Cash is a Ghost of Christmas Past

● Contactless and mobile technology is driving new shopping habits in the run-up to

Whether online or in-store, buying gifts or enjoying Christmas revelry, shoppers around Europe are foregoing cash, opting for the speed and convenience of new payment methods.

With more than 165 million contactless cards and 3.4 million contactless enabled terminals across Europe, usage has grown from 36 per cent in 2015 to 52 per cent in 2016, according to Visa’s 2016 Digital Payments Study. This trend is not solely reserved for younger, more tech-savvy consumers. Contactless uptake has increased across all age demographics, the greatest increase being in the 55-64 age bracket which has witnessed 64 per cent growth since 2015.

Moreover, the adoption of contactless cards is having a tangible impact on other payment methods. Europe-wide, contactless card users are more open to using a mobile device as a payment method in a shop (52 per cent contactless card user v 32 per cent non-contactless card user), to shop via a retailer app (49 per cent v 31 per cent) and to pay for a meal (50 per cent v 30 per cent).

As well as reaping the benefits of contactless payments, consumers are also recognising the benefits of other new payment methods. In 2016, 44 per cent of the people Visa surveyed reported using mobile payment apps, up from 38 per cent last year. Nearly half (46 per cent) agree that having the option of paying using their mobile or wearable device has made it easier to buy the items they need.

This added convenience is also fuelling an uptake in digital wallet usage across a variety of purchasing channels. European consumers are interested in using digital wallets to make purchases face-to-face (37 per cent), through apps (51 per cent), as well as online (56 per cent). Consumers agreed that greater convenience (61 per cent) and the ability to pay anytime, anywhere (59 per cent), were the primary benefits.