The latest publication from Germany-based online research firm yStats.com, “North America POS Payment Methods 2020 & COVID-19’S Impact,” recounts the trends in point of sale payment practices in recent months, with emphasis on the effect that the worldwide health crisis has introduced. Yücel Yelken, yStats.com founder and CEO comments: “the surge in digital payment methods will likely have lasting consequences in the North American region.”
North America is further digitalizing payment methods for in-store shopping during the COVID-19 pandemic
The payment preference of consumers at the point of sale is being transformed by the COVID-19 pandemic. The shift to digital payments from cash has accelerated even further due to the nature of the health crisis. According to the yStats.com report, a double-digit percentage of consumers preferred using touchless self-checkout payment in grocery stores. Furthermore, the reduction in the use of cash in North America is largely contributed to the concern that the use of cash may spread the virus. Among the alternatives to cash, various payment methods are used by consumers in North America including cards, and mobile wallets.
The COVID-19 crisis further strengthened the trend of contactless mobile payments in North America
Besides the traditional cash payment methods, one of the alternative payment methods that North American countries increased during the pandemic was contactless mobile payments. The acceptance of contactless payments by merchants as well as consumers was already growing before COVID-19 hit the world and has been accelerated by the outbreak. One of the examples is also included in the yStats.com report that indicates that half of small businesses in the USA with a brick-and-mortar store surveyed in 2020 accepted Apple Pay. This trend further increased as a notable percentage of consumers in Canada used contactless card or mobile payments more often when buying in-store, during the pandemic.
North American consumers use less cash since the COVID-19 outbreak
Though the move away from cash is a global phenomenon, there are some country and regional variations. The US had been adopting cashless payments before the pandemic, and this trend advanced during the COVID-19 health crisis. Furthermore, according to the yStats.com report, a significant share of consumers decreased the use of cash payments during the on-going health crisis. The publication also includes data on various payment trends in North America before and during the COVID-19 crisis.