Money Buzz! Europa

Tag: card payment

  • 5.4 million Italians signed up to a scheme which offers a 10% refund for card payments

    5.4 million Italians signed up to a scheme which offers a 10% refund for card payments

    More than 5.4 million Italians have signed up to a government scheme which offers a 10% refund for card payments in stores by the end of the year.

    This action is an attempt by authorities to reduce tax evasion and help retailers affected by the coronavirus pandemic (COVID-19), reports Reuters.

    The ”cashback” initiative will officially start next month, but the pilot program began on December 8 and lasts until the end of the year.

    The scheme, which allows savings of up to 150 euros, has already attracted 10% of the adult population.

    ”Cashback” program will be doubled from January 1, 2021 by an ”invoice-based lottery” and a prize of 1,500 euros for 100,000 people who have the highest number of card purchases in a period of six months.

    Prime Minister Giuseppe Conte’s government estimates that the use of card payments will reduce tax evasion, estimated by the Ministry of Finance at almost 109 billion euros a year.

    Analysts believe that Italy has the largest tax evasion in the European Union.

  • Euro zone: Four out of ten card transactions were made using contactless technology

    Euro zone: Four out of ten card transactions were made using contactless technology

    Euro area consumers are gradually shifting towards cards for in-person retail payments, although cash remained the most used instrument at the end of 2019, data published by the European Central Bank (ECB) show.

    Last year euro area adult consumers used cash for 73% of their point-of-sale and person-to-person retail transactions (48% in value terms).

    In a previous ECB study conducted in 2016, the figure was 79% of these transactions (54% in value terms).

    The use of cards for in-person retail payments increased by 5 percentage points over the same three years, from 19% to 24% (41% in value terms).

    Almost four out of ten card transactions were made using contactless technology in 2019.

    For their online shopping, euro area adult consumers paid mainly by card (49% of transactions) and one out of four online transactions was made using e-payment solutions.

    Four out of ten bill payments were made using direct debit and two out of ten by credit transfer.

    How Covid-19 pandemic changed payment behavior

    Four out of ten respondents replied that they had used cash less often since the start of the pandemic. While most of those who fell into this category expected to continue to do so after the pandemic, the long-term impact on payment behaviour is still uncertain.

  • European consumers prefer cashless payments

    European consumers prefer cashless payments

    Cash is losing ground in Europe, given that 36% of respondents to the Payments and Open Banking survey, conducted by PwC, say they use cash in 2020, 7 percentage points less than two years ago.

    However, consumers’ reorientation towards cashless payments is not reflected in an increase in their willingness to share personal data with third parties – a condition for the development of “open banking”.

    Thus, only 20% of respondents are willing to provide financial data.

    Banks remain at the top of trust

    According to the survey, European respondents say they trust more traditional banks and card providers for the exchange of personal information (17%).

    Compared to 2018, both banks and card providers lost 4 percentage points of confidence.

    Among other players, payment service providers are trusted by 9% of respondents and retailers by 8%, internet giants by 7%, while banks that operate exclusively online (neobanks) and FinTech would receive data only from to 3% of European consumers.

    Benefits for data exchange

    The most desired benefit for consumers to exchange personal data for services other than banking is the discounts on shopping, while the popularity of other benefits for using “free banking” products or for automatic filing of tax returns are more reduced.

    Cards use is increasing

    Instead of cash, consumers use cards, e-wallets or applications. The use of debit cards is increasing, in 2020, to 31% compared to 27% in 2018, and that of applications and e-wallets to 14% from 11%.

    The reasons why Europeans use cash over other payment methods are as follows: 34% say they use it if no other payment is accepted, 26% for convenience, 13% because they have security concerns, and 20% have more control of expenses / budget.

    The preference for cash varies greatly and has decreased at a different rate, for example in Switzerland it has fallen in the last two years from 60% to 45% and in Italy from 52% to 38%.

    COVID-19 a catalyst for non-cash payments

    The COVID-19 crisis has influenced the behavior of European consumers when shopping in stores. Thus, 44% use physical cards more often and 9% smartphones (for example Apple Pay).

    Respondents believe that these payment behaviors are long-lasting and only one in five expects to return to previous habits.