How Order And Pay technology is changing how we use cash

Digital payments have been changing the payment industry for a long time, with the evolution of cashless payments making it easier to pay online. In the year 2000, cash made up about 50% of purchases. In 2020 that number was down to just 12.4%, declining gradually by about 10% every 5 years.

2020 really exaggerated the cashless movement as people were reluctant to touch cash for hygiene reasons in the middle of a pandemic. As such, mobile payments and digital card payments are becoming more and more popular, with experts suggesting that by 2026 cash payments could be making up just 0.5% of all payments.

Yoello has played a crucial role in changing how we use cash in the past 2 years, making online payments quicker, easier and safer than ever before. Order And Pay technology provides the next generation of cashless payments, with mobile ordering becoming more popular than ever.

Take a look at how order and pay technology is changing how we use cash, and why consumers are adopting it so rapidly.

Order And Pay Via Mobile Becomes More Popular Year On Year

Once upon a time, when you wanted to buy something you paid by cash or card. This involved physically moving to where you needed to pay, often being in close proximity to other people.

In the modern world, where COVID-19 has shaped a lot of our social practices, this is no longer an option. The next generation of spenders are much more likely to use order and pay technology that can be accessed via mobile, with the global mobile pay volume predicted to increase to an astonishing $6 trillion by 2024.

In-person payments are still a vital stream of income for industries like hospitality, where the customer needs to be present in order to access the product or service. In these industries it is vital that payment can be taken with ease, in a safe manner, and often mobile ordering is the preferred method. 

Young People Are Rapidly Adopting Order And Pay Technology

It comes as no surprise that young millennials are the primary users of mobile pay technology, as the generation seems to be more attached to their mobiles than any other. Studies have shown that 79% of millennials sleep with their phones by their beds and over half wake up to check it at least once per night. 

As a generation, they are super comfortable with the idea of using their mobiles to make life easier, and order and pay technology fits the brief. Young millennials were found to be the primary users of mobile payments apps in 2019 with 41 per cent stating that they had switched to apps for payments.

That said, in a post-pandemic world it is actually the older generations who are adopting mobile ordering rapidly. This is perhaps due to the increased COVID-19 risks for older generations, and the importance of cashless technology in facilitating social distancing. Visa recently found that Europeans aged 55-64 are the group with the fastest growth rate for mobile banking adoption, likely due to their desire to socially distance effectively.  

Why Is Order And Pay Technology Thriving?

Order and Pay technology is surging in popularity, in part thanks to increased hygiene compliance standards, but also due to digital transformation. Arguably, COVID-19 has accelerated the mobile payment revolution that was already in place pre-pandemic.

Some of the key reasons that order and pay technology is thriving are:

1. Hygiene when making in-person payments

One of the key reasons that people are moving away from cash and over to mobile payments is hygiene. With COVID-19 having changed how we shop and pay, many people are much more comfortable paying on their own mobile device or other form of contactless payment as opposed to cash, which is notoriously dirty. 

Cashless payments like mobile ordering allow for minimal human to human contact, as no cash has to exchange hands. 

2. Ease when paying

Another fundamental reason that order and pay technology is thriving is that it makes life so much easier. When ordering via mobile, customers can order and pay from the comfort of their own seat, making the user experience much more enjoyable. This is especially true when eating or drinking out of home, as it removes the need for people to stand up and queue in line to place their order. 

For mobile-first generations like millennials and Gen Z, this makes a lot more sense than more traditional methods of ordering.

3. Increased trust in mobile technology

Likewise, order and pay technology has increased in popularity as the general public trusts mobile technology more and more year on year. In 2019, trust in technology reached an all time high as 78% of the global population stated that they trust in technology to make their lives better.

As such, consumers have adopted order and pay technology, trusting in its capacity to make paying via mobile quick and simple. Mobile ordering makes sense to the modern consumer, and nowadays it is an expected service when eating and drinking out. Learn more about how mobile ordering technology is a great alternative to cash, by reading our recent article on why customers spend more with Yoello.