 holiday period. The retail and gaming sectors are leading the digital charge.

Dating site transactions decreased by half since last year. Transactions in the gaming sector increased 84 percent from January to December 2020 compared to the previous year. The retail sector increased 48 percent by last year’s end compared to 2019.

Last year saw the pandemic drive the highest number of merchants implementing the BOPIS delivery channel for the first time in one year, according to Debbie Guerra, executive vice president at ACI Worldwide.

“We expect this channel to increase as more consumers get used to the convenience of shopping at home and the speed of in-store pickup,” she said.

Generationally, it is mostly Zoomers and Millennials that are the driving force behind the rise of cashless, digital, and app-based payments, according to researchers who track how consumers pay for what they buy.

SMBs and in-store merchants need to meet the growing demand from consumers for cashless/contactless payments if they are going to survive in business.

“Offering contactless payments is simpler than many merchants think. Indeed, many terminals already have the capability to offer contactless payments. Making the shift is a win-win. As merchants meet the consumer demand for contactless payments, they will maintain customers and attract new ones,” said Jodie Kelley, CEO of the Electronic Transactions Association (ETA).

Whether its this generation, or the next or last, payments are an everyday necessity in one form or another. PaidYET was born out of a desire to help businesses get paid quicker and to make it easier for their customers to make payments. Sign up today to get started on the next generation of digital payments.