Long-Lasting Impact of COVID-19 on Digital Payments

Long-Lasting Impact of COVID-19 on Digital Payments:

When we identified the COVID-19 pandemic as a trend accelerator in April, the growing use of contactless payments was. Now, a few months later, it’s becoming clear that 2020 is a tipping point for accepting digital payments in the United States.

The continuing need for public health at the till, along with the growing demand for easier ways to purchase cell phones, receive incentive tests, and make social donations, has had a significant impact on key digital payment segments such as mobile payments, digital wallets and. couples improve peer payouts (P2P). When the pandemic finally ends, the impact on payments and banking services will be lasting.

As a result, this accelerated shift in consumer payment behavior is likely to divert consumers away from traditional banking and financial services, ushering in a more dynamic business landscape. In response, established businesses need to quickly adapt to changing consumer behaviors and market realities, integrating their digital payment ecosystem in terms of infrastructure and services.

Accelerated adoption on all fronts

Before the advent of COVID-19, digital payments, particularly mobile payments, gradually increased in the United States. Despite the serious efforts of top platform owners and fintech players, the penetration rate of near-mobile payments among smartphone users in the United States was only 29% last year. According to eMarketer data, this compares well with China’s nearly ubiquitous penetration rate of 81% but outperforms other developed markets such as the UK (19%), France (16% and Germany (13%). Money) Payment Methods.

The pandemic has changed the way people think about their payment options. After the first home orders in March, hygiene issues around distributing cash or payment cards at the checkout counter and contact with keyboards at the supermarket quickly meant that many contactless shoppers had to pay. According to a recent survey by Forrester Research, retailers have reported a 69% increase in contactless transactions since January. With the added help of online ordering, digital payments have suddenly become a necessity for many.

According to a stats report released in June, nearly 50% of global shoppers use digital payments more than before the pandemic, and most plan to continue once the virus is under control. In the United States, nearly one in five respondents to a JD Power survey cited by eMarketer said they want to

use mobile payments to shop in stores because of COVID-19. Digital wallets such as Apple Pay and Google Pay, as well as EMV cards issued by major credit card companies², are the ones that benefit most from this change in behavior. As consumers changed, many fast food establishments and restaurants followed suit and encouraged the use of contactless payments.

In addition to contactless payments, three other factors have also contributed to the rapid acceptance of other forms of digital payment, although their specific contributions are more difficult to quantify:

The shift to online shopping, especially mobile and social commerce, has led to the exploration of digital payment services such as PayPal or Apple Pay. App Annie’s latest data shows that mobile commerce has exploded in the first six months of 2020, outpacing malls for the 2019 holiday season. It can be safely said that at least some mobile shoppers have started using payments. Furniture for a better experience. Safer shopping experience.

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