Q3 2021 Financial Crime Report: Consumers Go Cashless

Based on over 1.5 billion exclusive transactions, the report also includes insights into what post-pandemic commerce will look like by analyzing Australian and New Zealand travel markets, shares information on consumer spending habits, the top fraud scams to watch for, and more.

Feedzai Financial Crime Report: Welcome to the Cashless Era

Consumers’ rapid shift toward digital commerce and away from cash was driven in large part by pandemic lockdowns. This massive shift to digital ushered in a new era of cashlessness as a large share of consumers got their first taste of the digital banking ecosystem’s convenience and accessibility. 

The Q3 2021 Financial Crime Report found:

Cash Transactions Dropped by 48%

Cash use dropped by 48% from Q2 2020 to Q2 2021 (although cash usage is up slightly from the previous quarter). What makes this shift notable is that consumers had fewer opportunities to use cash in Q2 2020 due to strict lockdowns and social distancing requirements. However, in Q2 2021, when consumers had more opportunities to spend cash, they still decided to embrace digital spending options.

Debit Card Transactions Rose 26%

While consumers moved away from cash, they have clearly embraced its nearest digital banking alternative. Debit card transactions increased by 26% in Q2 2021 compared to Q2 2020.

P2P Payments Increased 89%

The rapid pace of smartphone adoption around the world has only contributed to the decline in cash – and other physical payment methods. Consumers are now comfortable using their phones as payment devices. Person-to-person (P2P) transactions surged 89% during Q2 2021. 

Australian & New Zealand Travel Rebounds

In addition to digital payment methods, the new Financial Crime Report offers a glimpse into post-pandemic consumer behavior. Looking at Australia and New Zealand, two nations that experienced significant moments of reprieve from the pandemic, we get a glimpse of what post-pandemic consumer behavior could look like.

Airline spending increased 680%

The travel industry was one of the hardest-hit by the global pandemic. But both the Australian and New Zealand markets offer a glimpse of what lies ahead for future travel as pandemic restrictions ease. The report found air travel spending increased by 680% in Q2 2021 – which could provide a bellwether of post-pandemic activity.

Cruise spending up 449%

Cruise line spending is also on the rise in the Australian and New Zealand markets. The cruise line industry saw a 449% rise in spending, providing another indication of what post-pandemic life could look like.

Hotel Spending Surges 

Spending on hotels was also up in these markets in Q2 2021. The report found consumers increased their spending on hotel stays in Australian, New Zealand, and U.S. markets.

Top 5 Fraud Scams

Unfortunately, a rise in digital commerce and travel also opens the floodgates to more fraud attempts. In the digital payments landscape, fraudsters can more easily scale their operations. The five most common fraud attempts observed in Q2 2021 were:

1. Purchase Scams
2. Social Engineering Scams
3. Impersonation Scams
4. Account Takeover Fraud
5. Smishing Scams

Feedzai’s Q3 2021 Financial Crime Report further delves into how fraud trends are changing in the cashless era, how consumer payment preferences are evolving, the markets where fraud is increasing fastest, and tips for both banks and consumers to prevent fraud attacks. Download the report to learn what the payments landscape could look like once post-pandemic life settles in.

Want to learn more about the shift to cashless commerce? Download Feedzai’s Q3 2021 Financial Crime Report to gain detailed fraud and financial crime insights from over 1.5 billion global financial transactions.