This past summer saw a resurgence of travel throughout Europe, as national COVID vaccination programs began to increase. Travellers once again were able to resume their activities, albeit with some changes to their routines.
Rising limits
As cash is identified as a potential transmission vector for the virus, transactions are still encouraged to be completely using contactless payment systems. Consequently contactless payment limits have risen which in turn has created greater adoption amongst the public. Contactless payment systems such as Google Pay and Apple Pay are now commonplace, but need to link back to a bank or card provider. Typically the bank or card provider is in the traveller’s home country, ensuring an easy and flexible method for payments whilst travelling.
Europe goes cashless
Despite Europe being highly regarded for innovative payment solutions, there remains a marked difference in attitudes towards how to pay for goods and services. For example, in Norway the use of cash has significantly decreased to only 4% of all transactions. In Germany, cash remains the predominant method of payment. Spain has recently introduced a limit of €1,000 cash payments and withdrawals in an attempt to limit the black economy. In the Netherlands, Maestro remains the dominant card provider and is commonly used in supermarkets, metro systems etc. Unfortunately for visitors to the Netherlands this creates issues, as foreign non-Maestro cards are typically declined. In other European countries Maestro is almost non-existent. Consequently travellers struggle to pay at metro stations or some supermarkets, forcing them to revert to cash.
How much time does cash have left?
As the pandemic changes our daily lives and approaches to many things, the question is – how much time does cash have left? If we consider the costs of producing cash, the logistics and issues of its distribution and of course the illegal activities surrounding it plus its roll as a virus transmission factor, the days of cash are numbered. Festipay has been a leader in cashless payment solutions for several years, developing innovative turnkey solutions for festivals and major events.
Cashless payment solutions in 11 countries
Festipay, the most renowned event management service provider in Central Europe, is jointly owned by Cardnet Zrt. And Sziget Kulturális Menedzser Iroda Zrt.
The company provides a full range of cashless payment, accreditation, staff management, mobile application and mobile payment services. All related to event cards or integrated chip armbands, ticket- and access management for its customers. It was the first in Hungary and Romania to use an integrated entry-payment solution. With this visitors can use a wristband with a single radio frequency identification (RFID) chip for both entry and payment. In addition to festivals, Festipay is also a cashless payment service provider for spas and thermal baths in Budapest.
Festipay has so far provided cashless payment solutions in 11 countries. COVID-19 also used the time lost due to missed events to build new markets and test new products. After Romania, Belgium, Singapore, Georgia, Croatia, Switzerland, Slovenia, Italy and France, they also managed to break into the Luxembourg market.