Cashless | Rich Turin | Aug 27, 2022

FIS Global Payment report: here

“Mobile wallets’ share of global POS transactions jumped over 21% YoY in 2021 rising to 28.6% of global POS transaction value, or over US$13.3 trillion.

• Cards are under attack from BNPL, digital wallets, fintechs, and in the near future CBDCs. All will reduce card’s fat margins.
• “Credit card use dropped in 2021 and debit share increased; however, card usage is increasingly shifting to pass-through mobile wallets.
• APAC continues to lead the way in mobile wallet adoption with 44.1% of 2021 POS transaction value; mobile wallets are expected to outpace all other POS payment methods combined in APAC by 2023.”

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• Globally mobile wallets are expected to rise to 38.6% share (over US$22.7 trillion) by 2025.
  
• Credit cards are clearly a good business, and while no one disputes their utility, it comes at a cost. How much it’s worth in a new era where digital connectivity is ubiquitous and CBDCs are in use is the question. Source The Economist: here or without paywall here

• Excluding China, where mobile wallets account for 54% of all transactions, cash and cards are the leading POS payment method in APAC.
• “Cash represents 16% of regional POS transaction value, yet remains the top payment method in half of the APAC markets in our report, including Indonesia (51%), Thailand (63.4%) and Vietnam (53.8%).
• Despite this, cash is projected to fall to less than 8% of POS transaction value in APAC by 2025.”

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In South East Asia most nations prefer digital wallets to cards. This makes sense as more than six in ten people in the region are unbanked. Most of these unbanked will never be part of the credit card system and see digital wallets as their entry point to financial inclusion.

Continue to the full article –> here

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