Despite the increasingly fewer uncertainties that still persist, we know that digitalization will be one of the pillars of future growth. The digital trend that was already observed before the health crisis has accelerated in the last year, confirming a process that is now irreversible, as evidenced by the changes in payment habits.
In the first quarter, card payment transactions increased by 15.2% year-on-year, the largest increase in the historical series. In parallel, cash withdrawals from ATMs plummeted by 20.4% in the same period, following last year’s 31.2% collapse. The increased use of payment methods alternative to cash, such as cards and transfers, anticipates their clear future dominance. What was initially interpreted as a side effect of the health crisis has now been confirmed as an opportunity for many users, previously unaccustomed to new technologies, who now value the convenience, security, and flexibility offered by financial innovation.
It does not make much sense to predict the extinction of cash in Europe as a means of payment, as there are many factors to consider, such as generational and cultural factors, or the traditional consideration of physical money as a safe asset. If cash presents an undeniable advantage for consumers, it is that it represents one available payment option. And if there is something that convinces consumers, it is having the power of choice. Another thing they take very much into account is the opinion of third parties, much more so than companies’ commercial strategies, according to a KPMG survey. In all likelihood, one of the reasons for Bizum’s success and its spectacular reception among Spaniards.
José Luis Martinez Campuzano, spokesperson for the Spanish Banking Association
