As digital payments volume rises, cash remains in mainstream

Global digital payments volumes will increase by an average 10.9 percent through to 2020, reaching nearly 726 billion transactions, according to the World Payments Report 2017.

The WPR, published by consulting, technology and outsourcing firm Capgemini and BNP Paribas, estimates that volumes generated by emerging economies will grow 19.6 percent by 2020 — three times the rate of mature economies.

Emerging Asia, led by China and India, is projected to grow 30.9 percent in transaction volume.

Global noncash transaction volumes grew 11.2 percent to reach 433.1 billion from 2014 to 2015, the highest growth in a decade.

Developing markets drove this growth with a 21.6 percent increase. Mature markets increased by 6.8 percent, a nominal rise of over 6 percent in 2014.

Mobility, connected homes, entertainment, and media are expected to boost noncash transactions in the future, as will alternate channels, including contactless, wearables and augmented reality.

Despite increased adoption of digital payments, cash remains in the mainstream, especially for low-value transactions.