In 2023, the number of consumers who pay contactless with a smartphone or smartwatch will have increased by almost 10 percent. This is a conclusion from a study by the Dutch Payment Association. A significant increase can be seen both at the checkout and in public transport. What this means for the festival and event sector can be read on this page.
Contactless payment is (again) on the rise
In 2022, 3 out of 10 consumers paid with a smartphone or smartwatch at the checkout of Dutch stores. In 2023, this was 4 out of ten. More precisely in percentages, we see an increase from 30% to 37%. Paying with a card has approximately the same share, and the number of people paying with cash remains approximately the same. Of course, it is not a competition, these figures merely indicate trends in society. Contactless payment has accelerated during the Corona pandemic and this has not changed in the period afterwards.
With the smartphone in public transport
Since June 2023, it has been possible to check in or out of public transport with a contactless payment card, which applies throughout the Netherlands. This can be done with a public transport card, but also with a debit card, physically or on your mobile phone. This is already being used a lot; 3 out of 10 travellers already choose this option. These figures specifically concern people who use the basic rate without discount. Contactless payment is increasingly creating fewer barriers, and this is being used eagerly.
iDEAL payments have risen again
If we look at web shops, iDEAL now has a market share of 75% in the Netherlands. Credit cards are used in 10% of payments in web shops. In addition, 95% of iDEAL payments are approved with a mobile banking app. This figure is also important for the acceptance of every payment method; it simply has to work.
Battle for contactless payment
For payments outside web shops, the share of cash payments will be 20 percent in 2023. That is approximately the same as in 2022. So it comes down to smartphones and smartwatches gaining ground on the old, trusted debit card. This is not surprising, because these devices can process much more than just PIN payments. You can install apps for public transport, or grab a shared bike on the street. Pay for a drink in the catering industry during an event etc. As long as the battery is not empty, the possibilities are endless.
More convenience, more spending
Despite high inflation, high energy rates or price increases in shops and catering, more was spent in 2023 than in 2022. There are two important reasons for this; ease of payment and trust.
1. Ease of payment
Firstly, it is very easy to pay contactless with a mobile device. You have it in your hand or on your wrist, just scan and you’re done. Digital payment also works at festivals and during events. A scan or swipe at the bar is much faster and more practical than queuing for festival tokens. If you want to know more about this, please contact the specialists at Moneycomb. We are happy to help you.
2. Trust
Then there is also trust. In the beginning of ‘chipping’ the maximum amount was 25 euros, after that you had to enter that PIN code again to pay contactless. If you have a smartphone with fingerprint or facial recognition, you can safely pay larger amounts. And it does not matter that Apple or Android is ‘between’ the transaction. In fact, this chain can even be safer thanpaying with a debit card because of the encryption. The public trusts contactless payment because it works well and there are hardly any problems with it.
Let’s not forget inclusivity, which is also the focus of Betaalvereniging Nederland. For example, payment transactions must be accessible to people who have difficulty with current options, and must remain accessible to a target group that cannot simply make the transition to digital. The figures also show that there is a need for options that exist side by side, with modern innovations that offer structural added value.
Contactless payment at festivals
At Moneycomb, we are specialised in contactless payment at festivals. For years, we have been advocating for digital PIN in various forms. With a debit card, smartphone, but also with bracelets that are provided with a prepaid balance. Removing barriers is a core value within our team. We help entrepreneurs sell products, which is better than saying ‘no’. That is why the figures from Betaalvereniging Nederland do not surprise us. They are not specifically about paying at festivals and events, but the trends we see are the same.
Would you like to know more about contactless payments at festivals and events? Then schedule a no-obligation consultation with one of our employees.