Digital payment methods are slowly growing in importance as it is becoming an easier and more convenient way to spend money.
Indeed, a report by Capgemini found out that 25% of the world’s cashless transactions will be made through instant payments and e-money by 2025. Some methods such as buy now, pay later, and cryptocurrency will also increase the use of digital payments. This growing demand for digital transactions is explained as a result of the pandemic.
By doing so, these new digital developments lead to lower costs compared to the cost of credit cards and allow more purchases for people without credit cards. It is also a great way for people without a bank account to manage their money. This solution is much more sustainable and makes payments more eco-friendly.
However, these digital payments still have risks, such as cybersecurity risks and frauds. These security issues are an increasing concern and it is then vital to identify who is making a purchase and how it is being made.
The report finally stated that payment revenues in Europe will increase by an average of 5.3% annually from 2020 to 2025, due to the increased use of cashless transactions and online shopping.