How Innovative Digital Payments Solutions Can Help Reboot Your Business post-COVID-19
The impact of COVID-19 is much more than that meets the eye. Apart from the millions of precious lives lost, the global pandemic has led to vast and unprecedented challenges for global economies be it immediate, short-term, or long-term.
While global trade is witnessing a steep decline, the impact of lockdown goes deep down to shrinking personal consumption. From disrupted income streams to lack of access to finances in developing and under-developed countries, payment services have a notable role to play in meeting the challenges of recent times.
In this article, we’ll discuss the role, digital money transfer or digital payments can play to empower people and businesses with seamless, secure, quick, and contactless transactions in a post-pandemic world. Also, how innovative digital payment solutions can help reboot your business in the post-pandemic world.
‘Contactless’ Digital Payments is a necessity in the Post-pandemic Scenario
With social distancing proving to be a success in limiting the transmission of the virus, and early reports by W.H.O discouraging the use of currency notes, contactless transactions by QR code, wearables, curbside pickups, and SMS link-based payments are fast becoming the most preferred ways for businesses.
While this has significantly led to an upward trend for Digital Payments, what needs to be rapidly evolved in this post-pandemic era is the digital payments ecosystem. Also, highly encouraging is an increase in issuance and usage of virtual ‘payment’ card.
Increased Online Presence of Small and Medium Businesses
The unprecedented lockdown of cities and nations across the globe and strict social distancing norms has brought forth the importance of having an online presence for small and medium businesses. Taking into account the prevailing situation, that is the only way to reach out to your customers who are staying indoors in the safety of their homes. And when you talk online business, you cannot ignore the importance of secure digital payment gateways to facilitate seamless transactions.
The Surge in eCommerce Purchases and Cashless Transaction
With the virus threat confining people to their homes, eCommerce is one of the few sectors that have boomed during the current pandemic. Studies have shown that an increasing number of people are resorting to online shopping rather than visiting brick-and-mortar retail shops.
Fig. 68% of consumers ready to buy online until a vaccine or treatment is available (Salesforce Research)
There has been a global trend in the increase of eCommerce sales mainly for groceries and health products since the lockdown using secure fintech mediums like in-app purchases, pay-by-link, etc. In the United Kingdom, online retail order volumes for certain products have risen by over 200% since the COVID-19 outbreak. Moreover, there is a surge in the number of retail outlets opting for Retail POS solution at checkout, thus instilling confidence in back-to-store customers.
Varying Digital Payment Methods by Country
Although there is a common global trend on the influx of digital payment post the COVID-19 scenario, the methods opted for digital transactions are found to be divergent across countries. For instance, studies show that UK digital buyers preferred debit cards when shopping online during the coronavirus outbreak, while shoppers in Italy opted for digital wallets like PayPal. At the same time, more than two-thirds of online shoppers in Canada chose to pay by credit card.
Upward Trend for Tokenized Mobile and Digital Wallets
The current pandemic has rightfully made customers wary of public payment terminals in fear of being infected by the virus. This is one of the many reasons why token-based digital wallets like Alipay, Amazon Pay, PayPal, Apple Pay, and Google Pay are seeing rapid growth in its use as they allow a payment to be made without entering a PIN or even the card making any contact to a terminal.
Experts predict a rise in the use of token-based wallets against physical payments cards, besides introducing peer-to-peer contactless payments, even between different types of wallets soon. Is your business accepting digital wallets for transactions?
Digital Innovation to Get a Boost with Shifting Customer Behavior
Digital banking services are witnessing a boost in demand post the pandemic due to an increase in cashless transactions, with fewer people venturing out due to imposed COVID-19 restrictions. This may also drive many traditional payment providers and legacy banks to fast-track their digital innovation efforts and collaborate to bring digital payment solutions to the marketplace.
According to the 451 Research report, the current COVID-19 situation and the high-risk of the coronavirus spread threat has seen the ‘largest and most aggressive period of contactless card issuance in the US history’. Although, the United States has been using contactless cards since 2004, very few people were using it. However, it is now a high time people understand the need of the hour and opt for tap-to-pay and Mobile Point-of-Sale (mPOS) for making safer purchases. How Digital Payments Can Transform the way You Do Business
The world may soon go back to ‘normal’ in a few months or a year, but the emergence of the digital payment industry in its full glory will pave the way for a new era in the way business transactions take place henceforth.
- Digital payments systems to replace cash and checks
- Adopt digital currencies into universal payments solutions
- Support more merchants working remotely by building the requisite infrastructure
- Embrace cloud-based infrastructure, analytics, and automation to reimagine the future of digital payments
- Explore possibilities for peer-to-peer contactless transactions between different digital wallets
Over to You
The COVID-19 pandemic besides bringing unprecedented agony and loss to human lives has put at-risk businesses and severely hit economic growth across industries. Although the financial outlook of the Digital Payments sector is almost the same, experts believe that the stability of the Digital Payments industry and its immense innovation potential will play a crucial role to boot up the economy in the new normal.
If you are looking to reboot your Digital Payments product line to benefit the current global scenario, our team of Fintech experts at Azilen can help you explore the gaps and build innovative Digital Payment solutions for the future. Get in touch with us to schedule a high-level discussion of your ideas with our Fintech product experts or write to us at firstname.lastname@example.org. We’ll get back to you within 1 business day.
Stay Safe. Stay Secure.