5 ways COVID 19 has pushed us towards a cashless economy:
While money lost control even before Covid 19, the pandemic accelerated the global transition to a cashless economy. With the onset of winter and rising infection rates, the continents started with a negative second. Electronic payments have become the norm for daily trading and physical money will soon be a thing of the past.
Digital payments began long before the Covid 19 pandemic in India. According to Razorpay’s “The Era of Rising Fintech” report, digital payments in India grew 383% between 2018 and 2019. In 2020, Covid forced 19 institutions to reconsider joining a questionable surface area, including people. In May, digital transactions resumed growth, mainly due to fears of tainted cash transactions. It was convenient to use digital payments, which also promised greater transparency and less dependence on intermediaries and banking monopolies.
Capgemini’s research in 11 countries shows India is a leader in digital payments during the global pandemic and it’s interesting that seniors are at the forefront. The recent Mastercard study in the first quarter of 2020 reported over 40% growth in contactless transactions worldwide.
In the fiscal year, India’s digital payments market is valued at INR 1,638.49 billion, which is expected to increase to INR 4,322.63 billion by 2024.
According to Forbes, Amazon’s value has increased by $ 570 billion this year alone.
As global online payment platforms become significantly popular, e-commerce, including online shopping and video streaming, is paying for a small part of the consumer payment landscape. The growing pressure towards a cashless economy comes from many sectors and sectors of the economy that are not specifically related to cashless or contactless payments.
China had already disinfected and destroyed paper money in February 2020, although I suspect it was contaminated. Federal reserves of the United States and South Korea are transferred in cash to limit the spread of Covid 19.
5 ways COVID-19 could lead us to a cashless economy
1. Peer-to-peer payments
Due to the sudden crowds in most countries, people stayed home for weeks. Personal payment programs are useful for sending money to needy families and friends, paying rent to homeowners, and so on. All these transactions can be made via a smartphone or a cashless card to communicate with a point. In the car.
In a cashless business, remote payments can be made online and it is now possible to pay at unsecured points of sale or against a deposit. Mobile contactless payments can be made using the proximity method, which can store credit and debit cards in an electronic wallet.
2. Use of vending machines
Vending machines are widely used in hospitals, offices, airport terminals, etc. The convenience they offer has made Covid 19 more important. , vending machines offered users contactless experiences. People who want to limit the use of money for fear of pollution have quickly upgraded their hardware resources with automated machines. They offer options like cashless card readers, digital screens for instructions and demonstration videos on payment icons, credit card security, cleaning, and card use for purchases.
Studies have already shown that automated equipment companies with cashless readers have a dramatic increase in their total revenue. The pandemic has once again proved that car sale are an easy and cost-effective way to make contactless transactions.
3. Cashless transport systems
Cashless cards are not only cheaper, but they speed up boarding times and reduce delays for all passengers. Many cities around the world have adopted this easy payment system, and the pandemic has given other operators in cities around the world the opportunity to switch to a cashless system.
Transport for London (TfL) has been using it for years and has proven the success of this system. In March 2020, Metrolinx in Ontario, Canada, eliminated cash payment options to ensure staff safety. He urged passengers to download a mobile app to add cash and use tap-and-go card readers installed on buses to check tap cards.
Baguio City, Philippines, launched a cash collection system in July to reduce the growing number of transportation workers affected by Covid 19. Since then, the city has used cash, no contact, and continuous payment options via tap cards, NFC cards,s or QR codes.
4. Contactless payment on toll roads
Cashless tolls are a huge benefit for passengers because they can continue their journey without stopping at toll booths. This was particularly effective and beneficial during the pandemic, as it reduced the need for passengers to stop and communicate with paid staff, and contributed to the safety of all.
Transportation agencies around the world support cashless toll payments because they are safe, contactless, and time-saving.
In India, the number of cashless passes issued on national highways has increased significantly. In the United States, the state of Pennsylvania has no more money and the toll agency sends bills to people without passports.
5. Pay cash at filling stations
Covid 19 led to closures and fuel consumption initially declined, but as cities opened up, it increased again. However, with the fear of contaminated paper money, the need for cashless payments at filling stations arose.
Iran, which prefers cash, has also demanded cashless payments. In response to the demand for touchless touch services, 7-Eleven, the US supermarket, has launched a new loyalty program for fuel purchases in some US countries, enabling customers to reduce interaction and contact with areas and surfaces. save on the pump.
With Covid 19, the cash payment market seems to be shrinking rapidly, also driven by younger generations, who have broken and made electronic payments via smartphones or watches. Millennials have always been users of cashless payment services and are now accepted by other age groups as well. Mastercard research shows that there has been a significant shift towards contactless payments, especially in the Asia-Pacific region. COVID-19 changed the payment landscape and paved the way for future purchases. Consumers have seen and experienced the long-term benefits of a cleaner, safer and faster payment method and have also become more socially responsible. Since the virus is likely to have a lasting impact on life, the cramped society looks like the world is.