{"id":2279,"date":"2018-08-21T10:53:18","date_gmt":"2018-08-21T09:53:18","guid":{"rendered":"https:\/\/www.alvantia.com\/?p=2279"},"modified":"2018-08-28T07:31:43","modified_gmt":"2018-08-28T06:31:43","slug":"payment-methods-revolution-15-per-cent","status":"publish","type":"post","link":"https:\/\/www.alvantia.com\/en\/payment-methods-revolution-15-per-cent\/","title":{"rendered":"Payment methods: the revolution is in the 15%"},"content":{"rendered":"

There is a symbiotic relationship between payment methods and economic activity: the evolution of means of payment has historically favoured economic development, and similarly, the evolution of economic activity has led to the modernisation of means of payment.<\/span><\/p>\n

Cash is the most popular means of payment worldwide, used in 85% of all transactions. However, despite the overwhelming prevalence of cash as a payment method, it is slowly declining. And that 15% of non-cash transactions (9.1% credit\/debit cards and 4.6% direct debits\/bank transfers) is where a disruption is now occurring which will affect the entire means of payment system.<\/span><\/p>\n

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Despite these data, we must not forget the substantial differences in payment methods seen in different world regions. For example, in Latin America<\/strong>\u00a061% of the population are outside the banking system, so cash is used as means of payment in 95% of transactions (99% in Peru, 98% in Colombia and 96% in Mexico), except for Brazil, where only 15% of transactions take place in cash, and the number of card operations doubled from 2009 to 2013.\u00a0The fastest-growing channel is credit and debit cards, which represent 81% of non-cash payments.<\/span><\/p>\n

In Spain<\/strong>\u00a0most transactions are paid in cash (84%), and the others are equally split between cards and bank transfers. In credit and debit cards, the number of transactions per inhabitant per year (52) is far from the European Union average (79), and even further from northern Europe (200)<\/span>.<\/span><\/p>\n

Analysis of trends in payment methods<\/span><\/h1>\n

The growth of new payment methods, added to the traditional options, makes it harder for users to distinguish between technologies, products, applications and systems.\u00a0<\/span>It is hoped that there will be convergence and standardisation, depending on users\u2019 needs and expectations, and on the capacity of companies in the sector to create shared solutions. This convergence process is influenced by:<\/span><\/p>\n

1) Global trends<\/strong>: The internet and digital technology increase consumers\u2019 influence and decision-making power:<\/span><\/p>\n