JACKSONVILLE, Fla.—Cash purchases fell to historic lows in 2020 as consumers shifted their payment preferences to contactless technologies such as mobile wallets, according to a new report.
Cash transactions represented just 20.5% of global point-of-sale volume in 2020, down from 30.2% in 2019, an FIS study reveals.
In North America, cash transactions totaled 11.4% of transactions at the point of sale in 2020, down from 14.6% in 2019.
“Mobile wallets and prepaid cards were the primary beneficiaries of cash’s decline. The use of mobile wallets at the point of sale totaled 9.6% of POS transactions in 2020, up from 6% in 2019, a 60% increase. In 2024, the use of mobile wallets is projected to hit 15.5% of POS transactions,” stated Digital Transactions in its analysis.
Prepaid cards more than doubled as a percentage of POS transactions, accounting for a 3.9% share in 2020 compared to 1.9% in 2019, the study shows.