This statistic is from The 2020 McKinsey Global Payments Report.
The report explores the impact of the COVID-19 pandemic on the payments industry, focusing on its acceleration of existing trends in consumer and business behaviour, and the new developments it introduced. It notes a degree of reversion to past behaviour is likely for some shifts.
Outlook by Region
Overall, the report forecasts that Asia-Pacific (excluding China) could suffer large declines in payments as it is strongly affected by Net Interest Margin (NIM) contraction, faces increasing government pressure on mass-market transaction fees, and has high exposure to long-term affected industries, such as travel and tourism.
Europe might see a swifter rebound, since NIMs were already compressed prior to the pandemic and its growth volume is fuelled by the acceleration of digital migration in Southern and Eastern Europe, and by government stimulus measures.
In Latin America, cash usage will likely remain resilient.
Among the banked population of Latin America, mobile wallets have gained users since late 2019, with the pandemic accelerating the trend. However, cash is likely to continue to dominate.
Norther America's revenue benefit from a growing shift to digital channels has been offset by credit card economics, with outstanding balances down around 29 percent from 2019 levels. Singe credit cards are the largest source of the region's payments revenue (about 44 percent) the decline in outstanding balances alone will outweigh the benefits of increased use of digital channels.
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