Although we are still far from cash disappearing, little by little we are becoming a cashless society. According data of PPRO, in Spain cash represented only 4% of all forms of payment during 2021. Cards, old known, were the most used with 41%, followed by “electronic purses”, with 30%. PaynoPain, a Spanish technology company specialized in the development of online payment tools, summarizes those methods that encouraged the disuse of cash.
The pandemic, still in force, took us away from cash, causing contactless payments to grow 150% since March 2019, according to a new study from Accenture. Already last year, the last National survey on the use of cash 2020 from the Bank of Spain pointed out that more than 70% of those surveyed do not have more than five coins in their portfolio, which normally does not add up to more than 5 euros.
Perhaps it is also a generational issue and millennials no longer carry money in their pockets. And it is because of their ability to streamline processes and reduce the risk of contagion during the pandemic, digital payment methods were definitely consolidated among the bulk of the world population. According to PaynoPain, these were some of the most popular during 2021:
- Contactless payments and wallets: “contactless” methods from mobile phones or other devices such as wearables (watches or other accessories), have become a very popular alternative to the fear of contagion. In the line of contactless payments, the own development, or through large providers, of solutions has grown to offer the possibility of including virtual cards in the “purses” or wallets, to allow payment with the mobile. Cards, old acquaintances, are the most used.
- QR codes: After the end of the confinement, the security measures imposed against Covid-19 have made QR codes gain strength and popularity among a wide range of sectors. One of the sectors that quickly adopted this method was the restoration that, in a generalized way, digitized their letters and menus. But it is not the only use of QR codes that has spread, due to the need for contactless transactions, QR codes are currently used to process payments or complete a financial transaction.
- MoTo payments and Pay by link: From the beginning of the pandemic, businesses focused on minimizing the risk of contagion. In relation to this, the use of payment links sent via email, SMS or WhatsApp (MoTo payments and pay by link), experienced a significant increase, especially in local businesses, since they allowed to dispense with cash and go to the store only to pick up the order, reducing the time of presence in the establishment.
- Peer-to-peer: the percentage of implementation of instant payments between people (peer-to-peer in English) reaches 88% of Spanish banks, according to a survey by the Bank of Spain. This is mainly due to the fact that many entities participate in the payment solution of the Spanish bank, Bizum.
Due to this change in trend, and the greater use of the card, PaynoPain aims to offer simple and innovative solutions, among which products such as its payment gateway stand out. Paylands, which offers its customers a convenient, fast and secure way to charge for their products and services and their electronic wallet technology ChangeIt, a white-label wallet app that can concentrate an infinity of financial and customer loyalty functionalities.
“The cashless trend, along with the convenience and ease associated with users, is favoring the transaction to a cashless society. The advancement of technology opens many doors in the field of digital payments and today many ideas that were unimaginable a few years ago have already come true. The universality of digital payment methods makes more and more users trust this type of system. Currently, regulatory advances show that online payments from any electronic device are safe for both the seller and the buyer. ”, holds Jordi Nebot, CEO and Co-founder of PaynoPain.
