The crisis caused by the coronavirus has meant a before and after at all levels for companies. From flexible hours, suspension of activity and working from home, to the increase in online payments and the decline of cash payments. Perhaps the COVID-19 has become the perfect boost for businesses to take the step towards the integration of online payment methods.
According to Finextra, the lockdown has led to a drop in ATM withdrawals of over 60%, while the use of credit and debit cards has soared in open establishments. As a result of the situation generated by the global pandemic, users have shown a clear commitment to online payments.
What are the most commonly used online payments during the COVID-19 crisis?
Technologies in the banking system and the fintech sector have increased their use and improved response times for users. The main behaviours reflected during coronavirus crisis in the financial sector have been:
- The increase in the use of unusual applications, such as those that support the management of ICO (Official Credit Institute) credits, neglected so far by most institutions, since it is not very common to use them.
- The Bizum payment system experienced a growth of more than 25% during the coronavirus. This payment system allows you to send and receive money through your bank's App, reaching the recipient's account in less than 5 seconds.
- Mobile payments. Nowadays, there are many applications that allow you to make mobile payments without requiring any kind of contact. To make mobile payments possible, both the mobile phone and the shop need to have technology that allows information to be exchanged by proximity.
- Virtual POS. It allows eCommerce to accept payments from consumers via credit or debit cards and it has many advantages, both for users and for merchants: it accepts payments with a large number of cards, the risk of fraud or non-payment is much lower, the activity is entirely online, etc.
- Payments from the computer. It was best not to make payments with the card beforehand, but after receiving the purchase. There are many people who have chosen to pay from their computers.
Some payment methods such as Bizum started out as instant cost-sharing systems. However, during the pandemic, its use has increased and many shops have enabled it on their website, allowing payment in online shops.
How can eCommerce cope with the new normal?
At PayXpert, we have the perfect payment gateway to integrate the payment methods preferred by your customers and successfully respond to the new situation caused by COVID-19. It is a global, modern solution that can operate with all types of currencies. We have a team of consultants helping businesses in everything they need and we have the most advanced technology:
- We comply with all industry standards.
- We have a real-time control platform.
- We have a wide variety of payment methods to choose from, tailored to your customers' favourite ways.
- It allows tokenization with adapted systems and the integration process is easy and reliable.
Do you dare to take the leap?
The growth of online payments during the pandemic
The coronavirus crisis has accelerated the reduction in cash payments because, among other things, the World Health Organization (WHO) has stated that "the use of credit cards to pay can help reduce the risk of transmission, as coins and banknotes constantly change hands." Digital banking is here to stay, so more and more businesses are considering integrating payment gateways into their systems. This way, they improve their capabilities to assess the impact and control of the business, as well as its applications, infrastructures, and user experiences.
Online payment methods have helped to keep people at home in times of coronavirus. In fact, banks made their message clear after the state of emergency was declared: "Operate as much as possible through digital channels, such as online banking, mobile phone or telephone, or the bank's own ATM network", as Euribor has pointed out. The WHO's recommendations have been:
- Reduce cash payments. In fact, public transport was one of the sectors where the use of cash payment was limited.
- Preference for card payments, especially in supermarkets and other establishments.
E-commerce has become an ideal means of prevention against the spread of COVID-19. Companies are making more online payments than before the coronavirus crisis.
Key eCommerce conclusions during COVID-19
E-commerce sales have grown by more than 50% since the state of emergency was declared in March, with the most consumed sectors being sports, furniture, pharmacy and gardening. Thus, eCommerce sites have been forced to take measures that make it easier for users to make purchases, which requires greater investment in marketing, offers, new payment methods and shipping costs, among other things.
During these months, we have seen that the fear of buying online has been demolished and replaced by fear of contagion, in such a way that it has changed the habits of consumers from different countries around the world. Some studies show that "in 11 out of 12 of the markets analysed, consumers are buying more products online than in shops. In particular, the most notable increase has been in Vietnam with 57%, followed by India (55%), China (50%), and Italy (31%)".
Putting on masks and gloves if there is no choice but to leave your house and washing your hands thoroughly when you return are the basic measures to prevent the spread of coronavirus. In just over 2 months we have internalised very well how to reduce exposure to the virus. We apply these measures when going for a walk, shopping or throwing away trash. However, what do we do when it comes to shopping? The most hygienic and convenient way is to use online payment methods, credit cards or online shopping.
How do you pay without touching money? Are you wondering? Which payment options are the most suitable for your business? Don't be left wondering and tell us what you're thinking.