Human lives everywhere have surely experienced a jolt with the recent pandemic outbreak. Lives, as well as livelihoods, are at stake. But amidst all negative growth in businesses everywhere, there is some exhilarating news hovering. As firms worldwide get together in their endeavor to business continuity, payments companies must show urgency in lending their skills and capabilities to their partners so that they can reinforce their place in the economy.
Data reveals that although the credit cards market leads the show, the growing demand for mobile banking solutions is likely to enter the fray. Surprisingly, the user base isn’t only the millennials or Gen Y. With the pandemic spreading its wings, contactless payments have become the new normal. As first-time users for contactless payments keep on piling, Banks, and institutions cannot lag. Now when we think of gearing up to take on the storm, we need to know the top things that are going to impact the growth of the payments industry in the forthcoming days.
1. All the top global markets for the payments industry have been badly affected by the disease. As a result, interest rates have plummeted; job markets have contracted to leave a staggering consumer spending. This is sure to affect the normal growth expected for the payments industry too.
2. The recent restrictions and a lot of trepidation have also led to a slump in all sectors, starting from manufacturing to entertainment and e-commerce. Tourism being vastly hit will surely have a negative effect on both the cards and forex markets. However, e-commerce is the one area that has added some fuel for all modes of digital payments.
3. As business houses struggle with reduced sales and inadequate revenues, payment companies could jump into partner with their clients to bring them back to the road to recovery. There can be various measures to retain liquidity, as waived digital payment fees and providing assistance in distributing government financial aids.
4. It is true that this pandemic has brought in changes at a much-accelerated pace especially for online payments. Data shows a steep decline in cash withdrawals as well as check deposits. With cash traditionalists shifting to alternative payment modes, it’s time that Banks, as well as Payment companies, equip their customers with an array of digital payments option.
5. There will be a surge in tokenized payments such as mobile wallets in an environment that is moving towards remote working. With an easy onboarding process, user-friendly UI, and most importantly two-way authentication, this is surely the go-to thing for most customers.
6. Going forward, payment companies should focus more on interoperability between smartphones and payment systems.
7. Lastly, payment companies should prepare themselves for increased fraudulent activities. With increasing disparities and economic uncertainties coupled with first-time users, there is always going to be a risk for losses owing to cyber fraud.
Digital journeys had already opened up horizons that we never experienced before. Now with the recent crisis, there’s a lot of re-evaluation that needs to be done. Mid-term and long-term strategies will help us get back to our feet slowly and steadily.