Cashless Payment Growth Set to Increase 8% by 2028

September 13, 2024

A recent report from Capgemini Research Institute highlights a significant shift in payment landscapes, with potential far-reaching implications for the refreshment industry. As cashless transactions continue to rise, vending and micro market operators may need to adapt their strategies to remain competitive in this evolving market.

Key Findings Relevant to Refreshment Operators:

1. North American Cashless Growth: Non-cash transaction volume in North America is projected to increase by 6.4% this year, reaching $252.6 billion. By 2028, it’s expected to jump 7.3% to $338.3 billion.
2. Global Trends: Worldwide, the shift is even more pronounced, with a 16.6% increase expected this year and a 15% rise by 2028.
3. Payment Method Breakdown: By 2028, half of all cashless transactions globally will be made with debit and credit cards. Instant payments will account for 22%, followed by credit transfers at 18%.
4. Digital Wallet Surge: E-commerce payments via digital wallets are set to reach 61% by 2027, up from 50% last year. For in-store payments, digital wallet usage will climb to 46% from 30%.
5. Credit Card Usage to Decrease: Credit card usage is expected to decrease, dropping to 15% for e-commerce and 22% for in-store payments by 2027.

Potential Impact on Refreshment Operators:

1. Cashless Imperative: The rise in non-cash transactions suggests that refreshment operators may need to prioritize cashless payment options in their vending machines and micro markets.
2. Payment Diversity: Operators might consider ensuring their payment systems can handle a variety of methods, including cards, digital wallets, and potentially instant payments.
3. Mobile-First Approach: The surge in digital wallet usage underscores the potential importance of mobile payment compatibility in refreshment operations.
4. Fraud Prevention: As instant payments grow, so do concerns about fraud. Robust security measures may become increasingly important for protecting businesses and customers.
5. Cost Considerations: While adopting new payment technologies could be crucial, implementation costs may need to be carefully considered. Solutions that offer a balance between innovation and affordability might be particularly valuable.

As the payment landscape evolves, refreshment operators who adapt to these changes may be better positioned to meet customer expectations and drive business growth. Staying informed about these trends and viewing this shift as an opportunity to enhance service offerings and operational efficiency could be beneficial for industry players.