Digital Payment Barometer 2022: The rise of digital payments continues

Since the COVID-19 pandemic, Belgians have adjusted their payment behavior and increasingly turned to digital payments. One payment method was particularly favored: contactless card payments. Its popularity has continued to rise, becoming a habit for Belgian consumers. Nearly three-quarters of Belgians (74%) have made at least one payment with a contactless card in a physical store, compared to only 47% before the pandemic. Almost three-quarters of Belgians also report being well-acquainted with contactless card payments, up from 43% before the pandemic.

Contrary to common belief, it is not the younger generation that makes the most use of contactless payments. The age groups of 35-44 years and 55-64 years are the most enthusiastic about contactless payments: 81% of them have made at least one contactless payment.

Furthermore, payment with a contactless card has become Belgians' preferred payment method, with 40% stating they prefer it over other payment methods.

Whether this trend will continue in the future remains to be seen, but it appears that contactless card payments have a promising future, as 71% of those who do not yet use contactless payments are considering doing so in the future.

The number of Belgians who have made at least one mobile payment in a physical store has increased: in 2022, 4 out of 10 Belgians use these methods, compared to 3 out of 10 before the pandemic. When distinguishing between mobile payment options, 33% of Belgians have paid via QR code in a store, and 21% have used a wearable device.

Regarding mobile payments via QR code, Belgians indicate increasing familiarity with it: 42% in 2022, up from 34% in 2021. Mobile payments with a QR code in physical stores are most popular among younger generations: 44% of 16-24-year-olds and 25-34-year-olds have made payments this way, rising to 48% for 35-44-year-olds.

Mobile payments with a wearable device are particularly popular among 16-24-year-olds, with 46% of them having made a purchase in this manner.

Among 16-24-year-olds, mobile payment has become the preferred payment method (27%).

Finally, it is expected that the use of mobile payments will increase in the future, with nearly half of Belgians (47%) who do not currently use mobile payments planning to do so in the future.

According to the survey results, 84% of Belgians prefer digital payments.

Despite a slight resurgence of cash usage following the end of health restrictions, its usage has declined in recent years. Before the pandemic, for example, 72% of Belgians reported making cash payments in a given week, compared to 59% now.

One of the reasons for this is that fewer Belgians carry cash. Belgians now have an average of 55 euros on hand, compared to 61 euros before the COVID-19 pandemic. Moreover, 6% of Belgians never carry cash with them, and 40% have no more than 20 euros in their wallets.

Belgians continue to shop online eagerly. 90% of Belgians have shopped on the internet at least once. In general, they mostly use their debit cards for online purchases, regardless of the purchase amount. Credit cards, however, are more popular for larger amounts. Mobile applications are also an ideal means for making online payments: approximately 1 in 5 Belgians use them for online payments.

Starting from July 1, 2022, consumers all over the country can make digital payments. This follows the new law that generalizes digital payments in all businesses and for independent professionals. Consumers now have the choice: pay using a digital payment method or pay in cash.

This new law aligns with changing consumer behavior and provides merchants with the opportunity to better meet their customers' expectations. Indeed, 1 in 10 Belgians has already left a store where digital payments were not possible.

July 1st is therefore a good occasion to once again highlight Digital Payment Day, an initiative by partners Febelfin, Bancontact Payconiq Company, Mastercard, Visa, and Worldline. The goal is to encourage consumers to make their purchases digitally, using a card, smartphone, watch, or other wearables. By making digital payments, you also help merchants avoid a shortage of 5 and 10 eurocent coins. Due to the war in Ukraine, there is a shortage of raw materials, making it difficult to mint these coins.

The Digital Payment Barometer compiles the results of a study on payment trends in Belgium conducted by the Vrije Universiteit Brussel. This research was carried out within the Department of Applied Economics by Prof. Dr. Leo Van Hove, Professor of Monetary Economics, and Dr. Ellen Van Droogenbroeck, postdoctoral researcher and guest professor. In March of this year, a representative sample of 1,115 Belgians were surveyed online and by phone about their payment habits and preferences. The results shed light on the payment behavior of Belgians and provide insight into the evolution of digital payments. The Barometer is one of the initiatives aimed at promoting such payments. It was launched in 2020, and the first results were made public in 2021.