Impacts of COVID 19 could be clearly seen on the Cash transactions. During the nationwide lockdown, it was due to the inability to physically reach the place of purchase, and still, people have been preferring the Digital Payments over the Cash Payments and payments through any device such as POS or Swipe Machines. As per the Statista, 33 percent said that they used digital payments more than before. Further, 9% used digital payments only. Another obvious reason due to which the people have still been showing a preference for the Digital Payments is the spread of the virus that might happen due to the notes, coins, POS devices, etc.
Certain Research has examined that the viruses, bacteria, fungi, and parasites can survive on notes and coins (Angelakis et al, 2014). Thomas et al (2008) find that some
viruses, including human flu, can be there for hours or days on banknotes, particularly when diluted in mucus. Lopez et al (2011) find that non-porous surfaces can transmit viruses and bacteria more readily. The Covid-19 virus can also survive on surfaces. A study by van Doremalen et al (2020) finds that Covid-19 can persist for three hours in the air, 24 hours on cardboard, and even longer on other hard Surfaces. Source: https://www.bis.org/publ/bisbull03.pdf
Business Sectors with Negative Impact
However, the digital payments sector has also been affected like other sectors of the economy and the overall impact can be seen worldwide. Because of the lockdown, the government restriction after that, and the people following the precautions, the online payments have plunged in the sectors like Airlines, Travel & Tourism, Hospitality, Hotels, Entertainment, Non-essential e-commerce, Restaurants, Manufacturing, Auto, Retail, etc. The employments and income of various sections of the society have gone down which has further changed their purchasing pattern. Further, the major dive that has affected all the countries of the world is global imports and exports. The digital payments had come down for all the business models because of the stop in the cross-border movements.
Business Sectors with Positive Impact
This was the one side of the coin, on the other side the use of digital payments could be seen going up because of the increasing preference of the people to use various online payments methods in the purchase of online grocery stores, Educational Technology such as online classes, Recharges of phones and internet, Online Games, Online food delivery, online pharmacies, Utility Bills, OTT Subscriptions (telecom and media), etc.
The New Normal
There has been quite a serious effects on various businesses and platforms. However, at the same time, it has become very clear that the customers are inclining towards digital payments. On the top of it, the current scenario is that the COVID 19 affected sectors are currently full-on in the business continuity mode, which means they have been improvising and regaining the control with this new normal introduced by COVID 19. And it seems like this new normal is here to stay while the people are getting used to it and changing their lifestyles and buying patterns accordingly.
Another thing that is quite evident is that with the consumer choice of payments changing from cash to digital payments – providing the online payment method options is no longer a facility. It has become a need and a system that has to be installed in the business. In the Ecommerce, other online businesses, and also the offline stores the cash payments would replace the digital payments to a great extent. Any kind of business would need to compulsorily provide the online payment option like a Payment Gateway.
Well, when COVID 19 has helped people to start adapting with digital payments, there are other barriers that still remain such as the limited infrastructure at various places (rural areas), the charges levied on customers on various payment types, transactions responses, data security, etc. Thus, the overall use of the cash has not vanished but it will significantly go down in the coming times because of the increase in the infrastructure, facilities, and internet reach. In the end, it would become part of everyone’s lives.
Thus, the Payments and Fintech industry have been acting up, improvising, and working on the amount of damage that happened to the business, merchants, and customers due to COVID 19. They would be concentrating on the short term damage control but the innovations introduced would be the root for future growth and sustainability. The positive or negative impacts of this pandemic have just been a hike to the already speedily growing payments and fintech digital payments industry.
All in all –
For the businesses, adopting the Payment Gateway system would be highly advantageous due to the discussed after-effects of COVID 19 on online payments. PayKun Payment Gateway fulfills the needs and requirements of the business and provides a cushion to them as well as the customers when we talk about the online payments. Various payment products, services, and features are high in demand from the customer’s side. PayKun Payment Gateway provides safe and secured passage for the online payments ensuring the data and card security, which gives the customers confidence to the customers to make an online payment.
PayKun Payment Gateway can be integrated with the website or app or its payment links can be used too. The merchant can provide the customers with multiple payment methods such as UPIs, wallets, credit cards, debit cards, QR code, net banking, etc.
Sign up now with PayKun Payment Gateway and safeguard the health and interest of your customer, adapting to this new change and new normal!