Financial cards and payments were significantly impacted by Coronavirus (COVID-19) during 2020. While the pandemic had a negative effect on overall consumer speeding in this year, it also helped to speed up the ongoing move away from cash. Consumers and retailers tried to avoid handling cash for health reasons, boosting card use, and, in particular, contactless payments. Further growth in e-commerce, with consumers locked down for extended periods, also increased card usage for making payments.
Consumer spending patterns in Eastern Europe were significantly affected by the pandemic in 2020. When possible, people avoided handling cash for hygiene reasons, encouraging greater use of card and, in particular, contactless payments. Debit cards were the main beneficiary of this, with people looking to keep control of their spending in a difficult economic environment.
While cash remains an important payment mode, it continues to lose out to alternative forms of payment. This development is also being supported by growing merchant acceptance of card and contactless payments as well as, in many cases in 2020, an increase in the maximum contactless spending limit on cards. Consumers are therefore increasingly being won over by the convenience of cashless payment methods, particularly via their smartphones. Government policies will also encourage the trend towards cashless transactions.
In spite of the economic impact of COVID-19, the post-pandemic period is expected to see a return to positive annual growth rates for consumer payments from 2021. M-commerce will continue to record dynamic growth over the forecast period, while cash will continue to struggle.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page