Persistently more digital payments after COVID-19

The digitization of the Dutch payment system accelerated in 2021, mainly as a result measures and restrictions against COVID-19. Digital payments and banking are easier and faster for many people, including some with mental and physical disabilities. Others find this more difficult and need help. Keeping daily payments available and accessible for everyone is a key issue, says the Dutch Payments Association in its annual report for 2021.

At points of sale, we increasingly pay contactless and often with a smartphone. Eight out of ten payments at shop counters are now electronic, with a debit card or smartphone. Almost nine out of ten card payments are contactless, without inserting the card into the payment terminal. A quarter of all debit card payments are now made without a card, predominantly with a smartphone.

Since the start of the COVID-19 pandemic, the number of cash payments at points of sale has decreased to one in five payments. This is not expected to rebound to the old pre-pandemic level, even though nearly all restrictions have been lifted.

We order and pay far more online: the share of online spending in web stores on total retail spending, has risen from 27% in 2020 to 31% in 2021. Credit transfers are almost all done through internet banking or mobile banking, and we increasingly use mobile requests-to-pay to settle debts between friends and acquaintances. On average, consumers make almost 3 million credit transfers per day, over half via mobile banking.

Accessible payments

In light of these developments, the Payments Association and its members paid close attention to the reachability and accessibility of payment services in 2021. Gijs Boudewijn, director a.i. of the Payments Association: “Last reporting year, our members expanded the information and assistance around digital payment services.”

To keep cash available, accessible and affordable, several initiatives were launched in 2021. One of these was that the Payments Association and larger banks recently signed the Dutch central bank’s Cash Covenant. That covenant was agreed between 23 stakeholder organizations, including consumer and retailer organizations.

Gijs Boudewijn: “Improving the availability and accessibility of the increasingly digital payment system, together with our members and stakeholders, remains a priority for the activities of the Dutch Payments Association. That is why our annual conference for members and stakeholders in May is entitled ‘All Digital?‘, because this comes with both opportunities and challenges to keep everyone on board.”