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.
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:
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.
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:
Do you dare to take the leap?
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:
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.
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.