Significant increase in electronic payments among over-75s
The increase in electronic payments last year was not only reflected in point-of- sale(POS) payments, but also in person-to-person (P2P) payments, such as to family and friends. It is striking that people of different ages often opt for different payment methods. Those in the 25-39 year age bracket pay for their POS purchases electronically the most frequently (85%), while those in the 19-24 year age bracket are most likely to opt for electronic means for P2P payments (76%), for example by using Tikkie/Betaalverzoek or a bank transfer using a mobile banking app. The over-75s are the least likely to use electronic payments, but they did so more often in 2020 than a year earlier. For example, they used debit card payments for two out of three POS purchases in 2020, while they only did so 43% of the time in 2019. For P2P payments – such as allowance to grandchildren – they mainly use cash, but here too electronic payment methods are used increasingly often. Over-75s use online or mobile banking for 34% of P2P payments, while in 2019 they did so for 13% of such payments.
The COVID-19 pandemic contributed to the increase in electronic payments in 2020
In addition to the digitisation that has been going on for some time, the COVID-19 pandemic also played a role in the increase in contactless payments. Encouraged to do so by retailers, consumers made contactless payments more often to avoid infection with the virus when touching the payment terminal or when handing over cash. The Dutch National Institute for Public Health and the Environment (RIVM) has stated, however, that the probability of infection by touching products or surfaces, including cash, is very small. Banks have temporarily increased the limits for contactless payments, so that consumers do not need to enter their PIN codes quite as often.
To read the full findings of the joint DNB and Dutch Payments Association study into the use of cash and electronic payments in the Netherlands for POS and P2P payments in 2020, click on the link to download the “Point of sale payments in 2020” fact sheet.