A third turn to digital money transfers during COVID-19

Nearly a third (32 per cent) of consumers have turned to digital wallets to send international remittances and money transfers during the COVID-19 pandemic.

A Sapio study of 8,000 consumers across the UK, US, Canada, Germany, Austria, Bulgaria and Italy, for Paysafe, found that more than a quarter (28 per cent) had sent money to family or friends once or twice during the first month of lockdown, as global restrictions on movement prevented them from making the payments in person.

A further 20 per cent of consumers made more than two transfers in the month.

The pandemic has also initiated the shift away from cash, with more than half (52 per cent) stating they would reduce their use of cash in favour of digital payments going forward. More than four in ten (43 per cent) said they reduced the physical handling of cash due to health concerns over infection risk.

Only 15 per cent of consumers said they would use some form of physical payment method to send money overseas during the pandemic, while 38 per cent of consumers say they will be shopping online more – even when lockdowns have been fully lifted.

Lorenzo Pellegrino, chief executive of Skrill, Neteller and Income Access at Paysafe, said: “COVID-19 continues to be a catalyst for change across the whole payments industry - consumers seem to be switching to digital offerings, signalling a definite shift in consumer preference for truly frictionless payment methods.

"Even as cash-based money transfer options reopen, preferences towards digital options, induced by the pandemic, are unlikely to subside.”

    Share Story:

Recent Stories


Data trust in the AI era: Building customer confidence through responsible banking
In the second episode of FStech’s three-part video podcast series sponsored by HCLTech, Sudip Lahiri, Executive Vice President & Head of Financial Services for Europe & UKI at HCLTech examines the critical relationship between data trust, transparency, and responsible AI implementation in financial services.

Banking's GenAI evolution: Beyond the hype, building the future
In the first episode of a three-part video podcast series sponsored by HCLTech, Sudip Lahiri, Executive Vice President & Head of Financial Services for Europe & UKI at HCLTech explores how financial institutions can navigate the transformative potential of Generative AI while building lasting foundations for innovation.

Beyond compliance: Transforming document management into a strategic advantage for financial institutions
In this exclusive fireside chat, John Rockliffe, Pre-Sales Manager at d.velop, discusses the findings of Adapting to a Digital-Native World: Financial Services Document Management Beyond 2025 and explores how FSIs can turn document workflows into a competitive advantage.

Sanctions evasion in an era of conflict: Optimising KYC and monitoring to tackle crime
The ongoing war in Ukraine and resulting sanctions on Russia, and the continuing geopolitical tensions have resulted in an unprecedented increase in parties added to sanctions lists.