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The Use of Cash Dwindles Less Than You May Think

Paul Farrell

Global payments revenue is expected to grow 9% annually through 2022, which equates to roughly $1 trillion of net new revenue, according to an October 2018 McKinsey report. Interestingly, the report states that “in the U.S., in-person use of digital wallets will increase at a 45% compound annual growth rate to reach nearly $400 billion in annual flows by 2022. Although most of this growth is expected to be on ‘pass through’ wallets like Apple Pay, private-label wallets such as (SBUX) and (WMT) Pay—both of which have enjoyed impressive early adoption—will also continue to increase in popularity.” Even after growing that quickly, digital wallets will represent less than 10% of U.S. consumer in-person point-of-sale payments in 2022.