The Impact of COVID-19 on Digital Payments
What do we talk about 2020? We are all hit by the pandemic and stepped into a new normal. Most businesses were affected by it and of course, at a point, most of them happen to shift to the digital space. Here we will be discussing on the impact on digital payments.
Businesses have adopted and appreciated the digital world. They’ve embraced online payments, online shopping, and yeah, welcome to the world of digital!
In the era of rising fintech, digital payments or online payments have played a crucial role. From small businesses to big giants, everyone took part in the new revolution. We saw a lot of first-time digital users joining digital platforms. The previously traditional banks and financial institutions have also come forward to embrace digital payments.
“Over 50 percent of this digital adoption is coming from Tier 2 & 3 cities today, which indicates that this is not just an urban phenomenon.”
Further to digital payments, there’s been a high boost in demand for broadband internet services across the globe. Do you see it? The rise in digital payments will obviously fuel the rise in the usage of the internet.
What’s in Demand?
The novel coronavirus crisis has shattered businesses across the globe. From start-ups to big corporations are facing challenging and well, industries are feeling the pinch of this pandemic.
No more physical cash or currency note usage. People shifted to contactless card transactions, digital wallets, and online banking. Not only in metros but also in smaller towns, they’ve adopted making payments online. Even loans or clearing debts, everything is through a smartphone.
Cashless payments are easy. They are just a tap away from completing the transactions. They are secure, easy, and instant. Users don’t need to worry about cards or to swipe them against any machines.
Source: Capgemini
This trend became even more popular after the World Health Organization (WHO) warned about the spreading of the COVID-19 virus through banknotes. PayPal and other pioneering e-wallets enabled consumers to make e-commerce purchases. In fact, the digital trend will continue to grow, according to a report by Facebook and Bain & Company. Here is a report on the increased usage of social media, video streaming, and instant messaging:
Source: Facebook and Bain & Company, April 2020
The Digital Future
Eventually, we might only discover digital payments. Contactless payments will be in high demand and card swiping or inserting pins will become ultimate payment rules. Whatever, they are going to be more secure than ever and this is expected to grow by every second.
Payment players, the digital economy will eventually grow and scale-up in the upcoming years. We will see government and private initiatives to strengthen the current digital revolution.