US sees significant fall in cash transactions

The unavailability of goods and many retailers’ closures will drive the decrease

cash transactions

US sees significant fall in cash transactions. Source:

The economic slowdown in the US, caused by the COVID-19 outbreak, resulted in the reduction of transactions’ number and value, GlobalData found.

At the same time, GlobalData’s Pre-COVID-19 forecasts saw total transactions rising at a compound annual growth rate (CAGR) of 7.6% between 2019 and 2023. Although, this has now been revised to 4.5%, mainly since the CAGR for cash payments falling from 2.5% to -1.5% in the same period.

The decline in overall spending will be somewhat offset by a rise in online payments. Wary consumers will stay home and use the online channel to purchase goods in order to avoid exposing themselves to the disease
Ravi Sharma, Banking and Payments Analyst at GlobalData

Besides, forecasts predict steady declines for cash payments by 2023. However, as to the card payments, they will witness a consistent increase, although at a slower CAGR than originally predicted before the virus outbreak.

Along with that, it is believed that COVID-19 will have a lasting impact on consumer behavior since mobile wallets and contactless payments will gain bigger popularity.