The year 2020 has seen a boom in the online payment industry. As millions of people no longer have to stay home because of movement restrictions, there also has been a surge of contactless payments. However, the payment infrastructure in many places is still lacking, so most of the people in regions like these shall still be using cash as their preferred payment method.
Advanced payment solutions
Advanced payment solutions are commonly being used by those who live in areas that have the infrastructure support. Though there is the boom in online payment methods and contactless payment transactions, cash will still remain the preferred payment method in several countries.
Online payments
The boom in online payments was due to the health risk that brought about lockdown rules. However, this boom was for selected industries like that of grocery stores. Other industries such as that of airlines suffered from the pandemic, bringing about severe economic distress to several businesses. For such industries, their online payments stopped all together as their companies had to shut down temporarily. There are some businesses that did not just have a temporary closure, but were forced to close their doors forever.
Payment methods
The reality that struck millions of people in the world is that being online was essential and contactless payment terminals work to avoid touching surfaces that might have the virus. Since it became necessary to shop online for many and to use contactless payment terminals, using such payment methods will remain to be used and even become a habit after the crisis ends.
Adoption of payment methods
The adoption of online payment methods and contactless payments has accelerated in some industries during the pandemic. There are governments that endorse the use of these payment methods and will continue to do so even during post-pandemic times.
Cost cutting
There are people who prefer these advanced payment solutions due to the convenience. Merchants also prefer online payments because it is far cheaper to integrate a virtual terminal in their website. Retailers also prefer contactless terminals because it is cost cutting.
Integration of payment terminals
The recent years show that certain regions have been slow to integrate the use of contactless payment terminals in their retail stores and for services such as that of mass transit. People have been hesitant to make the change because they are comfortable using traditional payment methods.
Increase in contactless payment transactions
Studies have shown that contactless terminal payment transactions have nearly doubled during the first quarter of the year 2020. The increase in payment transactions using contactless terminals are for essential stores like drug stores and groceries. There was also a recent study conducted by a popular credit card company of which the results showed that out of ten of the respondents, eight are currently using contactless payment terminals.
A cleaner and safer way to pay
Making a contactless payment transaction is said to be the cleaner and safer way to pay. There is the speed of being able to checkout quickly plus there is much more control when it comes to physical proximity, especially since there is a need for social distancing.