The adoption of digital and contactless payment solutions by consumers has been rapidly accelerated by the current pandemic. While the growth in digital payment was an existing trend, the new surge in demand has been clearly visible across Europe. Card network Visa has reported that it has processed an additional 500 million touch-free transactions in 29 European countries since contactless payment limits were increased,1 and a global study from Mastercard notes a 40% increase in contactless payments during the first quarter of 2020.2
However, contrary to public perception, this change has not come at the expense of physical currency, as cash demand also saw a surge in the early stages of the pandemic. The amount of euros in circulation rose by €41.2 billion in the four weeks before April 10 – the biggest jump since the 2008 financial crisis.3
The key message here is that consumers have the choice to use whichever payment method they prefer. And this is a trend that is set to continue beyond the pandemic, according to Netcetera CEO Andrej Vckovski. He says, “People using cards preferred contactless because they could tap the terminal or even use their mobile phones. This trend is set to last beyond the crisis.”