Cashless in Covid-19 world: Digital payments to rise by 45% by 2023

File picture: Pexels

File picture: Pexels

Published May 13, 2020

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The Covid-19 crisis has without a doubt impacted the way consumers shop and make payments.

Before the world was hit by the pandemic, consumers went often to the shop and paid for goods with their hard-earned cash.

With social distancing rules and restrictions in place, many were forced to contactless payments and digital wallets as a safer way to manage money.

According to data gathered by AksjeBloggen, the global digital payments market is expected to continue rising in the next few years, reaching approximately R123 trillion in value by 2023.

Digital commerce is the leading revenue stream in the market with a R68 trillion transaction value in 2020.

A survey revealed that online buying and selling of goods and services would remain the largest revenue stream of the global digital payments industry for years to come. It is estimated that it will reach R83 trillion transaction value in 2023.

However, statistics show there will also be a significant rise in mobile POS payments. The dominant upward trend is expected to continue in the following years with mobile payments R39tn worth industry by 2023.

Recent years have also seen a spike in the average transaction value of the mobile POS payments, growing from R8000 in 2017 to R14 000 in 2020. By the end of 2023, it is estimated that this amount will skyrocket to nearly R23 000.

Statistics show that in 2017, more than 4.1bn people all around the world were using digital payments. Since then, the figure jumped 25%, reaching 5.2bn this year.

The following years are set to witness the growing number of users in the digital payments market, reaching 6.1bn by 2023, or almost 50% more compared to 2017 figures. Statistics show that mobile POS payments witnessed the most substantial increase, with the number of users growing from 824 million in 2017 to 1.6bn by 2023.

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