Covid-19 effects: 43% no longer handle cash
Online payments specialist Paysafe Group has issued an interesting report detailing a survey of consumers across seven countries in Europe and North America, indicating that about a third (27%) of consumers are using digital wallets to transfer money to friends and family, while more than two fifths (43%) no longer handle cash.
The theses behind the Paysafe study entitled Lost in Transaction is that COVID-19 has forced us as consumers to make major adjustments to the way we live, work, and communicate. This inevitably has also affected the way people pay – not only for goods and services, but also how we send money to friends and family.
The study shows that almost a third (30%) of consumers globally said they had given money to friends or family once or twice during the first month of lockdown. A further 20% of consumers made more than two transfers in the month, with 1% doing so at least 11 times. However, they were not using physical means as much to do so, as 43% of consumers reduced their handling of cash due to health concerns.
As a result, digital wallets such as Skrill are becoming the channel of choice for consumers who need to financially support others. With the need for international remittances likely increasing due to global restrictions on movement, 32% of those surveyed stated that they’ve turned to digital wallets as the quickest, most effective and convenient way to transfer money overseas since lockdown began. Only 15% of consumers said they would use some form of physical payment method to send money overseas during the pandemic.
Paysafe’s research demonstrated further ways in which COVID-19 has stimulated a digital shift in the way consumers shop and pay, with 48% of people saying that they will be reducing their cash usage in the future. Additionally, 38% of consumers say they will be shopping online more – even when lockdowns have been fully lifted.
Lorenzo Pellegrino, CEO of Skrill, NETELLER and Income Access at Paysafe, comments:
“COVID-19 continues to be a catalyst for change across the whole payments industry. Consumers seem to be switching to digital offerings, signalling a definite shift in consumer preference for truly frictionless payment methods. Even as cash-based money transfer options reopen, preferences towards digital options, induced by the pandemic, are unlikely to subside.”
“A digital remittances solution such as Skrill Money Transfer is far more cost effective than a traditional bank transfer and has become an essential resource for people across the globe during the COVID-19 crisis. As consumer confidence and awareness of the benefits of digital international remittances continues to grow this may well represent a permanent evolution for the remittances industry.”
About the study
Paysafe’s ongoing Lost in Transaction research reports explore and benchmark payment and financial opinions of both consumers and businesses. Paysafe commissioned Sapio Research to conduct this particular Lost in Transaction study in March and April this year using an online questionnaire. The final results include responses from 8,000 consumers across the UK, US, Canada, Germany, Austria, Bulgaria and Italy, with over 1,000 respondents per market.
Paysafe Group, operator of Skrill and NETELLER, is a leading specialised payments platform and the UK’s largest privately-held payments company. Its core purpose is to enable businesses and consumers to connect and transact seamlessly through industry-leading capabilities in payment processing, digital wallet, card issuing and online cash solutions. With over 20 years of online payment experience, an annualised transactional volume of over US $98 billion, and approximately 3,000 employees located in 12+ global locations, Paysafe connects businesses and consumers across 70 payment types in over 40 currencies around the world. Delivered through an integrated platform, Paysafe solutions are geared toward mobile-initiated transactions, real-time analytics and the convergence between brick-and-mortar and online payments.