Credit cards and wallets are popular, with $7.6 trillion in cash transactions

The world saw a rise in digital payments over cash at the time of purchase

Cash transactions are declining in India, now only 27 percent of payments are by cash

AHMEDABAD: The amount of cash in payments made by customers at the point of sale at shops, malls or counters across the world is decreasing due to the measures taken by various governments to stop cash transactions and digital payments. In the year 2021, cash payments of about 11.6 lakh crore dollars (about Rs. 950 lakh crore) have decreased to 7.6 lakh crore dollars (about Rs. 623 lakh crore) at the end of 2022, it has been concluded in the FIS Global Payment Report. According to the forecast of this report, the volume of cash transactions will further decrease to 6 trillion dollars in the year 2026.

As the popularity of United Payment Interface (UPI) and payment wallets are increasing in India, over-the-counter payments in cash are also declining in India, the report said.

According to FIS, in 2019, 71 percent of transactions were done through cash over the counter or point of sale, which has reduced to 27 percent in 2022. The report also states that the reason most financial transactions are digital is because more and more purchases are being seen online after the Corona epidemic in 2020 and 2021.

In India, only five percent of transactions were done through digital wallet in 2019, which is estimated to be around 35 percent now. However, with the growing prevalence of digital services and easy access to credit, purchases on credit are also on the rise. A total of 15 percent of transactions on e-commerce platforms in the country are borrowing (credit card 11 percent and buy today pay later 4 percent) transactions. Apart from this, at the point of sale, 17 percent of credit card purchases and two percent of purchases against credit are being seen.

- How customers pay globally...

Credit cards are a popular resource globally, although usage is still very limited in India. In the year 2022, consumers paid about 1.3 lakh crore dollars through credit cards at the time of purchase over the counter or on e-commerce platforms.

Like Paytm, Google Pay in India, Alipay, Apple and PayPal are popular in the world. A total of 18 lakh crores of financial transactions were done through wallets in the world.

With the increased prevalence of digital technology, the use of transferring money from one's own account to the shopper's account is also increasing. Account-to-account transactions stood at $525 billion.

Customers paid a total of $7.6 lakh crore in cash.