PURCHASE, N.Y.— The shift to digital payments from cash continues to gain strength, with contactless and tokenized transactions are proving to be “strong tailwinds,” according to a new analysis of Mastercard data.
The analysis of that data by PYMNTS found worldwide gross dollar volume (GDV) of digital payments increased by 10% year over year to $2.3 trillion. In the U.S., GDV increased by 6% to $712 billion with credit growth of 6% with credit growth of 12% and debit growth of 13%.
Overall, cross-border volume increased 18% globally, PYMNTS added.
Mastercard CEO Michael Miebach was quoted by PYMNTS as saying that in terms of macroeconomic trends, the picture remains “mixed.”
The Consumer Balance Sheet
Solid wage growth is supporting healthy consumer spending, and inflation has been moderating, and rate cuts in the U.S. have been delayed. Mastercard is “monitoring … consumer balance sheet health.” The company remains positive about growth, said Miebach, according to PYMNTS.
The trend toward digital payments proceeds apace, said the CEO, who added that “our fast and secure contactless technology has been instrumental in displacing cash, according to the report.
Contactless now represents more than two of every three in-person switched purchase transactions,” PYMNTS added.
‘Flywheel Effect’
Tap to Phone, he told PYMNTS, is live across more than 100 markets, and tokenization is creating a “flywheel effect” as “lower fraud, higher approval rates and a better consumer experience bring more transactions and volume to the Mastercard network.”
Tokenized transactions grew 50% year over year, said Miebach, who added that approximately one in four transactions on the Mastercard network are tokenized today, the report added.
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