Time to say goodbye to cash? How fintech is shaking up payments

Cash is king… or is it?

It may soon be a thing of the past for customers and retailers to prefer cash as a form of payment. Non-cash payment methods weren’t extensively recognized in Europe until the past ten years, but things change quickly in finance.

By 2025, it’s anticipated that more than 80% of transactions will be cashless. The pandemic and a rise in e-commerce have made digital payments more widely used. Due in great part to the legal framework and the adoption of Payments Service Directive 2, Europe is at the forefront of payments innovation (PSD 2). Open Banking and better payment security were mandated by PSD 2 to create more user-friendly payment methods.

Electronic wallets

Customers can load funds onto their accounts through electronic wallets so they can make purchases.

Sticpay asserts that e-wallets will continue to gain ground, and that by 2024, they would be used to conduct 30% of all European e-commerce transactions. One of the oldest and most well-known companies in the electronic wallet industry, Paypal maintains its leadership position. Germany and France follow the UK in terms of usage of Paypal in Europe, which the UK currently leads.

Crypto payments

Consumer interest in cryptocurrencies is rising. According to a Gemini report, 41% of respondents worldwide claimed they are interested in cryptocurrencies, with Europeans showing the greatest interest relative to other continents. B2C businesses are beginning to enter the web3 space in order to follow where consumers are going, including by developing NFTs and accepting cryptocurrency payments despite the fact that cryptocurrencies are notoriously unstable.

Many European businesses have begun to accept cryptocurrencies in a variety of industries, from fashion to aviation. In order to ease cryptocurrency transactions, FARFETCH teamed with Lunu and declared that they would begin to accept cryptocurrencies. A successful trial of bitcoin payments at retail locations owned by FARFETCH Group firms, including as Browns outlets in London and Off-White flagships in Paris, London, and Milan, led to the complete rollout of cryptocurrency acceptance. Gucci, Vueling, Balenciaga, Microsoft, Starbucks, AirBaltic (the first airline to accept Bitcoin in 2014), LOT Polish Airlines, and GetYourGuide are a few more businesses that have declared they accept cryptocurrency payments.

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