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Tapping into Card Payments: The Countries Reaping the Benefits of the Cashless Economy

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Financial studies in terms of national productivity may be complicated, but provide a good understanding of how well or badly the economy is doing.
  • Study looks at all 29 European Countries 
  • UK at no.1 spot with £81.3 trillion taken in cashless transactions 
  • Malta at the bottom of the list with only £0.089 trillion spend and prevailing cash culture

New research by Expert Market, a leading B2B comparison site for card payment systems, has revealed the countries where digital payment technologies are helping economies thrive.

The report uses the most recent data for all 29 countries in the European Union and considers the number of cashless transactions and total revenue from digital payments to determine the countries with the most digitally-ready businesses.

revenue from cashless paymentTap That: UK Leading the Way in the Cashless Coup

Topping the list is the UK, which generated a mammoth £81.3 trillion (90.9 trillion Euros) in cashless payments the year ending 2016 – the highest total number of cashless payment transactions (25,154 million).

As technological advances in the payments space continue to evolve, reports from this year revealed that card payments in the UK surpassed cash transactions for the first time, suggesting that the convenience of card payment options might be driving a rise in cashless spending.

Second on the list for card payment readiness is Germany. Despite being relatively late to the card payments party (with 80% of transactions conducted in cash in 2014)1, new measures such as bringing in card payments in all taxis in Berlin in 2015 have triggered a contactless revolution that puts their annual cashless spend at £48.7 trillion (54.5 trillion Euros).

Other countries in the top ten include Germany, France and the Netherlands.

  • https://qz.com/262595/why-germans-pay-cash-for-almost-everything/

TOP TEN:

Rank Country
1 United Kingdom
2 Germany
3 France
4 Netherlands
5 Spain
6 Poland
7 Italy
8 Czech Republic
9 Belgium
10 Finland

Cash Me Outside (The Law): Malta Rejects Digital Payments Revolution

At the other end of the scale is Malta, which came last for cashless payments with only £0.089 trillion (0.1 trillion Euros), for context, in that year the top ranking UK took 535 times more cashless transactions.

In 2016, research by the European Central Bank showed that 92% of transactions in Malta still involved cash. Rather than being a quaint nod to tradition, common opinion is that Malta’s reluctance to move money digitally is actually linked to ‘hidden economies’ and using cash for tax evasion – this may still present issues for businesses looking to tap into digital sales as a lack of demand has reduced the availability of cashless payment options.2

BOTTOM TEN:

Rank Country
20 Slovakia
21 Greece
22 Croatia
23 Bulgaria
24 Lithuania
25 Slovenia
26 Latvia
27 Estonia

2

https://www.timesofmalta.com/articles/view/20171128/local/malta-is-cash-capital-says-european-central-bank.66427 1

28                                    Cyprus

29                                    Malta

number of cashles paymentsJared Keleher who headed up the research comments: “For most countries the march of cashless is inevitable, but the winners in the next few years will be the countries that can equip older sectors with cashless capabilities. Looking at Germany in second position which so recently lagged behind, initiatives like theirs to update payments in taxis could push businesses into the modern world and help their economies to keep up with a changing world. Cashless economies allow people to make payments at any time anywhere, and crucially, in any currency. The global consumer market is just a card machine away!”

Notes:

If you’d like to use any of the data from this campaign please ensure you provide a link back to us:

https://www.expertmarket.co.uk/merchant-accounts#cashless-europe

For press enquiries please contact:

Grace Garland

[email protected]

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Sunak to use budget to expand apprenticeships in England

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Sunak to use budget to expand apprenticeships in England 1

LONDON (Reuters) – British finance minister Rishi Sunak will announce more funding for apprenticeships in England when he unveils his budget next week, the government said on Friday.

Employers taking part in the Apprenticeship Initiative Scheme will from April 1 receive 3,000 pounds ($4,179) for each apprentice hired, regardless of age – an increase on current grants of between 1,500 and 2,000 pounds depending on age.

The scheme will extended by six months until the end of September, the finance ministry said.

Sunak will also announce an extra 126 million pounds for traineeships for up to 43,000 placements.

Sunak’s March 3 budget will likely include a new round of spending to prop up the economy during what he hopes will be the last phase of lockdown, but he will also probably signal tax rises ahead to plug the huge hole in the public finances.

Sunak is also expected to announce a “flexi-job” apprenticeship scheme, whereby apprentices can join an agency and work for multiple employers in one sector, the finance ministry said.

“We know there’s more to do and it’s vital this continues throughout the next stage of our recovery, which is why I’m boosting support for these programmes, helping jobseekers and employers alike,” Sunak said in a statement.

(Reporting by Andy Bruce, editing by David Milliken)

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UK seeks G7 consensus on digital competition after Facebook blackout

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UK seeks G7 consensus on digital competition after Facebook blackout 2

LONDON (Reuters) – Britain is seeking to build a consensus among G7 nations on how to stop large technology companies exploiting their dominance, warning that there can be no repeat of Facebook’s one-week media blackout in Australia.

Facebook’s row with the Australian government over payment for local news, although now resolved, has increased international focus on the power wielded by tech corporations.

“We will hold these companies to account and bridge the gap between what they say they do and what happens in practice,” Britain’s digital minister Oliver Dowden said on Friday.

“We will prevent these firms from exploiting their dominance to the detriment of people and the businesses that rely on them.”

Dowden said recent events had strengthened his view that digital markets did not currently function properly.

He spoke after a meeting with Facebook’s Vice-President for Global Affairs, Nick Clegg, a former British deputy prime minister.

“I put these concerns to Facebook and set out our interest in levelling the playing field to enable proper commercial relationships to be formed. We must avoid such nuclear options being taken again,” Dowden said in a statement.

Facebook said in a statement that the call had been constructive, and that it had already struck commercial deals with most major publishers in Britain.

“Nick strongly agreed with the Secretary of State’s (Dowden’s) assertion that the government’s general preference is for companies to enter freely into proper commercial relationships with each other,” a Facebook spokesman said.

Britain will host a meeting of G7 leaders in June.

It is seeking to build consensus there for coordinated action toward “promoting competitive, innovative digital markets while protecting the free speech and journalism that underpin our democracy and precious liberties,” Dowden said.

The G7 comprises the United States, Japan, Britain, Germany, France, Italy and Canada, but Australia has also been invited.

Britain is working on a new competition regime aimed at giving consumers more control over their data, and introducing legislation that could regulate social media platforms to prevent the spread of illegal or extremist content and bullying.

(Reporting by William James; Editing by Gareth Jones and John Stonestreet)

 

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Britain to offer fast-track visas to bolster fintechs after Brexit

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Britain to offer fast-track visas to bolster fintechs after Brexit 3

By Huw Jones

LONDON (Reuters) – Britain said on Friday it would offer a fast-track visa scheme for jobs at high-growth companies after a government-backed review warned that financial technology firms will struggle with Brexit and tougher competition for global talent.

Finance minister Rishi Sunak said that now Britain has left the European Union, it wants to make sure its immigration system helps businesses attract the best hires.

“This new fast-track scale-up stream will make it easier for fintech firms to recruit innovators and job creators, who will help them grow,” Sunak said in a statement.

Over 40% of fintech staff in Britain come from overseas, and the new visa scheme, open to migrants with job offers at high-growth firms that are scaling up, will start in March 2022.

Brexit cut fintechs’ access to the EU single market and made it far harder to employ staff from the bloc, leaving Britain less attractive for the industry.

The review published on Friday and headed by Ron Kalifa, former CEO of payments fintech Worldpay, set out a “strategy and delivery model” that also includes a new 1 billion pound ($1.39 billion) start-up fund.

“It’s about underpinning financial services and our place in the world, and bringing innovation into mainstream banking,” Kalifa told Reuters.

Britain has a 10% share of the global fintech market, generating 11 billion pounds ($15.6 billion) in revenue.

The review said Brexit, heavy investment in fintech by Australia, Canada and Singapore, and the need to be nimbler as COVID-19 accelerates digitalisation of finance, all mean the sector’s future in Britain is not assured.

It also recommends more flexible listing rules for fintechs to catch up with New York.

“We recognise the need to make the UK attractive a more attractive location for IPOs,” said Britain’s financial services minister John Glen, adding that a separate review on listings rules would be published shortly.

“Those findings, along with Ron’s report today, should provide an excellent evidence base for further reform.”

SCALING UP

Britain pioneered “sandboxes” to allow fintechs to test products on real consumers under supervision, and the review says regulators should move to the next stage and set up “scale-boxes” to help fintechs navigate red tape to grow.

“It’s a question of knowing who to call when there’s a problem,” said Kay Swinburne, vice chair of financial services at consultants KPMG and a contributor to the review.

A UK fintech wanting to serve EU clients would have to open a hub in the bloc, an expensive undertaking for a start-up.

“Leaving the EU and access to the single market going away is a big deal, so the UK has to do something significant to make fintechs stay here,” Swinburne said.

The review seeks to join the dots on fintech policy across government departments and regulators, and marshal private sector efforts under a new Centre for Finance, Innovation and Technology (CFIT).

“There is no framework but bits of individual policies, and nowhere does it come together,” said Rachel Kent, a lawyer at Hogan Lovells and contributor to the review.

($1 = 0.7064 pounds)

(Reporting by Huw Jones; editing by Jane Merriman and John Stonestreet)

 

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