Paying with plastic has made carrying a check book or a fat roll of cash nearly obsolete in the United States, but the 2012 World Payment Report confirms that cash and credit are no longer king worldwide.
The report shows that global non-cash payments volumes reaching 283 billion in 2010 and early 2011 numbers indicate an estimated 8.2% growth. Consumers worldwide are also embracing the convenience of paying with plastic without accruing the debt of traditional credit cards. Using debit cards instead of cash or credit increased 15% in 2010.
“Debit card transactions continue to take market share from other types of payment methods because they easily allow people to bypass the use of cash,” Kevin Brown, Global Head, Transaction Services Product, International Banking, Royal Bank of Scotland, said in a press release. “As more and more consumers move to mobile and other electronic payments, we’ll continue to see the exponential growth of innovative payment solutions.”
Also growing in customer preference are mobile and electronic payments. The report indicated that mobile payments will approach 17 billion and e-payments will reach 31.4 billion by 2013. There remains a significant potential for growth in these payment forms as banks continue to lag behind advancement of mobile payments due to regulatory constraints.
“Regulation must not be created in regional isolation. Its central goal needs to drive innovation forward, and deliver customer benefits that push industry boundaries,” said Jean Lassignardie, Chief Sales and Marketing Officer, Capgemini Global Financial Services.