Cashless Society - Foresight Factory · Cashless systems vary greatly based on a country’s...

Cashless Society How technological changes are transforming payment methods

2

The Briefing

Contactless cards, digital wallets, payment apps and biometric authentication continue to transform

the future of payment methods.

The belief that cash is king has been threatened by technological innovations that have made cashless

options more secure, convenient, traceable and ultimately - more attractive to consumers. Contactless

cards, mobile wallets, peer-to-peer app payments have - in many places - eliminated the need for cash

altogether, and have minimised the pain, and delay, caused by waiting in line, counting coins or not having

correct change.

Indeed we are now starting to see the rise of invisible transactions where physical checkouts become

obsolete, as payment can be taken automatically as the consumer leaves the store. In this world, devices

and biometric identifiers make consumers instantly recognisable to retailers and their digital identities, as

tracked in The Digital Passport, will follow consumers in the physical world, making transactions completely

seamless.

The second caveat of cash is its lack of traceability. For the privacy-conscious consumer the anonymity of

cash will remain its central perk - but the average consumer is adopting behaviours of digital tracking,

analytics and control - behaviour that is bleeding into spending and is now simply expected from financial

transactions. The tools which analyse spending and Professionalise Budgeting, can be integrated and

automatic in a Cashless Society, allowing all consumers to exercise control over their in- and outgoings.

When cash is less prominent, the value attached to currency is physiologically altered and numerous

reports point to a consumer likelihood to spend more when paying with plastic. If there is a disconnect

between money and its value, consumers are primed to adopt alternatives to fiat currencies, whether that is

cryptocurrencies or payment in time or skill swapping.

Tracked since: 2009

https://ffonline.foresightfactory.co/content/sector-trend-the-death-of-the-checkout

https://ffonline.foresightfactory.co/content/sector-trend-the-death-of-the-checkout

https://ffonline.foresightfactory.co/content/68d9b667-986b-4e6b-be1d-7f5d83c6b313

https://ffonline.foresightfactory.co/content/9063a98b-ce23-47ad-af18-eaae196d2940

3

Global differences

Cashless systems vary greatly based on a country’s infrastructure and spending habits. The biggest

cashless story of 2017 is the effect of demonetisation in India. Allegedly initiated to reduce the circulation of

counterfeit money and to stimulate a digital society, the controversial policy has led to reports of a lack of

cash flow for manufacturing, unemployment, and a return to bartering. In a country snapshot, Oxford

Economics forecast that demonetisation will push GDP growth down to 6.7% year over year in early 2017.

Japan is the only country in our research which lags significantly behind in interest in contactless cards. In

Japan, only 13% have used a contactless card compared to 34% globally. Although Japan has had a

contactless payment system for transport in its cities since 1997, Japan is still very much a cash-based

society. Many small retailers and restaurants do not accept card payments at all - even in urban areas.

Periods of deflation and low crime rates have also created little incentive to keep money in banks and many

consumers keep money stored in cash on their person or at home. Similar hurdles have been encountered

in other Asian countries where cash remains important in daily transactions such as in Indonesia, where

online services such as Spotify can still be paid for in cash.

When it comes to mobile payment, China takes the lead - twice the global average have used an app or

swiped their mobile in a transaction. This is unsurprising considering the high mobile ownership amongst

our urban, affluent sample in China and the dominance of apps such as WeChat that combine messaging

with orders and payment, and Alipay, the dominant online payment platform.

In developing markets, m-commerce can provide cashless services to consumers who do not have access

to a traditional bank. In How mobile money is driving economic growth, WEF showed that M-PESA, a

mobile payment system that sends money via SMS, has bolstered financial inclusion in Kenya. According to

the research, in 2013 the value of money that was transferred by M-PESA was equivalent to 40% of

Kenya’s GDP in the same year. M-PESA is successful because it relies on SMS, but many mobile finance

systems rely on smartphones and a fast internet connection - conditions that are not yet ubiquitous.

4

What to do...

Invisible payment?

New ways to pay = new ways to value

Who?

Expectations about the speed and ease of payments are being reshaped and customers expect any

payment delay to be eliminated. As payment processes are streamlined, cashiers decentralised and pain

points removed, payment will become near invisible. Brands who can provide seamlessness or who

experiment with novel ways to pay, such as biometric payments, will win favour.

Payment does not always have to be transactional - it can add value too. Cashless payment can be much

more incremental, allowing consumers to personalise exactly the service or product they wish to buy.

Biometric tracking can allow users to pay according to their enjoyment, and for some brands, the act of

paying can become an experience in itself - and an opportunity for branding.

Interest in contactless card usage is highest among Millennials but real usage is most differentiated by

social grade. 15% more AB respondents use contactless cards than DE. Reasons for not adopting new

payment technology were mostly linked to unfamiliarity, followed by security fears. For the 65+, not owning

technology such as smartphones is also a barrier and brands will have to ensure that they do not alienate

consumers in an effort to be more efficient.

5

What will happen next?

5 years ago Now in 5 years

Some major banks offer NFC-

enabled cards but payments

are capped and not all shop

payment systems have NFC

capability.

Although EE launched the

NFC-enabled Cash on Tap

service in 2013, most

consumers only use mobiles

for mobile banking, not

payment.

Apps are trying to facilitate

peer to peer payments but

often this is still conducted in

cash.

All major banks offer NFC-

enabled cards and card use is

popular in general. Only a

minority of shops do not

accept NFC payments -

some independent retailers or

restaurants are cash only.

New smartphones are NFC-

enabled and most banks

support digital wallets. Mobile

payments are picking up.

Social apps are attempted to

integrate peer payments in

messages with varying

success.

One click payments have

become no click payments.

Seamless payments through

biometrics (eg fingerprint) or

mobile / wearable devices are

ubiquitous.

Mobile payments are

integrated in a contactless

financial passport system that

is a single secure channel for

omnichannel purchases

across devices.

Peer payments are conducted

in messaging streams or by

voice command.

6

Sector Impact

Retail

Imagine a single system in which the path to purchase is

always as simple as one click. It doesn’t stop with

purchasing items in stores without the need to queue at a

till, or at the instant purchase of online items - Cashless

Society holds the possibility for easy payments across

all channels, from news stories to that stranger’s

sunglasses. Anything you want to buy becomes a swipe,

click or snap away. Although it may take some time until

we reach a fully integrated system, convenience will be

essential as a Life on Demand does not have time for the

encumberment of cash or clashing systems. We expect

retailers who offer loyalty cards to better link them to

purchases, instantly recognising valued customers

without the need for them to carry additional cards or

input information.

https://ffonline.foresightfactory.co/content/3af3d03f-fa12-4a69-ac7b-4d67da1190c5

7

Sector Impact

Digital

Consumer-facing technology will be key to ensuring that

cashless innovations keep up with consumer demand for

speed, convenience and control. Importantly, consumers

will seek technology that is capable of aggregating all of

their spending and payment options, whilst fluidly

switching across devices or to an AI assistant.

8

Sector Impact

Financial Services

Banks either need to lead innovation or partner with third

party contactless providers to ensure that their customers

can always have early access to the newest payment

options. Furthermore, due to the legacy of trust that

banks hold, they may be instrumental in promoting

consumer uptake of contactless services, either by

improving or verifying safety or promoting the simplicity

and security of payments compared to more traditional

payment options. Banks may also be fundamental to

facilitating cross border and social media payments.

9

Sector Impact

Public Sector and Charities

Charitable donations must become as frictionless as

retail purchases. In a future where cash is used less,

charities can no longer rely upon donations from loose

change and instead must look to integrate one tap

cashless donation points.

10

Digital,Financial Services

Source: Foresight Factory │ Base: 392-3433 online respondents per country aged 16-64 [Indonesia 16-54], 2017 August

Device most used to do online banking

"And for each of these online activities you said you do, please say which of the following devices you use the most often for doing each of these things?" | Use the internet for banking purposes

0%

20%

40%

60%

80%

100%

So

uth

Ko

rea

Sin

gapore

US

A

Au

str

alia

Ca

na

da

Ja

pa

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Ire

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d

Sw

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De

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Fin

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Ch

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Ind

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ia

Me

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Not asked - have not done this activity

Laptop

Desktop

Smartphone

Tablet

11



Using chat messenger to pay a bill in a store/restaurant "Which of the following have you used or would be interested in using a chat messenger service to do?" | Pay a bill in a store or at a restaurant

0%

20%

40%

60%

80%

100%

So

uth

Ko

rea

US

A

Sin

gapore

Au

str

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Ca

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Ja

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Spain

Fra

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Ge

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De

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Ire

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Fin

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Sw

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Ind

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Bra

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Ind

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Me

xic

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UA

E

Ru

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laysia

Not applicable

I have not used chat messenger to do this and am not interested

I have not used chat messenger to do this but am interested

I have used chat messenger to do this but would not use it again

I have used chat messenger to do this and would use it again

12

Digital,Public Sector and Charities


Using chat messenger to make a donation to a charity "Which of the following have you used or would be interested in using a chat messenger service to do?" | Make a donation to a charity

0%

20%

40%

60%

80%

100%

So

uth

Ko

rea

US

A

Sin

gapore

Au

str

alia

Ca

na

da

Ja

pa

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Spain

Ita

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Fra

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Ge

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Ire

lan

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GB

De

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Fin

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Sw

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Chin

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Ind

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aila

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Ind

ia

Bra

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UA

E

Me

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Ma

laysia

Ru

ssia

Not applicable





13

Digital,Utilities


Using chat messenger to pay a utility bill

"Which of the following have you used or would be interested in using a chat messenger service to do?" | Pay a utility bill

0%

20%

40%

60%

80%

100%

So

uth

Ko

rea

US

A

Sin

gapore

Au

str

alia

Ca

na

da

Ja

pa

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Spain

Fra

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lan

d

GB

Ge

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Fin

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a

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aila

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Ind

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ia

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Me

xic

o

UA

E

Ru

ssia

Ma

laysia

Not applicable





14



Using chat messenger to transfer money

"Which of the following have you used or would be interested in using a chat messenger service to do?" | Transfer money to another person

0%

20%

40%

60%

80%

100%

So

uth

Ko

rea

Sin

gapore

US

A

Au

str

alia

Ca

na

da

Ja

pa

n

Spain

Fra

nce

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Fin

lan

d

De

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GB

Ire

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Sw

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Ind

on

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Bra

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Ind

ia

Me

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Ru

ssia

UA

E

Ma

laysia

Not applicable





15

Digital,Retail


Using chat messenger to buy a product or service "Which of the following have you used or would be interested in using a chat messenger service to do?" | Buy a product or service

0%

20%

40%

60%

80%

100%

So

uth

Ko

rea

Sin

gapore

US

A

Ca

na

da

Au

str

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Ja

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Spain

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GB

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UA

E

Ma

laysia

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ssia

Not applicable





16

2025

NOW

Source: Foresight Factory Research | Base: 1000-2000 online respondents per country aged 16+ (China 16-64), 2016 October

Data predictions Biometric payments in 2025 % interested in using their fingerprint as a form of I.D to make purchases by tapping or scanning it | Global average (reported data)

17%

36%

Very interested

Quite interested

27%

15%

20%

Using

Very interested

Quite Interested

63% 54%

In the years to come, growth in FinTech companies will allow

biometric payments to develop. In light of this, we expect more than a quarter of global consumers to be using fingerprint payment by 2025.

I N F L U E N C I N G F A C T O R S

Ownership of biometric payment-enabled devices

Desire for flexible payment options

Concern about security and Identity theft

Anti-password mindset

Aversion to paying by cash and uptake of mobile payment

17

68% 64%

60% 59%

51%

77% 71%

65%

80%

58%

24%

31% 25%

50%

6% 0%

20%

40%

60%

80%

100%

Sweden USA GB China Germany

2016 - Interested 2025 - Interested or using 2025 - Using

Source: Foresight Factory Research | Base: 1000-2000 online respondents per country aged 16+ (China 16-64), 2016 October Note: China - consumers in urban areas and on higher incomes more heavily represented.

Data predictions Biometric payments in 2025 % interested in using their fingerprint as a form of I.D to make purchases by tapping or scanning it

18

0%

20%

40%

60%

80%

100%

EU

ave

rag

e

Ge

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ny

Au

str

ia

Spain

Cze

ch

Re

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Ne

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mb

ou

rg

Belg

ium

US

A

Au

str

alia

Non-cash Cash

Source: Foresight Factory / ING Bank N.V. | Base: 1,000 online respondents per country aged 15+ (500 for Luxembourg), 2017

Perceived levels of security in cash and non-cash payments Please indicate the level of security you believe you have when paying without cash / with cash | Percentage who say “high” or “very high” | 2017

19

0%

20%

40%

60%

80%

100%

EU

ave

rag

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Ge

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Au

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Spain

Ita

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Ne

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Luxem

bourg

Cze

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Tu

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US

A

Non-cash Cash


Perceived levels of privacy in cash and non-cash payments Please indicate the level of privacy you believe you have when paying without cash / with cash | Percentage who say “high” or “very high” | 2017

20 Source: Google Trends (www.google.com/trends)/FFonline, Worldwide, 2016

The uptake of the Cashless Society through the lens of Google searches

Google Trends is a valuable resource for

FFonline, allowing us to monitor our social and

consumer trends through another lens: the

popularity of Google searches over a period of time. (Please refer to the

notes page for further information).

0

20

40

60

80

100

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Month

Searches for "PayPal"

Searches for "Cash"

Searches for "debit card"

Searches for "Bitcoin"

100 = Peak searches

Consumer interest in cashless technology has been growing consistently, as Google searches for Paypal and Bitcoin below demonstrate. On the contrary, interest in traditional types of payment such as debit cards or cash has remained relatively stable excluding interest in cash in countries such as India, which experienced a cash crisis in 2016.

21 21 Source: FF Online Research | Base: 1000-5000 online respondents per country aged 16-64 (Indonesia & S. Africa 16-54), 2016 February

Interest in using an app or swiping your mobile phone to pay for something “Which of these things have you done already and which are you interested in doing in the

future?” | Used an app or swiped your mobile phone at the checkout to pay for something | 2016

Right-click on chart and select Edit Data for demographic data

0%

20%

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60%

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100%

So

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A

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Ja

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Italy

Spain

Irela

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Me

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So

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I have done this

I have not done this, but am interested in doing it in the future

22 22

0%

20%

40%

60%

80%

100%

US

A

So

uth

Ko

rea

Ca

na

da

Ja

pa

n

Au

str

alia

Pola

nd

Sw

eden

Denm

ark

Fin

lan

d

Ita

ly

Cze

ch

Re

p

GB

Ire

lan

d

Spain

Fra

nce

Ge

rma

ny

Ne

the

rla

nd

s

Ch

ina

Ind

ia

Tu

rke

y

Th

aila

nd

Ru

ssia

So

uth

Afr

ica

Bra

zil

Ind

on

esia

Ma

laysia

Me

xic

o

2015 2016

Source: FF Online Research | Base: 1000-5000 online respondents per country aged 16-64 (Indonesia & S. Africa 16-54), 2016 February

Mobile payments usage

“Which of these things have you done already?” | Used an app or swiped your mobile phone at

the checkout to pay for something | 2016


23

0%

20%

40%

60%

80%

100%

Euro

pean

Ave

rag

e

Turk

ey

Pola

nd

Ita

ly

Spain

Ro

ma

nia

Cze

ch

Re

p

Belg

ium

Fra

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Ne

the

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nd

s

UK

Lu

xe

mb

ou

rg

Au

str

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Ge

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ny

US

A

Au

str

alia

2014 2015 2016


“I use physical cash much less than 12 months ago” % who agree or strongly agree | European average of available countries, and by country, including USA and Australia | 2016

24

65% of global consumers have used at least one of the two following payment methods : contactless payments and mobile payments. 11% have used both.

Those consumers who have either used both methods or who have used one and are interested in using the other, are what we call Keen On Cashless.

Source: nVision Research | Base: 1000-5000 online respondents per country aged 16-64 (Indonesia & S. Africa 16-54), 2015 February

Segmentation Analysis : Keen On Cashless

Highest % of

Keen on Cashless

Lowest % of

Keen on Cashless

40% are mobile bankers

36% feel like they don’t manage their finance well

32% feel stressed all the time

25

0%

20%

40%

60%

80%

100%

Au

str

alia

Ca

na

da

US

A

So

uth

Ko

rea

Ja

pa

n

Cze

ch

Re

p

Pola

nd

Irela

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GB

Fra

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Spain

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ly

Fin

lan

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Ge

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Ne

the

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De

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ark

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Ru

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ina

Me

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o

Tu

rke

y

So

uth

Afr

ica

Bra

zil

Ma

laysia

Ind

on

esia

Th

aila

nd

2015 2016


Contactless card usage

Eastern Europe is ahead of the curve as over 7 in 10 have already used contactless payment in the Czech Republic. The biggest increase in use hails from Finland and the Netherlands where contactless card use has nearly doubled from 2015 to 2016 as more banks release NFC cards.

“Which of these things have you done already?” | Used a contactless payment debit/credit card | 2016


26

0%

20%

40%

60%

80%

100%

Euro

pean

Ave

rag

e

Tu

rke

y

Ita

ly

Pola

nd

Spain

Au

str

ia

UK

Ge

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ny

Ro

ma

nia

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Ne

the

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Lu

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mb

ou

rg

Cze

ch

Re

p

Belg

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US

A

Au

str

alia

Have used bitcoin Have not used bitcoin Don't know what bitcoin is No opinion

Source: ING Bank N.V./FFonline | Base: 1,000 online respondents per country aged 15+ (500 for Luxembourg), 2015

Those who have used Bitcoin in the past year

A majority of consumers have not used Bitcoin and nearly 1 in 2 do not know what Bitcoin is. Lack of knowledge is a barrier to uptake and consumers are less likely to use cryptocurrencies if they have access to cashless services from financial institutions.

“In the past twelve months I ...” | % who answered “ I have used Bitcoin”, “I have not used Bitcoin”, “I don’t know what Bitcoin is” and “no opinion” | European average of available countries and by country, including USA and Australia | 2015

27

GB USA France Spain Sweden China Japan

I don't trust my money will be secure 20% 19% 18% 16% 16% 11% 28%

I don't understand the benefits of using this

payment method 18% 17% 15% 13% 23% 12% 21%

I'm happiest making payments with familiar

methods 24% 18% 17% 14% 24% 9% 12%

I don't trust my personal data will be stored

securely or used appropriately 14% 16% 11% 9% 13% 10% 17%

I don't plan to own the technology needed

to make this type of payment 11% 10% 7% 3% 11% 6% 7%

The businesses I regularly buy from won't

accept this payment method 6% 8% 5% 8% 5% 8% 6%

It's too complicated for a person like me 6% 6% 5% 4% 5% 6% 10%

None of these 2% 3% 5% 2% 3% 1% 5%

Other 1% 1% 1% 1% 2% 0% 0%

Source: FFonline Research | Base: 1000-2000 online respondents per country aged 16+ (China 16-64), 2015 September

Reasons for not being interested in Bitcoin

Fears over security and unfamiliarity are the biggest barriers to cryptocurrency uptake - 28% of Japanese consumers do not trust that their money is secure stored as a cryptocurrency.

“Why are you not interested in using - Bitcoin or any other cryptocurrency (eg Litecoin, Dogecoin)” | 2015

28

0%

20%

40%

60%

80%

100%

Ch

ina

Spain

US

A

Sw

ed

en

GB

Ja

pa

n

Fra

nce

Don't know - I have never heard of this type of payment option

I have not used this AND am NOT interested in using in the future

I have not used this BUT am interested in using in the future

I have used this

Source: FFonline Research | Base: 1000-2000 online respondents per country aged 16+ (China 16-64), 2015 September

Paying via social apps: usage and interest

The popularity of WeChat and the WeChat digital wallet accounts for the high use and interest in paying via social apps in China. To date, no other app appears to afford the same level of payment flexibility in another market.

“Which of the following payment methods have you ever used and which would you be interested in using in the future?” | A social network or communication app to pay for a product or service | 2015


29 29 Source: FF Online Research | Base: 1000-5000 online respondents per country aged 16-64 (Indonesia & S. Africa 16-54), 2016 February

Interest in using a contactless card

“Which of these things have you done already and which are you interested in doing in the

future?” | Used a contactless payment debit/credit card | 2016


0%

20%

40%

60%

80%

100%

So

uth

Ko

rea

Ca

na

da

Au

str

alia

US

A

Ja

pa

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Cze

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Re

p

Irela

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Pola

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Spain

Fin

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Fra

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Ge

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Sw

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Ch

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Tu

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Ru

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Ind

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Me

xic

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Ind

on

esia

Th

aila

nd

Bra

zil

Ma

laysia

So

uth

Afr

ica

I have done this

I have not done this, but am interested in doing it in the future

30 30

0%

20%

40%

60%

80%

100%

Au

str

alia

Ca

na

da

US

A

So

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Ko

rea

Ja

pa

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Cze

ch

Re

p

Pola

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Irela

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GB

Fra

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Ge

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Ne

the

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nm

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Sw

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Ch

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Tu

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So

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ica

Bra

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Ma

laysia

Ind

on

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Th

aila

nd

2015 2016


Contactless card usage

“Which of these things have you done already?” | Used a contactless payment debit/credit card |

2016


C O N N E C T E D T R E N D S R E L AT E D S E C T O R S

31

Chat and pay with M-Pesa

Safaricom launched Bonga in closed beta in April 2018. Bonga is a chat messaging service which incorporates mobile money transfer service M-Pesa.

Users will be able to send and receive money, or check their balance without leaving the messaging platform. M-Pesa users will also be able pay businesses and fundraise within social groups on the platform.

By combining payments and social interaction, Safaricom helps consumers connect quickly in a more intuitive way. The move follows platforms in Asia such as WeChat, which integrates messaging with payments, services and social media.

Bonga integrates social messaging with mobile money transfers | Kenya

Connected Communities | Cashless Society

Sector Trend: Social Payments

Financial Services | Telecommunications and Mobile

Link: https://www.bonga.ke/


32

Add any additional keywords here

Digital “piggywallet” for children

In April 2018, Filippo Yacob, CEO of Primo Toys announced Pigzbe , a digital wallet that aims to educate children about finance using cyptocurrency.

Pigzbe uses Wollo, “a network native token” which carries less volatility risk than other cryptocurrencies making it the ideal digital currency for children. Wollo allows parents to create a micro finance system where family members can buy and trade Wollo currency. The wallet comes with a payment card that enables users to spend their Wollo in the real world, as well as a mobile app that will have interactive games that teaches users about finance and cryptocurrency.

Pigzbe aims to solve financial illiteracy by encouraging families to teach children about new forms of currency in an accessible way.

Blockchain piggy bank teaches children about finance | USA

Cashless Society

Financial Services | Work and Education

Link: https://www.pigzbe.com//


33


Invisible payments

In March 2018 BBVA announced the development of “invisible” payments technology.

The technology is being tested at the café and restaurants at Cuidad BBVA, with employees trialling an app to automate their payments using biometric technologies. Currently users can order a coffee or book a table through the app, and their order is automatically registered and paid for through their account. In the future, BBVA aims to use facial recognition technology to recognise users and their orders, allowing customers to pick up their food and automatically be charged in a frictionless experience.

BBVA claims the new technology saves users between seven and ten minutes compared to manually paying, and caters to the consumer desire to move seamlessly through life.

Biometric technology removes friction from purchases | Spain

Cashless Society | Convenience Culture

Financial Services

Link: https://www.bbva.com/en/bbva-launches-its-invisible-payments-strategy/


34

AirAsia launches e-wallet

In March 2018 AirAsia officially unveiled e-wallet BigPay at Money 2020 in Singapore, following a soft launch in Malaysia in January.

Users can add up to ten credit or debit cards to the wallet to top up their balance, and the account is protected by fingerprint ID. As well as paying for items on AirAsia flights, users can pay friends and family by scanning QR codes or syncing their contacts with the app.

AirAsia aims to make their in-flight purchases cashless, reducing the cost of currency exchange rates as consumers fly between Southeast Asian countries.

BigPay will allow planes to go cashless | Asia

Cashless Society

Financial Services | Travel and Hospitality

Link: https://www.bigpayme.com/


35


CoinOut

Appearing on Shark Tank in February 2018, CoinOut is an app that allows customers to receive change from a cash purchase in digital form.

Customers paying with cash can decide to send their change to the CoinOut digital wallet by entering their phone number into the shop’s register, or scanning the QR code on a receipt. The app also offers cash back from selected retailers, with the amount changing everyday to keep customers engaged.

The app aims to bring heightened convenience to cash purchases, removing the pain point associated with receiving change. Retailers can also interact digitally with customers, for example offering greater cash back rewards on certain days.

App allows customers to receive change from cash in a digital wallet | USA

Cashless Society | Convenience Culture

Financial Services | Digital

Link: https://www.coinout.com/


36

Pay for public transport by viewing ads

In November 2016, commuters in Düsseldorf were given the opportunity to pay for a €2.60 public transport ticket by watching four 20 second advertisements on their device.

The number of free journeys each day was finite and first come, first served. The app, WelectGo, proved so popular that the daily allocation of tickets would run out in a matter of hours.

WelectGo gives commuters free travel for viewing advertisements | Germany

Consumer Capital | Cashless Society

Automotive and Mobility

Link: https://www.welect.de/


37


Zara concept store

On 26th January 2018, retail giant Zara opened a concept store at the Stratford Westfield shopping centre in East London.

As well as a selection of womenswear and menswear, the space has a dedicated section for collecting orders placed online, which can be picked up the same day if ordered before 2pm. Changing rooms feature smart mirrors that offer outfit suggestions and coordination options when a garment label is scanned in. Customers can then use self-service checkouts, card payments via Bluetooth and the Zara app to pay.

Zara’s new store is a move towards slicker shopping experiences where tech enhances the customer’s visit and helps to eliminate the more tedious elements like queuing at tills.

Click & Collect store offers ultimate convenience | UK

Cult of Immediacy | Cashless Society

Retail

Link: https://www.zara.com/uk/en/z-stores-l1404.html?v1=11108


38

Finance app adds charity donation button

In January 2018, AI-driven finance chatbot Cleo introduced a new feature for giving to charity. This feature allows users to donate to affiliated charities with one click while in the app.

The bot assists users in saving a flexible amount each month. They are now invited to donate a percentage of this saving each month, with a single click. The two independent charities currently supported through the app are Toynbee Hall and The Money Charity.

This move aims to capitalise on younger consumers desire for easy, flexible donation methods and a preference for cashless payments.

Cleo allows one click donation | UK

Cashless Society

Sector Trend: Hassle-Free Donation

Public Sector and Charities | Financial Services

Link: https://www.meetcleo.com/


39

Payment wearables for Winter Olympic Games

In November 2017, Visa (the exclusive payment technology partner at the Winter Olympic and Paralympic Games in PyeongChang) announced that it would be providing NFC-enabled payment commemorative stickers, Olympic pins, and gloves for contactless payment.

The devices will be available for both athletes and fans, and will be loaded with prepaid amounts of currency for seamless purchasing.

The payment options will provide fans with keepsakes and eliminate the need for cash from the games. They also appeal to consumer demand for convenient, hassle-free transactions that will not interrupt their experience of the event.

Visa introduces gloves, stickers and pins | USA/Korea

Cashless Society | Cult of Immediacy

Financial Services | Digital

Link: https://www.visaeurope.com/newsroom/news/visa-introduces-new-payment-wearables-for-2018-olympic-winter-games


40

MasterCard Assemble

In December 2017, MasterCard launched Assemble, a platform that allows users to check balances of various cards, and set savings goals. Customers can also make real-time payments within the US with a debit card via the peer-to-peer service powered by MasterCard Send.

The first product available will be aimed at Millennials, and offers additional features such as a digital prepaid account, a mobile app and a payment card, The product aims to give consumers a simple, smart and safe way to manage their money.

Digital platform allows users to view all their balances at once | USA

Professionalised Budgeting | Cashless Society

Professionalized Budgeting

Financial Services

Link: https://newsroom.mastercard.com/press-releases/new-mastercard-digital-platform-offers-holistic-management-for-prepaid-accounts/?utm_source=Triggermail&utm_medium=email&utm_campaign=Post%20Blast%20%28bii-

payments%29:%20Atos%20bids%20on%20Gemalto%20%E2%80%94%20Stripe%20launches%20beta%20test%20in%20India%20%E2%80%94%20Mastercard%20targets%20millennials&utm_term=BII%20List%20Payments%20ALL


41


Target launches digital wallet

In December 2017, Target launched its Wallet in the Target app, giving customers an easier way to pay and save at Target stores.

Wallet aims to reduce the time taken at in-store check-outs, and combines digital savings - including Cartwheel offers and Weekly Ad coupons - with its 5% REDcard discount. Target also hopes to be able to GiftCards within the Wallet soon.

Wallet makes check-out quicker and includes rewards | USA

Cashless Society

Retail | Financial Services

Link: https://corporate.target.com/article/2017/12/wallet-in-target-app


42


Gifting through PayPal

PayPal has begun offering digital gift cards after finding that over half (52%) of American consumers “wish they could ask for money, rather than traditional presents”.

For Christmas 2017, PayPal has partnered with Leandra Medine of fashion blog Man Repeller to design holiday-themed digital gift cards and greetings.

Online payment platform offers digital gift cards | Global

Cashless Society

Financial Services | Retail

Link: https://www.paypal.com/stories/us/seize-the-season-with-paypal-man-repellers-leandra-medine

43

Online shopping driven by simplicity and price

Source: Global Trendspotter Network, 2016

Online shopping is popular due to its convenience and cheaper prices. Shopping directly through social media platforms like Instagram is an established consumer behaviour.

Most Indonesians are buying things online as they are cheaper and they do not have the time to visit the brick-and-mortar stores. Most of my friends are buying things online, even my

boyfriend bought sport equipments online instead of buying in-store... Physical stores usually provide discounts to encourage buyers to buy

in-store. The stores are usually full of people only when the sale season is on.... [I also use] Instagram. It is not an e-commerce site

but a lot of accounts selling items with lower prices.

Sabrina INDONESIA

Tokopedia is an Indonesian online

marketplace that allows

entrepreneurs and small

businesses to open online stores

Huntstreet is an online

marketplace that focuses on pre-

owned designer clothing.

Consumers can pay for goods

through instalments.

44 Source: Global Trendspotter Network, 2016

Smart wristbands widely used in Indonesian theme parks

So far the most innovative and common use of the smart wristband is at

amusement parks.

Indonesian water park Waterbom gives visitors a smart wristband called SPLASH BAND that stores their credit card information, allowing them to make

cashless payments throughout their visit.

The most widespread usage of wearables in Indonesia is in the leisure and tourism sector.

Lido Lakes is a theme park and resort in development just outside of Jakarta. The park will utilise wristbands and smartphones to create an

immersive, seamless experience for guests.

Sabrina INDONESIA


Singapore : cautiously cashless

People here are using less cash than before mainly because younger generations are more receptive to technology and

are steadily replacing the older generation as the main spenders.

The most important payment methods are still the conventional ones: debit cards, credit cards and NETS cards.

Newer innovations are still considered ‘newfangled’ and most consumers are

adopting a ‘wait and see’ attitude. Some people, more commonly older ones, are

concerned about the safety of such systems. This isn’t based on any sophisticated

knowledge of the underlying technologies and their weaknesses, but rather a general

distrust of anything new.

While keen to ditch cash in favour of card payments, Singaporean consumers are distrustful of other cashless payment innovations until they are mainstream.

Daniel SINGAPORE

NETS was founded to establish

Singapore’s national chip and pin scheme.


Digital wallets enter the mainstream

The innovation that has been receiving the most mainstream attention recently is mobile wallet

technology.

Dash is the m-wallet from Singtel, Singapore’s largest Telco. The wallet allows for contactless payments, payments abroad

and swipe payments to friends.

DBS Bank introduced the mobile banking solution PayLah! which allows users to send and receive

money instantly, pay online and pay bills.

Local banks in Singapore were the first to roll out viable wallet apps thanks to their network of relationships with consumer businesses.

Daniel SINGAPORE


Cash sometimes still king in Singapore?

Hawkers and peddlers accept only cash, along with many smaller shops which loathe the hassle and cost of

incorporating cashless payment systems, and even some large companies like KFC limit their cashless options, I presume

in order to manage costs. So cash is still indispensable in some situations. On taxis, credit/debit card payment levies a whopping 10% admin fee, so passengers rarely pay that way.

The major telcos accept cash payment at their brick-and-

mortar outlets for broadband, pay-TV and mobile services. Some

online retailers, the largest ones such as Qoo10 also accept

limited cash on delivery options.

In Singapore, there are many circumstances where cash remains the only or preferred payment option. The ability to use cash to pay for Uber, e-commerce, TV, broadband and mobile facilities suggests that many Singaporeans are still more comfortable with cash.

Daniel SINGAPORE

Uber Singapore started accepting cash

payments on their previously card-only booking

platform. This is reportedly to capture both

students and older demographics.

48

Strong preference for cashless in Philippines


Though there are still occasions where cash payment is appropriate, consumers in the Philippines generally are much more strongly drawn to online, mobile and contactless payments.

Camille PHILIPPINES

Filipinos would rather pay via Dragonpay and

online banking only because it is much easier

than to line in a queue at the bank. Dragonpay is

an online payment facility that we use to pay for

certain bills. We access online banking also via our

mobile phones. There are still occasions where

people pay in cash or using card payments. I

use a contactless card from my provider PayMaya.

Left: contactless

card from PayMaya

Right: Dragonpay

49

Cashless payment in Thailand


Cashless payment options are thriving in Thailand. While all banks have their own reliable online banking systems in place and social media payment is on the rise too, government is launching PromptPay, which will eliminate the risk of bringing cash to public places.

Nok THAILAND

The Thai government is now launching a new

electronic transaction service called Prompt

Pay in accordance with the National E-

Payment Master Plan. Prompt Pay users can

transfer money through the ID or mobile phone

numbers of recipients, minimising the risk of

bringing cash to public places. […] Now every

bank has its own convenient online service that

allows customers to pay for many types of

products and services easily. To facilitate the

customers’ payment process, more and more

business allow their customers to pay

through various social media.

For more information please contact your account team.

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