Cashless Society - Foresight Factory · Cashless systems vary greatly based on a country’s...
Transcript of Cashless Society - Foresight Factory · Cashless systems vary greatly based on a country’s...
Cashless Society How technological changes are transforming payment methods
2
The Briefing
Contactless cards, digital wallets, payment apps and biometric authentication continue to transform
the future of payment methods.
The belief that cash is king has been threatened by technological innovations that have made cashless
options more secure, convenient, traceable and ultimately - more attractive to consumers. Contactless
cards, mobile wallets, peer-to-peer app payments have - in many places - eliminated the need for cash
altogether, and have minimised the pain, and delay, caused by waiting in line, counting coins or not having
correct change.
Indeed we are now starting to see the rise of invisible transactions where physical checkouts become
obsolete, as payment can be taken automatically as the consumer leaves the store. In this world, devices
and biometric identifiers make consumers instantly recognisable to retailers and their digital identities, as
tracked in The Digital Passport, will follow consumers in the physical world, making transactions completely
seamless.
The second caveat of cash is its lack of traceability. For the privacy-conscious consumer the anonymity of
cash will remain its central perk - but the average consumer is adopting behaviours of digital tracking,
analytics and control - behaviour that is bleeding into spending and is now simply expected from financial
transactions. The tools which analyse spending and Professionalise Budgeting, can be integrated and
automatic in a Cashless Society, allowing all consumers to exercise control over their in- and outgoings.
When cash is less prominent, the value attached to currency is physiologically altered and numerous
reports point to a consumer likelihood to spend more when paying with plastic. If there is a disconnect
between money and its value, consumers are primed to adopt alternatives to fiat currencies, whether that is
cryptocurrencies or payment in time or skill swapping.
Tracked since: 2009
3
Global differences
Cashless systems vary greatly based on a country’s infrastructure and spending habits. The biggest
cashless story of 2017 is the effect of demonetisation in India. Allegedly initiated to reduce the circulation of
counterfeit money and to stimulate a digital society, the controversial policy has led to reports of a lack of
cash flow for manufacturing, unemployment, and a return to bartering. In a country snapshot, Oxford
Economics forecast that demonetisation will push GDP growth down to 6.7% year over year in early 2017.
Japan is the only country in our research which lags significantly behind in interest in contactless cards. In
Japan, only 13% have used a contactless card compared to 34% globally. Although Japan has had a
contactless payment system for transport in its cities since 1997, Japan is still very much a cash-based
society. Many small retailers and restaurants do not accept card payments at all - even in urban areas.
Periods of deflation and low crime rates have also created little incentive to keep money in banks and many
consumers keep money stored in cash on their person or at home. Similar hurdles have been encountered
in other Asian countries where cash remains important in daily transactions such as in Indonesia, where
online services such as Spotify can still be paid for in cash.
When it comes to mobile payment, China takes the lead - twice the global average have used an app or
swiped their mobile in a transaction. This is unsurprising considering the high mobile ownership amongst
our urban, affluent sample in China and the dominance of apps such as WeChat that combine messaging
with orders and payment, and Alipay, the dominant online payment platform.
In developing markets, m-commerce can provide cashless services to consumers who do not have access
to a traditional bank. In How mobile money is driving economic growth, WEF showed that M-PESA, a
mobile payment system that sends money via SMS, has bolstered financial inclusion in Kenya. According to
the research, in 2013 the value of money that was transferred by M-PESA was equivalent to 40% of
Kenya’s GDP in the same year. M-PESA is successful because it relies on SMS, but many mobile finance
systems rely on smartphones and a fast internet connection - conditions that are not yet ubiquitous.
4
What to do...
Invisible payment?
New ways to pay = new ways to value
Who?
Expectations about the speed and ease of payments are being reshaped and customers expect any
payment delay to be eliminated. As payment processes are streamlined, cashiers decentralised and pain
points removed, payment will become near invisible. Brands who can provide seamlessness or who
experiment with novel ways to pay, such as biometric payments, will win favour.
Payment does not always have to be transactional - it can add value too. Cashless payment can be much
more incremental, allowing consumers to personalise exactly the service or product they wish to buy.
Biometric tracking can allow users to pay according to their enjoyment, and for some brands, the act of
paying can become an experience in itself - and an opportunity for branding.
Interest in contactless card usage is highest among Millennials but real usage is most differentiated by
social grade. 15% more AB respondents use contactless cards than DE. Reasons for not adopting new
payment technology were mostly linked to unfamiliarity, followed by security fears. For the 65+, not owning
technology such as smartphones is also a barrier and brands will have to ensure that they do not alienate
consumers in an effort to be more efficient.
5
What will happen next?
5 years ago Now in 5 years
Some major banks offer NFC-
enabled cards but payments
are capped and not all shop
payment systems have NFC
capability.
Although EE launched the
NFC-enabled Cash on Tap
service in 2013, most
consumers only use mobiles
for mobile banking, not
payment.
Apps are trying to facilitate
peer to peer payments but
often this is still conducted in
cash.
All major banks offer NFC-
enabled cards and card use is
popular in general. Only a
minority of shops do not
accept NFC payments -
some independent retailers or
restaurants are cash only.
New smartphones are NFC-
enabled and most banks
support digital wallets. Mobile
payments are picking up.
Social apps are attempted to
integrate peer payments in
messages with varying
success.
One click payments have
become no click payments.
Seamless payments through
biometrics (eg fingerprint) or
mobile / wearable devices are
ubiquitous.
Mobile payments are
integrated in a contactless
financial passport system that
is a single secure channel for
omnichannel purchases
across devices.
Peer payments are conducted
in messaging streams or by
voice command.
6
Sector Impact
Retail
Imagine a single system in which the path to purchase is
always as simple as one click. It doesn’t stop with
purchasing items in stores without the need to queue at a
till, or at the instant purchase of online items - Cashless
Society holds the possibility for easy payments across
all channels, from news stories to that stranger’s
sunglasses. Anything you want to buy becomes a swipe,
click or snap away. Although it may take some time until
we reach a fully integrated system, convenience will be
essential as a Life on Demand does not have time for the
encumberment of cash or clashing systems. We expect
retailers who offer loyalty cards to better link them to
purchases, instantly recognising valued customers
without the need for them to carry additional cards or
input information.
7
Sector Impact
Digital
Consumer-facing technology will be key to ensuring that
cashless innovations keep up with consumer demand for
speed, convenience and control. Importantly, consumers
will seek technology that is capable of aggregating all of
their spending and payment options, whilst fluidly
switching across devices or to an AI assistant.
8
Sector Impact
Financial Services
Banks either need to lead innovation or partner with third
party contactless providers to ensure that their customers
can always have early access to the newest payment
options. Furthermore, due to the legacy of trust that
banks hold, they may be instrumental in promoting
consumer uptake of contactless services, either by
improving or verifying safety or promoting the simplicity
and security of payments compared to more traditional
payment options. Banks may also be fundamental to
facilitating cross border and social media payments.
9
Sector Impact
Public Sector and Charities
Charitable donations must become as frictionless as
retail purchases. In a future where cash is used less,
charities can no longer rely upon donations from loose
change and instead must look to integrate one tap
cashless donation points.
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Digital,Financial Services
Source: Foresight Factory │ Base: 392-3433 online respondents per country aged 16-64 [Indonesia 16-54], 2017 August
Device most used to do online banking
"And for each of these online activities you said you do, please say which of the following devices you use the most often for doing each of these things?" | Use the internet for banking purposes
0%
20%
40%
60%
80%
100%
So
uth
Ko
rea
Sin
gapore
US
A
Au
str
alia
Ca
na
da
Ja
pa
n
Ire
lan
d
Sw
ed
en
GB
De
nm
ark
Fin
lan
d
Ita
ly
Spain
Fra
nce
Ge
rma
ny
Thaila
nd
Ch
ina
Ind
on
esia
Bra
zil
UA
E
Ind
ia
Me
xic
o
Ma
laysia
Ru
ssia
Not asked - have not done this activity
Laptop
Desktop
Smartphone
Tablet
11
Digital,Financial Services
Source: Foresight Factory │ Base: 392-3433 online respondents per country aged 16-64 [Indonesia 16-54], 2017 August
Using chat messenger to pay a bill in a store/restaurant "Which of the following have you used or would be interested in using a chat messenger service to do?" | Pay a bill in a store or at a restaurant
0%
20%
40%
60%
80%
100%
So
uth
Ko
rea
US
A
Sin
gapore
Au
str
alia
Ca
na
da
Ja
pa
n
Spain
Fra
nce
Ita
ly
GB
Ge
rma
ny
De
nm
ark
Ire
lan
d
Fin
lan
d
Sw
ed
en
Chin
a
Th
aila
nd
Ind
on
esia
Bra
zil
Ind
ia
Me
xic
o
UA
E
Ru
ssia
Ma
laysia
Not applicable
I have not used chat messenger to do this and am not interested
I have not used chat messenger to do this but am interested
I have used chat messenger to do this but would not use it again
I have used chat messenger to do this and would use it again
12
Digital,Public Sector and Charities
Source: Foresight Factory │ Base: 392-3433 online respondents per country aged 16-64 [Indonesia 16-54], 2017 August
Using chat messenger to make a donation to a charity "Which of the following have you used or would be interested in using a chat messenger service to do?" | Make a donation to a charity
0%
20%
40%
60%
80%
100%
So
uth
Ko
rea
US
A
Sin
gapore
Au
str
alia
Ca
na
da
Ja
pa
n
Spain
Ita
ly
Fra
nce
Ge
rma
ny
Ire
lan
d
GB
De
nm
ark
Fin
lan
d
Sw
ed
en
Chin
a
Ind
on
esia
Th
aila
nd
Ind
ia
Bra
zil
UA
E
Me
xic
o
Ma
laysia
Ru
ssia
Not applicable
I have not used chat messenger to do this and am not interested
I have not used chat messenger to do this but am interested
I have used chat messenger to do this but would not use it again
I have used chat messenger to do this and would use it again
13
Digital,Utilities
Source: Foresight Factory │ Base: 392-3433 online respondents per country aged 16-64 [Indonesia 16-54], 2017 August
Using chat messenger to pay a utility bill
"Which of the following have you used or would be interested in using a chat messenger service to do?" | Pay a utility bill
0%
20%
40%
60%
80%
100%
So
uth
Ko
rea
US
A
Sin
gapore
Au
str
alia
Ca
na
da
Ja
pa
n
Spain
Fra
nce
Ita
ly
Ire
lan
d
GB
Ge
rma
ny
Fin
lan
d
Sw
ed
en
De
nm
ark
Chin
a
Th
aila
nd
Ind
on
esia
Ind
ia
Bra
zil
Me
xic
o
UA
E
Ru
ssia
Ma
laysia
Not applicable
I have not used chat messenger to do this and am not interested
I have not used chat messenger to do this but am interested
I have used chat messenger to do this but would not use it again
I have used chat messenger to do this and would use it again
14
Digital,Financial Services
Source: Foresight Factory │ Base: 392-3433 online respondents per country aged 16-64 [Indonesia 16-54], 2017 August
Using chat messenger to transfer money
"Which of the following have you used or would be interested in using a chat messenger service to do?" | Transfer money to another person
0%
20%
40%
60%
80%
100%
So
uth
Ko
rea
Sin
gapore
US
A
Au
str
alia
Ca
na
da
Ja
pa
n
Spain
Fra
nce
Ita
ly
Fin
lan
d
De
nm
ark
Ge
rma
ny
GB
Ire
lan
d
Sw
ed
en
Chin
a
Th
aila
nd
Ind
on
esia
Bra
zil
Ind
ia
Me
xic
o
Ru
ssia
UA
E
Ma
laysia
Not applicable
I have not used chat messenger to do this and am not interested
I have not used chat messenger to do this but am interested
I have used chat messenger to do this but would not use it again
I have used chat messenger to do this and would use it again
15
Digital,Retail
Source: Foresight Factory │ Base: 392-3433 online respondents per country aged 16-64 [Indonesia 16-54], 2017 August
Using chat messenger to buy a product or service "Which of the following have you used or would be interested in using a chat messenger service to do?" | Buy a product or service
0%
20%
40%
60%
80%
100%
So
uth
Ko
rea
Sin
gapore
US
A
Ca
na
da
Au
str
alia
Ja
pa
n
Spain
Fra
nce
Ita
ly
Ge
rma
ny
Ire
lan
d
GB
De
nm
ark
Fin
lan
d
Sw
ed
en
Chin
a
Ind
on
esia
Th
aila
nd
Bra
zil
Me
xic
o
Ind
ia
UA
E
Ma
laysia
Ru
ssia
Not applicable
I have not used chat messenger to do this and am not interested
I have not used chat messenger to do this but am interested
I have used chat messenger to do this but would not use it again
I have used chat messenger to do this and would use it again
16
2025
NOW
Source: Foresight Factory Research | Base: 1000-2000 online respondents per country aged 16+ (China 16-64), 2016 October
Data predictions Biometric payments in 2025 % interested in using their fingerprint as a form of I.D to make purchases by tapping or scanning it | Global average (reported data)
17%
36%
Very interested
Quite interested
27%
15%
20%
Using
Very interested
Quite Interested
63% 54%
In the years to come, growth in FinTech companies will allow
biometric payments to develop. In light of this, we expect more than a quarter of global consumers to be using fingerprint payment by 2025.
I N F L U E N C I N G F A C T O R S
Ownership of biometric payment-enabled devices
Desire for flexible payment options
Concern about security and Identity theft
Anti-password mindset
Aversion to paying by cash and uptake of mobile payment
17
68% 64%
60% 59%
51%
77% 71%
65%
80%
58%
24%
31% 25%
50%
6% 0%
20%
40%
60%
80%
100%
Sweden USA GB China Germany
2016 - Interested 2025 - Interested or using 2025 - Using
Source: Foresight Factory Research | Base: 1000-2000 online respondents per country aged 16+ (China 16-64), 2016 October Note: China - consumers in urban areas and on higher incomes more heavily represented.
Data predictions Biometric payments in 2025 % interested in using their fingerprint as a form of I.D to make purchases by tapping or scanning it
18
0%
20%
40%
60%
80%
100%
EU
ave
rag
e
Ge
rma
ny
Au
str
ia
Spain
Cze
ch
Re
pu
blic
Ita
ly
Pola
nd
UK
Ro
ma
nia
Tu
rke
y
Fra
nce
Ne
the
rla
nd
s
Lu
xe
mb
ou
rg
Belg
ium
US
A
Au
str
alia
Non-cash Cash
Source: Foresight Factory / ING Bank N.V. | Base: 1,000 online respondents per country aged 15+ (500 for Luxembourg), 2017
Perceived levels of security in cash and non-cash payments Please indicate the level of security you believe you have when paying without cash / with cash | Percentage who say “high” or “very high” | 2017
19
0%
20%
40%
60%
80%
100%
EU
ave
rag
e
Ge
rma
ny
Au
str
ia
Spain
Ita
ly
Ne
the
rla
nd
s
Luxem
bourg
Cze
ch
Re
pu
blic
UK
Fra
nce
Belg
ium
Pola
nd
Ro
ma
nia
Tu
rke
y
Au
str
alia
US
A
Non-cash Cash
Source: Foresight Factory / ING Bank N.V. | Base: 1,000 online respondents per country aged 15+ (500 for Luxembourg), 2017
Perceived levels of privacy in cash and non-cash payments Please indicate the level of privacy you believe you have when paying without cash / with cash | Percentage who say “high” or “very high” | 2017
20 Source: Google Trends (www.google.com/trends)/FFonline, Worldwide, 2016
The uptake of the Cashless Society through the lens of Google searches
Google Trends is a valuable resource for
FFonline, allowing us to monitor our social and
consumer trends through another lens: the
popularity of Google searches over a period of time. (Please refer to the
notes page for further information).
0
20
40
60
80
100
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Month
Searches for "PayPal"
Searches for "Cash"
Searches for "debit card"
Searches for "Bitcoin"
100 = Peak searches
Consumer interest in cashless technology has been growing consistently, as Google searches for Paypal and Bitcoin below demonstrate. On the contrary, interest in traditional types of payment such as debit cards or cash has remained relatively stable excluding interest in cash in countries such as India, which experienced a cash crisis in 2016.
21 21 Source: FF Online Research | Base: 1000-5000 online respondents per country aged 16-64 (Indonesia & S. Africa 16-54), 2016 February
Interest in using an app or swiping your mobile phone to pay for something “Which of these things have you done already and which are you interested in doing in the
future?” | Used an app or swiped your mobile phone at the checkout to pay for something | 2016
Right-click on chart and select Edit Data for demographic data
0%
20%
40%
60%
80%
100%
So
uth
Ko
rea
US
A
Ca
na
da
Au
str
alia
Ja
pa
n
Pola
nd
Italy
Spain
Irela
nd
Sw
ed
en
Fin
lan
d
Cze
ch
Re
p
De
nm
ark
GB
Fra
nce
Ne
the
rla
nd
s
Ge
rma
ny
Ch
ina
Ind
on
esia
Tu
rke
y
Th
aila
nd
Ind
ia
Bra
zil
Me
xic
o
Ru
ssia
Ma
laysia
So
uth
Afr
ica
I have done this
I have not done this, but am interested in doing it in the future
22 22
0%
20%
40%
60%
80%
100%
US
A
So
uth
Ko
rea
Ca
na
da
Ja
pa
n
Au
str
alia
Pola
nd
Sw
eden
Denm
ark
Fin
lan
d
Ita
ly
Cze
ch
Re
p
GB
Ire
lan
d
Spain
Fra
nce
Ge
rma
ny
Ne
the
rla
nd
s
Ch
ina
Ind
ia
Tu
rke
y
Th
aila
nd
Ru
ssia
So
uth
Afr
ica
Bra
zil
Ind
on
esia
Ma
laysia
Me
xic
o
2015 2016
Source: FF Online Research | Base: 1000-5000 online respondents per country aged 16-64 (Indonesia & S. Africa 16-54), 2016 February
Mobile payments usage
“Which of these things have you done already?” | Used an app or swiped your mobile phone at
the checkout to pay for something | 2016
Right-click on chart and select Edit Data for demographic data
23
0%
20%
40%
60%
80%
100%
Euro
pean
Ave
rag
e
Turk
ey
Pola
nd
Ita
ly
Spain
Ro
ma
nia
Cze
ch
Re
p
Belg
ium
Fra
nce
Ne
the
rla
nd
s
UK
Lu
xe
mb
ou
rg
Au
str
ia
Ge
rma
ny
US
A
Au
str
alia
2014 2015 2016
Source: Foresight Factory / ING Bank N.V. | Base: 1,000 online respondents per country aged 15+ (500 for Luxembourg), 2016
“I use physical cash much less than 12 months ago” % who agree or strongly agree | European average of available countries, and by country, including USA and Australia | 2016
24
65% of global consumers have used at least one of the two following payment methods : contactless payments and mobile payments. 11% have used both.
Those consumers who have either used both methods or who have used one and are interested in using the other, are what we call Keen On Cashless.
Source: nVision Research | Base: 1000-5000 online respondents per country aged 16-64 (Indonesia & S. Africa 16-54), 2015 February
Segmentation Analysis : Keen On Cashless
Highest % of
Keen on Cashless
Lowest % of
Keen on Cashless
40% are mobile bankers
36% feel like they don’t manage their finance well
32% feel stressed all the time
25
0%
20%
40%
60%
80%
100%
Au
str
alia
Ca
na
da
US
A
So
uth
Ko
rea
Ja
pa
n
Cze
ch
Re
p
Pola
nd
Irela
nd
GB
Fra
nce
Spain
Ita
ly
Fin
lan
d
Ge
rma
ny
Ne
the
rla
nd
s
De
nm
ark
Sw
ed
en
Ru
ssia
Ind
ia
Ch
ina
Me
xic
o
Tu
rke
y
So
uth
Afr
ica
Bra
zil
Ma
laysia
Ind
on
esia
Th
aila
nd
2015 2016
Source: FF Online Research | Base: 1000-5000 online respondents per country aged 16-64 (Indonesia & S. Africa 16-54), 2016 February
Contactless card usage
Eastern Europe is ahead of the curve as over 7 in 10 have already used contactless payment in the Czech Republic. The biggest increase in use hails from Finland and the Netherlands where contactless card use has nearly doubled from 2015 to 2016 as more banks release NFC cards.
“Which of these things have you done already?” | Used a contactless payment debit/credit card | 2016
Right-click on chart and select Edit Data for demographic data
26
0%
20%
40%
60%
80%
100%
Euro
pean
Ave
rag
e
Tu
rke
y
Ita
ly
Pola
nd
Spain
Au
str
ia
UK
Ge
rma
ny
Ro
ma
nia
Fra
nce
Ne
the
rla
nd
s
Lu
xe
mb
ou
rg
Cze
ch
Re
p
Belg
ium
US
A
Au
str
alia
Have used bitcoin Have not used bitcoin Don't know what bitcoin is No opinion
Source: ING Bank N.V./FFonline | Base: 1,000 online respondents per country aged 15+ (500 for Luxembourg), 2015
Those who have used Bitcoin in the past year
A majority of consumers have not used Bitcoin and nearly 1 in 2 do not know what Bitcoin is. Lack of knowledge is a barrier to uptake and consumers are less likely to use cryptocurrencies if they have access to cashless services from financial institutions.
“In the past twelve months I ...” | % who answered “ I have used Bitcoin”, “I have not used Bitcoin”, “I don’t know what Bitcoin is” and “no opinion” | European average of available countries and by country, including USA and Australia | 2015
27
GB USA France Spain Sweden China Japan
I don't trust my money will be secure 20% 19% 18% 16% 16% 11% 28%
I don't understand the benefits of using this
payment method 18% 17% 15% 13% 23% 12% 21%
I'm happiest making payments with familiar
methods 24% 18% 17% 14% 24% 9% 12%
I don't trust my personal data will be stored
securely or used appropriately 14% 16% 11% 9% 13% 10% 17%
I don't plan to own the technology needed
to make this type of payment 11% 10% 7% 3% 11% 6% 7%
The businesses I regularly buy from won't
accept this payment method 6% 8% 5% 8% 5% 8% 6%
It's too complicated for a person like me 6% 6% 5% 4% 5% 6% 10%
None of these 2% 3% 5% 2% 3% 1% 5%
Other 1% 1% 1% 1% 2% 0% 0%
Source: FFonline Research | Base: 1000-2000 online respondents per country aged 16+ (China 16-64), 2015 September
Reasons for not being interested in Bitcoin
Fears over security and unfamiliarity are the biggest barriers to cryptocurrency uptake - 28% of Japanese consumers do not trust that their money is secure stored as a cryptocurrency.
“Why are you not interested in using - Bitcoin or any other cryptocurrency (eg Litecoin, Dogecoin)” | 2015
28
0%
20%
40%
60%
80%
100%
Ch
ina
Spain
US
A
Sw
ed
en
GB
Ja
pa
n
Fra
nce
Don't know - I have never heard of this type of payment option
I have not used this AND am NOT interested in using in the future
I have not used this BUT am interested in using in the future
I have used this
Source: FFonline Research | Base: 1000-2000 online respondents per country aged 16+ (China 16-64), 2015 September
Paying via social apps: usage and interest
The popularity of WeChat and the WeChat digital wallet accounts for the high use and interest in paying via social apps in China. To date, no other app appears to afford the same level of payment flexibility in another market.
“Which of the following payment methods have you ever used and which would you be interested in using in the future?” | A social network or communication app to pay for a product or service | 2015
Right-click on chart and select Edit Data for demographic data
29 29 Source: FF Online Research | Base: 1000-5000 online respondents per country aged 16-64 (Indonesia & S. Africa 16-54), 2016 February
Interest in using a contactless card
“Which of these things have you done already and which are you interested in doing in the
future?” | Used a contactless payment debit/credit card | 2016
Right-click on chart and select Edit Data for demographic data
0%
20%
40%
60%
80%
100%
So
uth
Ko
rea
Ca
na
da
Au
str
alia
US
A
Ja
pa
n
Cze
ch
Re
p
Irela
nd
Pola
nd
Spain
Fin
lan
d
Ita
ly
GB
Fra
nce
De
nm
ark
Ge
rma
ny
Ne
the
rla
nd
s
Sw
ed
en
Ch
ina
Tu
rke
y
Ru
ssia
Ind
ia
Me
xic
o
Ind
on
esia
Th
aila
nd
Bra
zil
Ma
laysia
So
uth
Afr
ica
I have done this
I have not done this, but am interested in doing it in the future
30 30
0%
20%
40%
60%
80%
100%
Au
str
alia
Ca
na
da
US
A
So
uth
Ko
rea
Ja
pa
n
Cze
ch
Re
p
Pola
nd
Irela
nd
GB
Fra
nce
Spain
Ita
ly
Fin
lan
d
Ge
rma
ny
Ne
the
rla
nd
s
De
nm
ark
Sw
ed
en
Ru
ssia
Ind
ia
Ch
ina
Me
xic
o
Tu
rke
y
So
uth
Afr
ica
Bra
zil
Ma
laysia
Ind
on
esia
Th
aila
nd
2015 2016
Source: FF Online Research | Base: 1000-5000 online respondents per country aged 16-64 (Indonesia & S. Africa 16-54), 2016 February
Contactless card usage
“Which of these things have you done already?” | Used a contactless payment debit/credit card |
2016
Right-click on chart and select Edit Data for demographic data
C O N N E C T E D T R E N D S R E L AT E D S E C T O R S
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Chat and pay with M-Pesa
Safaricom launched Bonga in closed beta in April 2018. Bonga is a chat messaging service which incorporates mobile money transfer service M-Pesa.
Users will be able to send and receive money, or check their balance without leaving the messaging platform. M-Pesa users will also be able pay businesses and fundraise within social groups on the platform.
By combining payments and social interaction, Safaricom helps consumers connect quickly in a more intuitive way. The move follows platforms in Asia such as WeChat, which integrates messaging with payments, services and social media.
Bonga integrates social messaging with mobile money transfers | Kenya
Connected Communities | Cashless Society
Sector Trend: Social Payments
Financial Services | Telecommunications and Mobile
Link: https://www.bonga.ke/
C O N N E C T E D T R E N D S R E L AT E D S E C T O R S
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Digital “piggywallet” for children
In April 2018, Filippo Yacob, CEO of Primo Toys announced Pigzbe , a digital wallet that aims to educate children about finance using cyptocurrency.
Pigzbe uses Wollo, “a network native token” which carries less volatility risk than other cryptocurrencies making it the ideal digital currency for children. Wollo allows parents to create a micro finance system where family members can buy and trade Wollo currency. The wallet comes with a payment card that enables users to spend their Wollo in the real world, as well as a mobile app that will have interactive games that teaches users about finance and cryptocurrency.
Pigzbe aims to solve financial illiteracy by encouraging families to teach children about new forms of currency in an accessible way.
Blockchain piggy bank teaches children about finance | USA
Cashless Society
Financial Services | Work and Education
Link: https://www.pigzbe.com//
C O N N E C T E D T R E N D S R E L AT E D S E C T O R S
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Invisible payments
In March 2018 BBVA announced the development of “invisible” payments technology.
The technology is being tested at the café and restaurants at Cuidad BBVA, with employees trialling an app to automate their payments using biometric technologies. Currently users can order a coffee or book a table through the app, and their order is automatically registered and paid for through their account. In the future, BBVA aims to use facial recognition technology to recognise users and their orders, allowing customers to pick up their food and automatically be charged in a frictionless experience.
BBVA claims the new technology saves users between seven and ten minutes compared to manually paying, and caters to the consumer desire to move seamlessly through life.
Biometric technology removes friction from purchases | Spain
Cashless Society | Convenience Culture
Financial Services
Link: https://www.bbva.com/en/bbva-launches-its-invisible-payments-strategy/
C O N N E C T E D T R E N D S R E L AT E D S E C T O R S
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AirAsia launches e-wallet
In March 2018 AirAsia officially unveiled e-wallet BigPay at Money 2020 in Singapore, following a soft launch in Malaysia in January.
Users can add up to ten credit or debit cards to the wallet to top up their balance, and the account is protected by fingerprint ID. As well as paying for items on AirAsia flights, users can pay friends and family by scanning QR codes or syncing their contacts with the app.
AirAsia aims to make their in-flight purchases cashless, reducing the cost of currency exchange rates as consumers fly between Southeast Asian countries.
BigPay will allow planes to go cashless | Asia
Cashless Society
Financial Services | Travel and Hospitality
Link: https://www.bigpayme.com/
C O N N E C T E D T R E N D S R E L AT E D S E C T O R S
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CoinOut
Appearing on Shark Tank in February 2018, CoinOut is an app that allows customers to receive change from a cash purchase in digital form.
Customers paying with cash can decide to send their change to the CoinOut digital wallet by entering their phone number into the shop’s register, or scanning the QR code on a receipt. The app also offers cash back from selected retailers, with the amount changing everyday to keep customers engaged.
The app aims to bring heightened convenience to cash purchases, removing the pain point associated with receiving change. Retailers can also interact digitally with customers, for example offering greater cash back rewards on certain days.
App allows customers to receive change from cash in a digital wallet | USA
Cashless Society | Convenience Culture
Financial Services | Digital
Link: https://www.coinout.com/
C O N N E C T E D T R E N D S R E L AT E D S E C T O R S
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Pay for public transport by viewing ads
In November 2016, commuters in Düsseldorf were given the opportunity to pay for a €2.60 public transport ticket by watching four 20 second advertisements on their device.
The number of free journeys each day was finite and first come, first served. The app, WelectGo, proved so popular that the daily allocation of tickets would run out in a matter of hours.
WelectGo gives commuters free travel for viewing advertisements | Germany
Consumer Capital | Cashless Society
Automotive and Mobility
Link: https://www.welect.de/
C O N N E C T E D T R E N D S R E L AT E D S E C T O R S
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Zara concept store
On 26th January 2018, retail giant Zara opened a concept store at the Stratford Westfield shopping centre in East London.
As well as a selection of womenswear and menswear, the space has a dedicated section for collecting orders placed online, which can be picked up the same day if ordered before 2pm. Changing rooms feature smart mirrors that offer outfit suggestions and coordination options when a garment label is scanned in. Customers can then use self-service checkouts, card payments via Bluetooth and the Zara app to pay.
Zara’s new store is a move towards slicker shopping experiences where tech enhances the customer’s visit and helps to eliminate the more tedious elements like queuing at tills.
Click & Collect store offers ultimate convenience | UK
Cult of Immediacy | Cashless Society
Retail
Link: https://www.zara.com/uk/en/z-stores-l1404.html?v1=11108
C O N N E C T E D T R E N D S R E L AT E D S E C T O R S
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Finance app adds charity donation button
In January 2018, AI-driven finance chatbot Cleo introduced a new feature for giving to charity. This feature allows users to donate to affiliated charities with one click while in the app.
The bot assists users in saving a flexible amount each month. They are now invited to donate a percentage of this saving each month, with a single click. The two independent charities currently supported through the app are Toynbee Hall and The Money Charity.
This move aims to capitalise on younger consumers desire for easy, flexible donation methods and a preference for cashless payments.
Cleo allows one click donation | UK
Cashless Society
Sector Trend: Hassle-Free Donation
Public Sector and Charities | Financial Services
Link: https://www.meetcleo.com/
C O N N E C T E D T R E N D S R E L AT E D S E C T O R S
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Payment wearables for Winter Olympic Games
In November 2017, Visa (the exclusive payment technology partner at the Winter Olympic and Paralympic Games in PyeongChang) announced that it would be providing NFC-enabled payment commemorative stickers, Olympic pins, and gloves for contactless payment.
The devices will be available for both athletes and fans, and will be loaded with prepaid amounts of currency for seamless purchasing.
The payment options will provide fans with keepsakes and eliminate the need for cash from the games. They also appeal to consumer demand for convenient, hassle-free transactions that will not interrupt their experience of the event.
Visa introduces gloves, stickers and pins | USA/Korea
Cashless Society | Cult of Immediacy
Financial Services | Digital
Link: https://www.visaeurope.com/newsroom/news/visa-introduces-new-payment-wearables-for-2018-olympic-winter-games
C O N N E C T E D T R E N D S R E L AT E D S E C T O R S
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MasterCard Assemble
In December 2017, MasterCard launched Assemble, a platform that allows users to check balances of various cards, and set savings goals. Customers can also make real-time payments within the US with a debit card via the peer-to-peer service powered by MasterCard Send.
The first product available will be aimed at Millennials, and offers additional features such as a digital prepaid account, a mobile app and a payment card, The product aims to give consumers a simple, smart and safe way to manage their money.
Digital platform allows users to view all their balances at once | USA
Professionalised Budgeting | Cashless Society
Professionalized Budgeting
Financial Services
Link: https://newsroom.mastercard.com/press-releases/new-mastercard-digital-platform-offers-holistic-management-for-prepaid-accounts/?utm_source=Triggermail&utm_medium=email&utm_campaign=Post%20Blast%20%28bii-
payments%29:%20Atos%20bids%20on%20Gemalto%20%E2%80%94%20Stripe%20launches%20beta%20test%20in%20India%20%E2%80%94%20Mastercard%20targets%20millennials&utm_term=BII%20List%20Payments%20ALL
C O N N E C T E D T R E N D S R E L AT E D S E C T O R S
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Target launches digital wallet
In December 2017, Target launched its Wallet in the Target app, giving customers an easier way to pay and save at Target stores.
Wallet aims to reduce the time taken at in-store check-outs, and combines digital savings - including Cartwheel offers and Weekly Ad coupons - with its 5% REDcard discount. Target also hopes to be able to GiftCards within the Wallet soon.
Wallet makes check-out quicker and includes rewards | USA
Cashless Society
Retail | Financial Services
Link: https://corporate.target.com/article/2017/12/wallet-in-target-app
C O N N E C T E D T R E N D S R E L AT E D S E C T O R S
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Gifting through PayPal
PayPal has begun offering digital gift cards after finding that over half (52%) of American consumers “wish they could ask for money, rather than traditional presents”.
For Christmas 2017, PayPal has partnered with Leandra Medine of fashion blog Man Repeller to design holiday-themed digital gift cards and greetings.
Online payment platform offers digital gift cards | Global
Cashless Society
Financial Services | Retail
Link: https://www.paypal.com/stories/us/seize-the-season-with-paypal-man-repellers-leandra-medine
43
Online shopping driven by simplicity and price
Source: Global Trendspotter Network, 2016
Online shopping is popular due to its convenience and cheaper prices. Shopping directly through social media platforms like Instagram is an established consumer behaviour.
Most Indonesians are buying things online as they are cheaper and they do not have the time to visit the brick-and-mortar stores. Most of my friends are buying things online, even my
boyfriend bought sport equipments online instead of buying in-store... Physical stores usually provide discounts to encourage buyers to buy
in-store. The stores are usually full of people only when the sale season is on.... [I also use] Instagram. It is not an e-commerce site
but a lot of accounts selling items with lower prices.
Sabrina INDONESIA
Tokopedia is an Indonesian online
marketplace that allows
entrepreneurs and small
businesses to open online stores
Huntstreet is an online
marketplace that focuses on pre-
owned designer clothing.
Consumers can pay for goods
through instalments.
44 Source: Global Trendspotter Network, 2016
Smart wristbands widely used in Indonesian theme parks
So far the most innovative and common use of the smart wristband is at
amusement parks.
Indonesian water park Waterbom gives visitors a smart wristband called SPLASH BAND that stores their credit card information, allowing them to make
cashless payments throughout their visit.
The most widespread usage of wearables in Indonesia is in the leisure and tourism sector.
Lido Lakes is a theme park and resort in development just outside of Jakarta. The park will utilise wristbands and smartphones to create an
immersive, seamless experience for guests.
Sabrina INDONESIA
45 Source: Global Trendspotter Network, 2016
Singapore : cautiously cashless
People here are using less cash than before mainly because younger generations are more receptive to technology and
are steadily replacing the older generation as the main spenders.
The most important payment methods are still the conventional ones: debit cards, credit cards and NETS cards.
Newer innovations are still considered ‘newfangled’ and most consumers are
adopting a ‘wait and see’ attitude. Some people, more commonly older ones, are
concerned about the safety of such systems. This isn’t based on any sophisticated
knowledge of the underlying technologies and their weaknesses, but rather a general
distrust of anything new.
While keen to ditch cash in favour of card payments, Singaporean consumers are distrustful of other cashless payment innovations until they are mainstream.
Daniel SINGAPORE
NETS was founded to establish
Singapore’s national chip and pin scheme.
46 Source: Global Trendspotter Network, 2016
Digital wallets enter the mainstream
The innovation that has been receiving the most mainstream attention recently is mobile wallet
technology.
Dash is the m-wallet from Singtel, Singapore’s largest Telco. The wallet allows for contactless payments, payments abroad
and swipe payments to friends.
DBS Bank introduced the mobile banking solution PayLah! which allows users to send and receive
money instantly, pay online and pay bills.
Local banks in Singapore were the first to roll out viable wallet apps thanks to their network of relationships with consumer businesses.
Daniel SINGAPORE
47 Source: Global Trendspotter Network, 2016
Cash sometimes still king in Singapore?
Hawkers and peddlers accept only cash, along with many smaller shops which loathe the hassle and cost of
incorporating cashless payment systems, and even some large companies like KFC limit their cashless options, I presume
in order to manage costs. So cash is still indispensable in some situations. On taxis, credit/debit card payment levies a whopping 10% admin fee, so passengers rarely pay that way.
The major telcos accept cash payment at their brick-and-
mortar outlets for broadband, pay-TV and mobile services. Some
online retailers, the largest ones such as Qoo10 also accept
limited cash on delivery options.
In Singapore, there are many circumstances where cash remains the only or preferred payment option. The ability to use cash to pay for Uber, e-commerce, TV, broadband and mobile facilities suggests that many Singaporeans are still more comfortable with cash.
Daniel SINGAPORE
Uber Singapore started accepting cash
payments on their previously card-only booking
platform. This is reportedly to capture both
students and older demographics.
48
Strong preference for cashless in Philippines
Source: Global Trendspotter Network, 2016
Though there are still occasions where cash payment is appropriate, consumers in the Philippines generally are much more strongly drawn to online, mobile and contactless payments.
Camille PHILIPPINES
Filipinos would rather pay via Dragonpay and
online banking only because it is much easier
than to line in a queue at the bank. Dragonpay is
an online payment facility that we use to pay for
certain bills. We access online banking also via our
mobile phones. There are still occasions where
people pay in cash or using card payments. I
use a contactless card from my provider PayMaya.
Left: contactless
card from PayMaya
Right: Dragonpay
49
Cashless payment in Thailand
Source: Global Trendspotter Network, 2016
Cashless payment options are thriving in Thailand. While all banks have their own reliable online banking systems in place and social media payment is on the rise too, government is launching PromptPay, which will eliminate the risk of bringing cash to public places.
Nok THAILAND
The Thai government is now launching a new
electronic transaction service called Prompt
Pay in accordance with the National E-
Payment Master Plan. Prompt Pay users can
transfer money through the ID or mobile phone
numbers of recipients, minimising the risk of
bringing cash to public places. […] Now every
bank has its own convenient online service that
allows customers to pay for many types of
products and services easily. To facilitate the
customers’ payment process, more and more
business allow their customers to pay
through various social media.
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