Cash has long been the spokesperson of money. However, the emergence of digital payment methods in the last few years has subverted this expectation. According to the statistics, in 2018 only 28% of all payments in the UK were made with cash. This figure is expected to drop to 9% in eight years. Considering the impact of coronavirus, we believe that the cashless trend will only expedite.
Currently, around 7.4 million people in UK are living an almost cashless life. Rather than using cash, they prefer convenient payment methods like contactless cards. Other alternative payment methods include Paypal and Apple Pay. In China, the proportion of mobile payments reached 86% in 2018 – second-highest growth rate in the world! Two leading third-party platforms, Alipay and WeChat Pay, monopolised the Chinese market.
Firstly, they improve the user experience. It’s fast, simple and bypasses the hassle of carrying large amounts of cash. Secondly, it saves the cost of using cash machines and even the manufacturing of physical cash. Additionally, cashless payments are more transparent and secure because everything can be accurately recorded. Such records could not only reduce the risk of corruption and theft, but also help merchants analyse transaction data easier, gaining insider knowledge on their customers.
Nevertheless, we cannot deny the fact that cash is still necessary in some cases. Physical money is still being circulated and lots of people argue it helps them keep to a budget. You are limited by the amount of cash you hold.
Ultimately, the boom of contactless cards and new alternative payment methods like Paypal, AliPay and WeChat Pay, is unlikely to vanish. There is still demand for cash and the popularity of new payment methods will still take time to develop. However, digital payments are an inevitable trend. All businesses must learn to evolve with the new systems of transactions.
As one of the leaders in cross-border payments, Globepay is the expert in providing alternative payment solutions – especially popular Chinese digital payments. We are the official partner of WeChat Pay, Alipay and Union Pay and our professional teams will help you with digital payments! Click here to talk to us and learn more!
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