Global Banknote Market Transformation: Pandemic Pushes Shift to Digital and Polymer Currency
The world of finance is constantly evolving, and the banknote market is no exception. The global banknote market is undergoing a significant transformation, and it's important to understand the driving forces behind this change. The rise in banknotes in circulation, the popularity of polymer banknotes, and the increasing adoption of electronic payments around the world are key indicators of this evolution.
Banknote Market Undergoing Transformation
One of the most notable changes in the banknote market is the rise in the total volume of banknotes in circulation. In the United States, for example, the total volume of banknotes in circulation has increased from 41.6 billion in 2017 to 50.3 billion in 2020, a growth of nearly 8.7 billion notes. Despite a slight dip in growth rate during the COVID-19 pandemic, the global banknote market remains positive.
Total Volume of Banknotes in Circulation Increases Globally
One of the key drivers of this positive trend is the popularity of polymer banknotes. Polymer banknotes are preferred due to their durability, lower environmental impact, and cost-effectiveness in production and replacement. Currently, 15% of the 1,026 different banknote denominations worldwide are made of polymer substrates, compared to just 7% in 2019. This shift towards polymer banknotes represents a move towards a more efficient, durable, and sustainable financial system.
Polymer Banknotes Gaining Popularity for Durability and Sustainability
Another important trend in the banknote market is the increasing adoption of digital payments around the world. Market leaders like PayPal and Google Pay have transformed the industry with simplified banking transactions, leading to a significant increase in online purchases post-pandemic. The total transaction value in digital payments is expected to reach USD 1801 billion in 2022.
Adoption of Digital Payments on the Rise Worldwide
In the United Kingdom, PayPal is one of the top businesses offering all types of banking transactions, and the pandemic has led to a surge in e-commerce online payments. In Brazil, progress is being made toward a shift to internet payments, with 40% of transactions still made in cash at the moment. Meanwhile, Nigeria has introduced electronic payment systems with numerous apps like Tingg, Paga, and Mobile Money, leading to a strong prevalence of digital payments following the pandemic.
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Financial System Evolving Towards Efficiency, Durability, and Sustainability
In conclusion, the global banknote market is undergoing a transformation towards a more efficient, durable, and sustainable financial system. The rise in banknotes in circulation, the popularity of polymer banknotes, and the increasing adoption of electronic payments around the world are all indicators of this evolution. The future of currency is one that is more digital and sustainable, and it's exciting to see how these trends will continue to shape the financial landscape in the years to come.
Find out more:- Global Banknote Market Analysis and Forecast 2028
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