The pandemic had a large impact on how we go about our daily lives. One of the most evident effects was on how people choose to shop and pay.
Covid-19 restrictions meant that we had to think about getting groceries and all other essentials delivered to our doorstep. Moreover, minimizing physical interaction also encouraged buyers to think about payment methods alternative to the use of cash.
High time to shift to digital payments!
Although contactless, digital payments had been here all along, their true capability was severely underestimated. It was only after the places shut down and people were forced to buy online and pay via contactless ways at major stores like Target and elsewhere, that the world discovered how useful these can be!
Some Interesting Facts to Read About:
- During the days of pandemic, contactless and tap-to-pay transactions increased by 30% of the numbers in previous years.
- At least half of the buyers in the US have confessed that they prefer shopping at stores that offer contactless methods to pay.
- 41% of the population in America had added a contactless card to their mobile wallet in the past 10 to 12 months.
- At least 85% of the contactless payments done within the US are used to pay for groceries.
- Furthermore, the use of in-store mobile payments also increased by 29% over the last year.
Is The Change Fueled By Pandemic Going To Stay?
Safe to say that now the toughest days are behind us and many things seem to be coming back to “normal” day by day.
That brings us to an important question: “Was the inclination towards digital payments the need of the time or customers would stick to using this mode now onwards, a permanent good-bye to cash?”
Some big retailers like Starbucks had been accepting payments via mobile for a long time. To add to it, the pandemic triggered the use of contactless payments in gas stations, speedways, local stores, etc.
Some companies were quick to adopt this method if they had not implemented it beforehand. For example, The Vitamin Shoppe shifted to touchless payment and introduced technologies that would help the store provide digital receipts to customers. This sudden change was a necessity in order to survive during the days of pandemic.
Moreover, restaurants were quick to replace paper menus with QR codes so their clients did not have to touch any surface that they were not comfortable touching!
It is obvious that the changes were fueled by Covid-19 and the hesitation that it brought. However, the convenience and security that digital payments had then demonstrated to people all around the globe meant they are not going anywhere!
Half of the world did not take up this mode of payment in the most favorable of circumstances but soon discovered that e-payments, mobile wallets, and online transfers were capable of more than they had thought!
- Digital payments guaranteed quick money transfers.
- In most situations, they helped buyers avoid long queues.
- Mobile wallets were found to be more secure than carrying around cash.
- Online transfers guaranteed secure and quick international transactions between people living across borders.
- Customers were also satisfied to know that their funds would always be in reach thanks to mobile banking apps.
All these reasons account to why most analysts think that over the next 5 years, digital commerce transactions will continue to bloom and may expand up to 30% of its current use!
