Bank / Credit Union

Pandemic triggers Ireland’s decline in cash usage

photo provided by iStock

May 14, 2020

Cash payments in Ireland were down  57% as of April 2020. A revised payments market forecast is expecting the value of payments to rise at a compound annual growth rate of 3.3%, which is down from 6.3%, according to a GlobalData release. The decrease stems from the cash ATM withdrawal forecast changing from 0.8% to 2.2%.
 

Ireland's Central Bank said the number of debit payments in volume and value also decreased from 33.6% to 29% in April, but card usage is expected to recover once the lockdown is lifted.

Ireland relies strongly on tourism which has come to a complete halt due to the pandemic.

Travel and accommodations accounted for 36% of the country's total credit card transactions in 2019, according to GlobalData's 2019 Banking and Payments Survey. However, this segment of business, which includes hotels, restaurants, and transport, is expected to be impacted the worst by the pandemic. 

"COVID-19 will have a significant effect on consumer spending," said Ravi Sharma, Payments Analyst at GlobalData. "Loss of income and increased unemployment due to the lockdown will have long-term implications affecting several sectors. The reduced economic activities are already showing impact on card spending."

For more information on how the coronavirus has affected the ATM industry, click here.