Almost seven in 10 consumers say the shift to digital payments will likely be permanent – Mastercard global survey

With constraints imposed on our daily lives due to COVID-19, consumers are adopting new payment habits at an accelerated pace, according to a global study by Mastercard conducted in 15 markets. „Consumers are increasingly moving away from cash and opting for contact-free and digital payments experiences – and they don’t expect to go back.”, Mastercard said in a press release.

As our payment behaviors evolve, two notable trends emerge in Mastercard research:

In store, a massive move away from cash: Globally, almost seven in 10 consumers say the shift to digital payments will likely be permanent, and nearly half of consumers plan to use cash less, even after the pandemic subsides, according to a Mastercard weekly survey launched April 27.

Since the pandemic began, nearly half (46%) of respondents in Asia Pacific say they are using cash less often, while two-thirds of Latin American consumers say they are using cash less or not at all. In Europe, which already had the largest adoption of contactless payments of any region, 64 percent say tap and pay is now their preferred way to pay in-store.

A steep increase in e-commerce: As highlighted in Mastercard’s newly released Recovery Insights: Shift to Digital report, e-commerce has reached new heights. Mastercard SpendingPulse¹, which measures retail sales across all payment types including cash and check, shows that United States e-commerce spending grew by 93 percent year-over-year in the month of May. And in April and May, e-commerce as a share of total retail sales reached 33% in the United Kingdom – an unprecedented high (ex. auto, petrol and restaurants). Note that e-commerce follows the Census definition*.

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Survey Methodology

Mastercard proprietary study conducted between April 27-May 17, 2020 among adults 18+. 6,750 interviews were conducted across 15 countries: Australia, Brazil, China, Colombia, France, Germany, India, Italy, Spain, Japan, Mexico, Russia, United Arab Emirates, United Kingdom, and The United States of America.

¹ Mastercard SpendingPulse™ reports on national retail sales across all payment types in select markets around the world. The findings are based on aggregate sales activity in the Mastercard payments network, coupled with survey-based estimates for certain other payment forms, such as cash and check. As such, SpendingPulse™ insights do not in any way contain, reflect or relate to actual Mastercard operational or financial performance, or specific payment-card-issuer data.

*E-commerce sales are sales of goods and services where the buyer places an order, or the price and terms of the sale are negotiated over an Internet, mobile device (M-commerce), extranet, Electronic Data Interchange (EDI) network, electronic mail, or other comparable online system. Payment may or may not be made online.