More Americans have adopted cashless payment options after the onset of COVID-19

New Ideas in MarketingEssential news for marketers, summarised by YouGov
December 01, 2020, 7:22 AM UTC

Research by Comprar Acciones for Q3 2020 found that 48 countries increased spending limits on touchless transactions.

Since the outbreak of COVID-19, 40% of Americans have used cashless payment options frequently this year. Cash usage among Gen Z dropped 53% and 64% for those with earnings higher than 150K.

Of those polled, more than one in six reported making first contactless payment after the pandemic. Adoption rate among Gen Z was the highest at 25%, followed by millennials at 23%. However, only 10% of Baby Boomers embraced cashless payment.

Existing users (29%) increased contactless payment after the pandemic. Millennials (40%) and Gen Z (39%) were the highest users of contactless. Compound annual growth rate (CAGR) is projected to improve 19.8% for contactless from 2020 to 2027. Companies like PayPal saw their contactless volumes increase 36% YoY.

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