It’s a Whole New World Payment Method Preferences Across the Globe
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While One Country Slowly Loosens Its Dependence on Card-Based Payments, Another Has Sidestepped Plastic Altogether and Is Further Down the Road of Transacting Account-To-Account.
Even where cards dominate, the characteristics of those cards can differ significantly between countries. What role do cash and cards have in payments today, and what does the State of Industry Report conclude as the future of payment methods?
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Cash: A Payment Method of the Past?
In India, where cash dominated just a few years ago, constituting 71% of POS value in 2019, it represented only 27% in 2022. 1
Cash remains the top preferred payment method in Mexico, where 39% of in store transaction value in 2022 was paid in cash. 3
Indonesia has witnessed a remarkable shift in payment dynamics, with cash accounting for 77% of POS value in 2019 but decreasing to 45% in 2022. 2
The diversity of cash penetration was still evident among EU countries in 2022, with Germany and Spain having 39% and 44% of POS spending in cash, respectively, while France saw only 10%. 4
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1-4. Worldpay Global Payments Report 2023
Cards: The Most Used Payment Method Today
Card payments, including both debit and credit, made up 50% of POS payments and 34% of ecommerce payments in 2023. 5
GLOBAL POS PAYMENTS MIX
100%
75%
50%
25%
0%
2023
2019
2022
2020
2021
Digital Wallet
Credit Card
Debit Card
Cash
Prepaid Card
POS Financing
5. Worldpay Global Reports 2019-2023
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Cards: The Most Used Payment Method Today (Cont.)
CREDIT VS. DEBIT SPLIT (VALUE)
100%
75%
50%
25%
0%
Debit Volume
Credit Volume
Other Card Volume
Source: Euromonitor
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Cards: The Most Used Payment Method Today (Cont.)
In the U.S., credit card usage is widespread, with 82% of adults possessing at least one credit card in 2021. 6
Debit cards are reported to account for nearly nine out of every ten cards in Europe as of 2022. 7
Australia and South Korea are two of APAC’s card-dominated countries , and while 60% of all card transactions take place via debit cards in Australia, the South Korean card market is nearly 80% credit cards. 8
6. World Bank Findex 2021 7. paymentscardsandmobile.com/debit-cards-dominate-across-europe-as-cash-recedes-and-digital-grows/ 8. Euromonitor
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Digital: The Future of Payments
In many countries, Digital Payment Methods (DPMs) are already very prevalent, while they are growing fast in others. CMSPI provides Pix, Brazil’s faster payments rail, as a success story on how DPMs have the potential to be the future of payments.
PAYMENT TRANSACTIONS (%)
36%
50%
40%
36%
Launched in November 2020 Pix had a 36% market share of payment transactions in Brazil by Q2 2023, higher than debit and credit cards combined. 9
30%
25%
20%
15% 17%
15%
10%
5%
0%
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Pix
Prepaid Card
Transfers, Others
Ted, Intrabank
Withdrawals
Direct Deposit
Boleto
Credit Card
Debit Card
9. Pix by the Numbers Q4 2023 (hubspotusercontent-na1.net)
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About the State of Industry Report Developed alongside 11 of the world’s leading payments experts, CMSPI’s flagship report aims to empower merchants and advocates with the information they need to execute payments for their organizations in the market today. Want to understand how tokenization works, which payment methods to offer in different geographies, or why payments regulation differs by market? CMSPI’s Insights team has created the SOIR to be the first of its kind, developed with merchant input, to fuel merchant decision-making.
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What you’ll learn in Section 4 of the SOIR
How do payment methods preferences differ across the Americas, Europe, the Middle East, and Asia?
Which card types am I most likely to see in different regions?
How are Account-to-Account payments being developed around the world?
How have different countries approached cash usage?
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Page 10 This document is for informational purposes only and does not guarantee the functionality or features of any CMSPI product or service. CMSPI does not represent nor warrant that this document is complete or error free. Copyright © 2024 CMSPI All rights reserved.
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