How digital payments are taking over the world: tap, click, and pay

According to BIS data, the number of cash withdrawals and small-denomination banknotes decreased in 2022 while the use of digital payments increased globally.

In advanced economies, the average annual number of cashless payments per capita increased by 10% from 426 to 468 in 2022; in emerging market and developing economies, it increased by 18%, from 246 to 291.

In 2022, despite a general increase in prices, the nominal average transaction value of cashless payments either stabilized or continued to drop in the majority of countries.

Credit transfers were the second most popular digital payment method in 2022, after cards. Cheque payments have been declining virtually everywhere.

The usage of “fast payments” has increased to unprecedented levels, according to BIS. The bank notes that although this is still mostly limited to domestic payments, there is a chance to promote system interconnections to improve cross-border payments, which is a G20 objective.

On the other hand, demand for coins and banknotes fell everywhere, but it fell especially hard in developing and rising markets. BIS notes a decline in cash withdrawals and a decline in the average transaction values of cashless payments.

However, BIS cities’ current research indicates that there is still a sizable demand for cash, especially among older individuals and those who prefer to be in charge of their finances.


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[Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. advises its readers and viewers to consult their financial advisors before taking any money-related decisions.]

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