The world market for consumer finance is rebounding following the drop in consumer spending caused by COVID-19. Nearly all the established payment companies saw a drop in processed value, but more consumers adopted financial cards to replace cash, which will fuel additional volume over the forecast period. The shift of retail online and financial product and service innovation, particularly in Asia Pacific, are expected to drive greater volume going forward.
An additional USD22.6 trillion is expected to be processed on financial cards by 2026 with the largest share expected to be on debit cards. Concerns regarding the transmission of COVID-19 from paper money, combined with the shift of retail online, is driving card adoption.
M-commerce increased by more than USD683 billion in 2021, as consumers moved online rapidly during COVID-19. An additional USD4 trillion is predicted over 2021-2026 in the 47 markets directly researched. Proximity m-commerce accounted for 41% of value in 2021.
The immediate impact of the pandemic was a decline in overall consumer spending and a reduction in outstanding consumer credit, accelerating the shift of retail online and reducing friction at the POS. Many of these trends persist and are predicted to become more pronounced over the forecast period.
Consumer credit non-performing loans increased at the start of the pandemic and have stayed at high levels in 2021. The losses may, however, have been kept low due to deferment and postponement offered by lenders, and did not reach previous recession levels. Levels are expected to fall over the forecast period to pre-pandemic levels.
From QR codes to wearable payment technology, Asia Pacific continues to drive payment innovation. Many fintech companies are increasing the value of payment transactions through increased security or providing additional services to merchants and customers.
This is the aggregation of ATM, charge, credit, debit, e-purse and retail cards. Note that smart cards are not included in financial cards.See All of Our Definitions
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