The global pandemic has led to a massive surge in contactless payments in Ireland. According to the research data analyzed and published by Comprar Acciones, Q3 2020 saw an increase of 36% year-over-year (YoY) in the number of contactless transactions.
The report reveals that there were more than 182 million payments made, valued at $3.4 billion. Compared to a similar period in 2019, there was an upsurge of 77% in the value of payments made.
There was a slight dip in September in terms of activity, but Q3 3030 still saw at least two million contactless payments every day. On average, consumers spent $36.66 million every single day during the three-month period.
Moreover, consumers made higher value transactions, going from $14.23 in Q3 2019 to $18.56 in Q3 2020. Additionally, the number of contactless-capable cards increased to 1.7 million credit cards and 5.1 million debit cards.
Comparing Q3 and Q2 2020, there was a significant increase in the value of transactions in the third quarter. According to a Banking & Payments Federation Ireland (BPFI) report for Q2 2020, the total value of transactions increased by 26.6% YoY to hit a new high of $2.24 billion.
Over 40% US Consumers Using Cash Less Frequently Following COVID-19 Outbreak
According to insights from S&P Global research, the situation in Ireland mirrors that of the US. A Q3 2020 survey shows that more than 40% of consumers are using cash less often since the beginning of the global pandemic.
For survey respondents aged 38 to 53 years (Gen X), there was a 54% decrease in the use of cash. Similarly, there was a 64% decline for respondents with an income surpassing $150,000.
More than 1 in 6 persons surveyed said that they had made their first ever contactless payments after the start of the pandemic. The adoption rate was highest for Gen Z, at 25%, followed by Millennials at 23%. For Baby Boomers, 10% made their first ever contactless payment in 2020.
The pandemic has also driven increased adoption for existing users, with 29% of consumers saying they had increased their use during the outbreak. Millennials posted the highest gains at 40% while Gen X stood at 39%. 60% of those using contactless payments are active users, making daily or weekly transactions.
The global contactless payment landscape is equally thriving. According to a Grand View Research report, it was worth $1.06 trillion in 2019 based on transaction value. It is projected to expand at a compound annual growth rate (CAGR) of 19.8% from 2020 to 2027. Do you want to know which ones are the best plataformas trading criptomonedas?
Also pointing to the increasing popularity of contactless payments, 48 countries increased spending limits on touchless transactions. On average, there was a 131% increase in transaction limits after the pandemic broke out.
Germany, which has always had a preference for cash, well illustrates this massive shift. It went from 35% cashless transactions before the pandemic to over 50% as of August 2020.
PayPal Payment Volume Grows by 36% to $247 Billion in Q3 2020
In the same vein, the pandemic has driven robust growth in the performance of contactless payment service providers.
A case in point is PayPal, which recorded its strongest growth in company history in payment volume during Q3 2020. In the three-month period, the payment processing company posted a 36% growth in total payments volume, reaching $247 billion.
In comparison, its total payment volume for Q3 2019 was $179 billion. The figure grew to $199 billion in Q4 2019 and then dropped to $191 billion in Q1 2020. Following a COVID-based surge, it shot up to $222 billion in Q2 2020.
PayPal’s revenue for Q3 2020 was $5.46 billion, marking a 25% YoY increase. Around 15 million new accounts were created during the quarter, a growth of 55% YoY. That brought the total number of accounts to 361 million.
On the other hand, the number of transactions rose by 30% to 4 billion. Venmo payment processing volume surged by 61% YoY to $44 billion, compared to 52% YoY growth in Q2 2020.
According to its full-year forecast, PayPal is on track to complete the fiscal year with 70 million new accounts. It anticipates a 30% growth in total payment volume and a 20% to 21% growth in revenue.
Payment processor Fiserv also recorded strong performance during Q3 2020, posting 21% growth in revenue to $3.79 billion. Its acceptance segment grew by 44% while the payments segments had a 20% increase. Together, they offset the 1% decline reported in the fintech segment. For the first nine months of 2020, its revenue soared by 79% YoY to reach $11.02 billion. There was a 303% increase in the acceptance segment during the period and 66% growth in payments. Once again, the fintech segment had a 1% drop.