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Cashless payments widening gains on cash worldwide, study finds

January 20, 2017

In 2015, 471 billion cashless payments were made worldwide, an increase of 52 percent since 2011, according to the RBR report, Global Payment Cards Data and Forecasts to 2021.

During the same period, ATM cash withdrawals increased at a slower rate of 33 percent as consumers increasingly migrate from cash to alternative payment methods.

According to RBR, payment cards accounted for 55 percent of cashless payments in 2015 (up from 50 percent in 2011) and represented the largest share of payments in all regions except Asia-Pacific.

The predominance of cards is driven by their common use for retail payments; government and banking community campaigns promoting card use in less-developed markets are making this more widespread.

Cards are often used for comparatively low-value purchases in these markets and so represent a mere 2 percent of the value of all cashless payments in 2015.

The RBR study shows that the share of credit transfers has also increased. They tend to be used for high-value payments, such as salaries and business-to-business payments, and account for 89 percent of the value of cashless payments. Credit transfers are the most frequently used cashless payment instrument in China, where they are a common means of payment for online shopping.

Direct debits are increasing at a steady pace, although their share of cashless payments has fallen since 2011. They are used for recurring payments such as mortgages, rent and utility bills, with particularly high use in western Europe.

The use of checks continues to plummet, accounting for 4 percent of global cashless payments in 2015, down from 10 percent in 2011. RBR found that, even in countries where checks are still relatively common, use is in decline. In the United States, for example, the number of check payments in 2015 was 40 percent below 2011 levels.

"The soaring use of contactless cards for low-value payments as well as immediate payment initiatives, which will facilitate person-to-person mobile payments, will further displace cash usage over the coming years," said RBR’s Chris Herbert.