Spain\u2019s tourism sector makes up approximately 12% of its GDP and 13% of its employment[[As of the end of 2019]], and a steep decline in this market will heavily impact the country\u2019s payments sector, says GlobalData, a leading data and analytics company.<\/p>\n
Ravi Sharma, Banking and Payments Analyst at GlobalData, comments: \u201cAccording to GlobalData\u2019s 2019 Banking and Payments Survey, travel and accommodation and food and drink accounted for almost 43% of the debit card transaction value. Payment companies will lose out on this significant chunk of business if the COVID-19 outbreak is not contained at the earliest possible opportunity.\u201d<\/em><\/p>\n Spain is also traditionally a cash-dominated market, as it accounts for over 60% of total transaction volume. This will almost certainly change, as banks and merchants are urging customers to use non-cash payment methods to help contain the spread of the virus. The national railway operator, Renfe Operadora, stopped accepting cash payments from 27th March 2020.<\/p>\n GlobalData forecasts total transaction value in Spain to rise at a compound annual growth rate (CAGR) of 2.2% between 2019 and 2023, which was revised down from a CAGR of 5.4% before the pandemic. Forecasts for total cash transaction value has gone from 1.2% CAGR to a negative growth of -2% CAGR up to 2023, as consumers move to digital payments.<\/p>\n Sharma continued: \u201cConsumers are likely to switch from low-value cash payments to digital payment tools such as contactless cards or mobile wallets. The increased contactless payment limit will further drive usage. This is likely to have a long-term impact on its payment industry, as consumers begun to learn new behaviors they have been reluctant to adopt previously.\u201d<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Spain\u2019s tourism sector makes up approximately 12% of its GDP and 13% of its employment, and a steep decline in this market will heavily impact the country\u2019s payments sector, says GlobalData, a leading data and analytics company.<\/p>\n","protected":false},"author":20,"featured_media":91006,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1470],"tags":[1671,1657,1437,2103],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/91008"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=91008"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/91008\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/91006"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=91008"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=91008"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=91008"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}