The Changing Landscape of Banknotes: Trends and Outlook for the Global Market

The Global banknote market is projected to experience significant growth, with a CAGR of 6% from 2023 to 2028. The market is projected to increase by USD 3.8 billion over a period of next five years. Despite a little fall in growth rate from 5.5% in 2019 to 3.1% in 2020 due to customers holding back cash out of caution in case of any unanticipated occurrences, the worldwide banknote market remained positive even during the height of the virus outbreak.

Get The Free Sample Report:- Click Here

While consumer use of currency has decreased recently, demand for euro banknotes has steadily increased. There is a decrease in the number of cash transactions, according to surveys of payment behaviour in the eurozone. The demand for cash may have decreased as a result of the ongoing digitization of retail payments.

To encourage immediate spending, governments around the world are supporting digital payment methods. Chinese municipal governments, for instance, have started offering coupons through WeChat Pay. China's shift to a cash-lite society will enable it to support quarantines in order to stem the spread of disease as the economy starts to recover. As internet payments increase, there will be less demand for paper money.

Key Industry Highlights

Cashless Transactions
International payment markets, governments, and businesses are all significantly impacted by the digital transformation (DX) of the global economy. Since new market participants like sizable fintech and IT corporations have assumed a prominent position in domestic and global payment systems, this shift has also significantly challenged established payment systems.

Polymer Banknotes Gaining Acceptance
Polymer banknotes have grown in acceptance in recent years due to evidence that they are more resilient than paper money, have a smaller negative impact on the environment, and are less expensive to create and replace. There are 1,026 different banknote denominations in circulation as of February 2021, and 147 of them, or 15% of the market globally (up from 7% in 2019), are constructed of polymer substrates. The remaining denominations make use of hybrid or substrates made of cotton.

Cash Payment Trends
A study by the European Central Bank on the attitudes of consumers towards payments in the Euro Area (SPACE) stated that cash plays a significant role in daily transactions.

Impact of COVID-19 over Australia Banknotes
When the COVID-19 pandemic broke out in Australia, the number of banknotes in circulation dramatically surged. Commercial banks acquired over AUD 7.7 billion in AUD 50 and AUD 100 banknotes from the Reserve Bank between mid-March and the end of June 2020 to satisfy consumer demand.

Japan Ends Printing of “Yukichi Fukuzawa” Banknote
In comparison to other developed nations, Japan holds a relatively large amount of cash in circulation relative to its GDP. The ratio of cash to GDP in Japan is higher than 20%, while the United States has a ratio of 8% and the Euro area 11%. Starting from November 2022, Japan has completed the printing of the current JPY 10,000 banknote, which features a portrait of prominent educator Yukichi Fukuzawa.

Makreo Research has published a research on the banknote industry titled "Global Banknote Market Analysis and Forecast 2028: Segmentation by Region, Technology, and End-Use Industry”. The key contributing macroeconomic and sectoral factors are thoroughly examined in the paper, and production and circulation of banknotes are assessed in terms of volume and value. The paper compares the use of currency and digital payments since the use of digital money has increased, which has affected the need for banknotes. The report's sector and macroeconomic assessments, along with the optimum balance of qualitative and quantitative components, are all present.
 

Follow Us

LinkedIn | Instagram | Facebook 

Makreo Research and Consulting

Send us a query at info@makreo.com

Phone No: +91-9619699069