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Nearly half of consumers to use contactless after Covid-19 – new report

Dublin December 14th, 2020

Nearly half of all consumers will only use contactless to pay for goods and services after the Covid-19 crisis – new BOI Payment Acceptance report

“The Covid-altered marketplace” report shows attitudes of consumers to contactless payments, the cashless society, and future non-cash payment methods.

  • 54% of consumers either envisage themselves going cashless in the next five years or already are
  • Nearly half of consumers who believe physical cash should be phased out believe that coins and notes are unhygienic and spread Covid-19
  • More than a third of consumers would use their fingerprint to pay for goods and services
  • 12% of under-35s would use implantable technology, like a microchip beneath the skin, to pay for goods and services
  • BOI Payment Acceptance MD: “Irish consumers are willing to embrace the cashless society, provided adequate supports are in place for vulnerable groups and rural regions.”

 

88% of Irish consumers have used mostly card to pay for goods and services in-store during the pandemic, according to a new report published today by BOI Payment Acceptance, a marketing alliance between the Bank of Ireland and EVO Payments International.
“The Covid-altered marketplace”, a report that analyses the current attitudes of Irish consumers to contactless payments, notes and coins, the cashless society, and future non-cash payment methods, shows that people are wary of using hard currency during and after the pandemic.

Contactless payment in the Covid era

Contactless was a popular payment method before the Covid-19 crisis, especially among the under-35 age group and those living in highly urban areas like Dublin.
Since the crisis, however, more people are using contactless. This is the case across almost all age groups, regions, and social classes.
Just 47% of the over-55 age group say they used contactless payment frequently before the Covid-19 crisis; since the crisis, however, 81% say they are using it more frequently than before.
The rise of the cashless consumer
In a cashless society, notes and coins are no longer used. Instead, financial transactions are carried out entirely digitally via bank cards and electronic devices.
While Ireland has not yet reached that stage, on an individual level as many 54% believe they will be cashless in the next five years or already consider themselves to be. 20% of under-35s say they are cashless now.
Interestingly, the over-55s are the most likely to see themselves becoming cashless by 2025 (47%). Among that age group, 84% say that Covid-19 had had an influence on their decision to move away from notes and coins.
Almost half of all consumers believe that either some or all physical cash should be withdrawn from circulation in the next 10 years.
Among that group, 48% say physical cash should be phased out because coins and notes are unhygienic and spread Covid-19.

Attitudes to future payment methods

Technological advancements mean that we now have more ways to make non-cash payments for goods and services than ever before.
Irish consumers enjoy the convenience of this diversity. Almost two-thirds of consumers would prefer to continue using a mix of card, wearable, and phone technologies to make non-cash payments.
However, there is currently a degree of scepticism about potential future contactless payment methods. Only a third of consumers said they would use biometric technology to pay for a good or service, while even fewer were open to implant, gesture, or voice payment.
Interestingly, those under 35 and over 55 were most open to using any of these future payment methods (42%). The under-35s were most likely to use implantable technology (12%) and gestures (8%), while the 44-54 age group were most likely to use voice commands (11%).

Comment

Brian Cleary, Managing Director of BOI Payment Acceptance, said:
“Consumers are using contactless payment on a massive scale. Those without the technology to support it risk losing custom to competitors. For the government, this report provides a glimpse into the future: Irish consumers are willing to embrace the cashless society, provided adequate supports are in place for vulnerable groups and rural regions.”
Loretta O’Sullivan, BOI Chief Economist, said:
“The COVID-19 pandemic is having a huge impact on our society. It is affecting the way we live, work and shop and while some of these changes will prove transitory, those that yield tangible benefits for consumers and businesses are likely to persist, with longer lasting implications for the economy.”

Download the full report HERE

 

 


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