Consumers ditching conventional cash for digital wallets

(Image credit: Pixabay)
Audio player loading…

The use of digital wallets (opens in new tab) has grown considerably during the coronavirus outbreak, with many consumers now preferring contactless payments (opens in new tab) and 'hands-free' transactions over conventional cash.

New research by payments platform Paysafe, operator of digital wallet service Skrill, has revealed that 43% of those questioned had reduced traditional cash transactions. Some 32% stated that they’re increasingly using digital wallets to cover bills, pay for goods and services and transfer money overseas.

Paysafe’s research included responses from 8,000 consumers across the UK, US, Canada, Germany, Austria, Bulgaria and Italy. Nearly half (48%) of those questioned stated that they won’t be going back to using conventional cash for payments in the future, with more looking at buying online in order to avoid handling notes and coins.

Digital wallets

Lorenzo Pellegrino, CEO of Skrill, comments: “COVID-19 continues to be a catalyst for change across the whole payments industry. Consumers seem to be switching to digital offerings, signalling a definite shift in consumer preference for truly frictionless payment methods. Even as cash-based money transfer (opens in new tab) options reopen, preferences towards digital options, induced by the pandemic, are unlikely to subside.”

He continued: “A digital remittances solution such as Skrill Money Transfer is far more cost effective than a traditional bank transfer and has become an essential resource for people across the globe during the COVID-19 crisis. As consumer confidence and awareness of the benefits of digital international remittances continues to grow this may well represent a permanent evolution for the remittances industry.”

Digital wallets (opens in new tab) are increasingly popular with many high-profile companies launching them including the likes of American Express, Apple, Microsoft and Samsung.

Rob Clymo has been a tech journalist for more years than he can actually remember, having started out in the wacky world of print magazines before discovering the power of the internet. Since he's been all-digital he has run the Innovation channel during a few years at Microsoft as well as turning out regular news, reviews, features and other content for the likes of TechRadar, TechRadar Pro, Tom's Guide, Fit&Well, Gizmodo, Shortlist, Automotive Interiors World, Automotive Testing Technology International, Future of Transportation and Electric & Hybrid Vehicle Technology International. In the rare moments he's not working he's usually out and about on one of numerous e-bikes in his collection.