Mastercard finds surge in digital payments and e-commerce
Driven by COVID-19, consumers worldwide are opting for touch-free, secure and seamless digital methods of paying, according to the latest Mastercard SpendignPulse report.
The global payments giant found that consumers are increasingly moving away from cash towards digital, contact-freel and mobile payment methods.
The study also found rapid growth in global e-commerce, as consumers are moved towards online shopping as a result of COVID-19 restrictions.
These two key trends are defining the evolution of consumer payment behaviour, says Mastercard.
In-store, the research recognised a “massive move away from cash”. Globally, Mastercard explains, almost seven in 10 consumers say that the shift to digital payments will likely be permanent.
Further, close to half said that they plan to use cash less, even when the COVID-19 pandemic subsides.
In Europe, Mastercard found that 64% said that tap and pay is now their preferred method of in-store payment - the European region already had the largest adoption of contactless payments of any.
Globally, it was revealed that nearly half (46%) of all respondents in Asia Pacific are using cash less often, while two-thirds of Latin American consumers said they are using cash less or not at all.
Alongside the shift towards digital payments, e-commerce has reached new heights.
For example, Mastercard SpendingPulse1, which measures retail sales across all payment types and products or services, showed that US e-commerce spending grew by 93% year-over-year during May.
In addition, across both April and May, e-commerce as a share of total retail sales reached 33% in the UK, a level referred to by Mastecard as ‘an unprecedented high’.
According to Jorn Lambert, Executive Vice President, Digital Solutions: “While no one could have predicted the state of the world we’re in today, it has reinforced the necessity for us to continue evolving the consumer payment experience to meet the consumer wherever they are.
“We’ve been focused on building our Digital-First capabilities for years, which have enabled this accelerated shift to digital payments - it’s unlikely consumers will revert to old payment habits.”
Tink partners with Novalnet AG for open banking payments
The Munich-based fintech Novalnet AG, which was founded in 2007 and is one of Europe’s leadingfintech companies, has announced a new partnership with Tink, the Swedish open banking platform currently connected to more than 3,400 European banks.
Novalnet AG delivers payment solutions and fully automated services, from checkout to debt collection. Its solutions are also available worldwide.
According to reports, the fintech company plans to launch a real-time payments feature for merchants across Europe, to expand its current services and enhance the transaction experience it operates through its platform.
The new feature, says Novalnet, will revolutionise payments for ecommerce with transactions being credited to merchant’s accounts almost instantly.
Novalnet partnership with Tink
By partnering with Tink for payment initiation services (PIS) technology, Novalnet will take previous region-specific payment methods and offer a new unified digital payments service to its merchants across Europe.
The fintech’s real-time merchant payments feature, which will be launched initially in Germany and the United Kingdom, will then be integrated across other European markets during 2021.
Speaking about the new collaboration, Emmanuel Kirse, COO of Novalnet, explained, "We expect great things from our strategic partnership with Tink, which is a significant development for both parties.
“With Tink, Novalnet can offer a new set of open banking-related solutions in Europe. The new opportunities offered by this partnership will help both Tink and Novalnet grow together, along with our merchants."
Cyrosch Kalateh, Regional Director for the DACH region at Tink said, “Our partnership with Novalnet is a big step for Tink in the German market, and we are excited to work together to bring new, innovative payments services to merchants across Europe.”
He added, “At the end of 2020 Tink committed to expanding its payment initiation services from five to 10 markets, fuelled by an €85mn investment round. We are proud to add Germany to this list by announcing we have now fully launched Tink’s PIS services in this market.”
Image credit: Novalnet AG