digital payment

How COVID-19 Have Increased Digital Payment Adoption Globally?

  • By Nikunj Gundaniya
  • 25-08-2020
  • Misc

COVID-19 has changed the ways of our lives. Measures of speed, convenience, and safety are being re-examined and redefined. All the countries across the globe have imposed social distancing norms to protect their citizens from the coronavirus pandemic. The need for social distancing has grown awareness about digital payment trends like PoS machines, debit cards or credit cards, and digital wallets.

As many countries imposed lockdowns, the majority of consumers turned towards digital payments to pay for their daily purchases. The countries across the world have started making efforts in the direction of adopting the cashless payment solutions for the safety of its citizens.

How are different countries leveraging digital payment solutions?
Many countries are experimenting with cashless payment solutions since the times of the COVID-19 pandemic. Governments of all the countries are also planning to implement the digital payment methods in their digital payments ecosystem.

A group of sixteen European banks has launched the European Payments Initiative (EPI). EPI will offer a seamless, competitive, and unified cashless payment solution to entire Europe. It will also create a unified pan-european payment solution for leveraging digital payment methods, offering a card for consumers and merchants across the country, a digital wallet, and peer to peer payments.

The COVID-19 outbreak had also prompted many South Asian households to embrace digital payments. The Development Bank of Singapore has reported sharp increases in digital-payment transactions, and home deliveries of food and groceries leaped dramatically in Thailand. A majority of urban consumers are already using e-wallets.

The Canadians have increasingly opted for digital payment solutions over cash and cheques, during the times of coronavirus outbreak. Businesses are also using cashless payment solutions for paying suppliers or accepting payments from their customers.

How will cashless payment solutions boost your revenues?
After discussing the digital payment trends of various countries, let us see how digital payments will ease your daily business transactions:

1. Helpful for maintaining social distancing
The COVID-19 has also accelerated the trend toward a cashless economy by increasing the need for social distancing and fear of handling paper money contaminated with COVID-19. During the lockdown, some retail businesses were limited to the takeout at the doorway and were conducted their business transactions, only by phone or online platforms, nearly every transaction was cashless.

2. Boosts the revenues for your business
After the COVID-19 pandemic, more and more people are adopting the cashless payment solutions. When consumers are paying online, they would likely spend more as the limited cash in their wallets will put an upper limit to their purchase compared to the flexibility on offer with mobile money solutions.

An efficient digital payment solution will also increase the speed of transactions. Speedier transactions will also allow you to get through more sales in a day, which will boost your profits.

3. Strengthen your transactions with the secure payment methods
The increased adoption of cashless payment solutions during the COVID-19 pandemic has also hiked digital payment fraud like phishing, malware attacks, malicious spamming, identity theft, etc.,

To provide a secure and hassle-free shopping experience to your customers, you can take various security measures like SSL, firewalls, multiple authentication methods, biometrics, etc., for securing payments of your digital wallet.

Summing up
Cashless payment solutions will facilitate the flow of finance in the economy by processing government payments, remittances, securities, and money market transactions. They will also serve the inter-bank payments, capital market transactions, and the numerous consumer transactions that would empower the commercial undertakings.

It’s too soon to predict the future of mobile money solutions by mobile app company. What’s clear, though, is that payments systems have entered into the new phase of digital innovation.

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