Cash transactions in China to see negative growth up to 2023

Monday 6 April 2020 06:40 CET | News

Cash transactions will see significant decline in China due to the coronavirus pandemic while card payments continue to grow over the next four years, according to GlobalData.

GlobalData’s report predicts the growth rate for the value of cash transactions before and after the pandemic to drop from a compound annual growth rate (CAGR) of 5.0% to -4.3%, between 2019 and 2023.

The shift in annual decline is already being seen due to a rise in online shopping and larger food orders for stockpiling. Similarly, contactless payments are much safer than cash ones in the current climate and the World Health Organisation (WHO) urged consumers to use cards.

GlobalData forecasts the value of card transactions to rise in China up to 2023, but the post-Covid-19 amended forecasts see a CAGR drop to 10.0% from 11.8% (2019-2023). The most severe drop in cash payments is set to be in 2020, where GlobalData forecasts it to drop by CNY 3.2 trillion.

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Keywords: cash payments, credit card, cards, shopping, card payments, China, study, GlobalData
Categories: Payments & Commerce | Cards
Countries: China
This article is part of category

Payments & Commerce