Future of payments

This article is part of a series of articles on the future of payments. Read more.

Need to know

  • According to the World Payments Report, 2018, the global e-wallet transaction volumes are estimated to be around 41.8 billion in 2016, making up almost 8.6% of all non-cash transactions
  • Emerging markets have doubled market share from 14.1% non-cash transactions in 2006 to 33.7% ten years later
  • Cashless stores represent a fundamental change in the dynamics of the retail environment and an entirely new battleground for brands – consumer interaction is shifting from payment by cash or card to payment by identity
  • Retailers need to find ways to ensure their cashless offer does not exclude people without a bank account or payment app
  • In China, there are supermarkets with different lanes for cash or cashless payments that act as physical manifestation of social stratification between the young and the old and between the urban middle class and those left behind
  • The shift to a cashless society must be planned to ensure lower-income groups are not discriminated against
  • When retailers shift from recognising your money to recognising you, they must consider the real issue of privacy
  • Recognition can be done in privacy-friendly or privacy-unfriendly ways, generally recognition will be based on either authentication (Hello person 123456) or identification (Hello Dave)
  • More than a hygiene factor, how data privacy is handled is now part of the consumer proposition – and identity is the next battleground for brands

Cashless adoption