Contactless payments surge 36% in Ireland, 40% say no to cash in US

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There was a 36% year-over-year (YoY) increase in contactless transactions in Ireland, reaching $3.4 bln in Q3 2020, while the number of transaction surged 77% YoY to 182 mln, according to data analysed by Comprar Acciones.

The global landscape is also thriving. In 2019, the total contactless payment transaction value was $1.06 trln and this is projected to grow at a 19.8% compound annual growth rate (CAGR) between 2020 and 2025, due mainly to Covid-19.

According to a Q3 2020 survey by S&P Global, 40% of US consumers are using cash less frequently since the start of the pandemic.

Results from the survey revealed that there was a 54% drop in the use of cash by Gen X respondents. More than 1 in 6 of those surveyed said they had made their first contactless transaction after the outbreak.

The highest adoption rate was seen among Gen Z respondents, which was at 25%. Millennials followed at 23%, while Baby Boomers were at 10%.

For existing users, 29% said they had increased their use during the pandemic. The increase was highest among millennials, at 40%, followed by Gen X at 39%.

Payment service provider PayPal reported its strongest growth ever in payment volume during Q3 2020. The volume increased by 36% YoY to reach $247 bln, up from $179 bln in Q3 2019.

PayPal’s Q3 2020 revenue shot up by 25% to $5.46 bln and 15 mln new accounts were created bringing the total to 361 mln, while the number of transactions rose by 30% to 4 bln.

Payment processor Fiserv also posted robust performance, growing its revenue by 21% YoY to $3.79 bln. For the first nine months of 2020, its revenue increased by 79% YoY to $11.09 bln.