15 October 2020 – Research from global payments leader Elavon reveals a strong uptake in online spending among those aged 55-65 and a rise in digital payments, including card and contactless methods, across all demographics.
In a survey on the ecommerce and payment habits of 1093 adults across Ireland with Ipsos Mori, Elavon found that 37% of 55-65s spent more online than before the start of the ‘lockdown’ period in Ireland. The research showed online spending increased across all age groups as more people opt to shop from home. Across the country in July 2020, ecommerce had risen year-on-year by 16% (€311 million) according to the Central Bank of Ireland.1
Elavon’s research also revealed that 59% of adults in Ireland will actively opt for contactless and card payments as their preferred method for in-person purchases going forward. Similarly, the Central Bank of Ireland shows reductions in cash use, and consequently less cash has been withdrawn from ATMs; the value of ATM withdrawals is down 31% in August 2020 compared to 2019. 2
16-24-year olds were the least likely in Ireland to use cash, according to Elavon’s research, with just 12% seeking to pay using coins or notes. The most likely to use cash were 55-65-year olds at 17% - even so, this group is still three times more likely to use contactless and card payments.
The research confirmed a similar increase in eCommerce and cashless adoption in other parts of Europe. About half of all adults (52%) in the UK and (48%) in Poland and nearly a third of adults (32%) in Germany, increased their online spending since COVID-19. 68% of all adults in the UK and 59% in Poland said they would actively seek to use card or contactless payment going forward; in Germany, it’s just over a third (34%).
Commenting on the findings, Eric Horgan, Head of Products, Elavon Europe said: “Online consumer spending and digital payment have accelerated in Ireland, like in many other parts of Europe, due to COVID-19. This trend is present across different generational groups. Online shopping became crucial when physical stores shut, but with social distancing ingrained and level five restrictions in place, many habits seem here to stay.”
“It’s a good opportunity for businesses to step-up. The easier companies can make the shopping and payments experience for customers, the more likely they can maximise shopper loyalty and revenue potential.”
1 Central Bank of Ireland, “Credit and Debit Card Statistics, July 2020”, 31 August 2020. https://www.centralbank.ie/docs/default-source/statistics/data-and-analysis/credit-and-banking-statistics/credit-and-debit-card-statistics/credit-and-debit-card-statistics-july-2020.pdf?sfvrsn=4
Elavon is a leading global payments company with more than 4,300 employees and operations in 10 countries. A subsidiary of U.S. Bancorp (NYSE:USB), Elavon provides businesses with the technology needed to accept payments from customers, whether they are shopping in stores, at home or on the go. Its platform is distinctive in that it is common across countries, making it easier for businesses to get their payment system up and running quickly and securely.
Elavon Financial Services DAC. Registered in Ireland – Number 418442.
Registered Office: Building 8, Cherrywood Business Park, Loughlinstown, Co. Dublin, D18 W319, Ireland.
Elavon Financial Services DAC, trading as Elavon Merchant Services, is regulated by the Central Bank of Ireland.