We already see a rapid change in behaviour as well as demands due to Covid-19. The acceptance of new, alternative payment methods increases as long as they support the overall recommendations and regulations from authority.
It is now clear that the pandemic will accelerate the pace of change in how the customer wants to execute their payments. Several reports support that the usual disruptors are under pressure. As always, there is a variation depending on geography, but the trend will, for sure, when we look back, be the start of “the new normal.”
Overall, we see that 38% of consumers now see contactless as a basic need or feature of payments, up from 30% a year ago. If we look at Northern Europe alone, the number is higher. Parallel to this, we also see a growing trend regarding apps and digital account-to-account payments (A2A). A paradox in this equation according to Mercury, is that credit cards sometimes carry more bacteria than the good old cash. Even so, the shift from card to alternative payments will probably go faster than the change from cash to card. The critical factor behind this spells Corona.
Now, don’t get me wrong…it is not black and white. Yet. Traditional payments are still out there. It is just a momentum in evolution that will make next generation come quicker.
There are two main changes that push evolution at this point—shift in behavior and how we travel. As you can imagine, people are more careful about being in public places. At the same time, a lot of people are working from home. If you put those two together, combined with regulations that keep us from traveling, a new reality starts to reveal. You see, we did not stop shopping, new habits made us buy more on-line.
Global eCommerce transactions were up 23 % in mid-March compared with average weekly volume. Now that’s what I call a sign. The overall transaction revenue needs more evaluation before we can share some reliable numbers.
All these fact and figures are not new for us in the fintech business. What is new is the speed and triggers. Powerful disruptors, such as credit or debit cards, are about to become disrupted. Instead, the customers embrace alternative methods since they are searching for solutions that support security, hygiene, convenience, and relevance.
So, what’s the take on all this? What is Westpay doing? To be very clear, we are prepared. With Swipe2Pay, as one example, we have given our customers a truly unique toolbox to meet new emerging demands for how people want to pay, today and tomorrow.
I have talked about it before, but our know-how, innovation, and people, combined with a quick time to market, make it possible for us to re-invent the tactics whenever the game changes. I am confident that we are ready for the new normal.
Bring it on.