Role of COVID-19 in Skyrocketing Online Payments Globally

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Role of COVID-19 in Skyrocketing Online Payments
Globally
The COVID-19 pandemic, single-handedly, has
affected the lives of every single human
directly. Which is why social distancing has
become the new normal for human lives to carry
on. While every industry and market has been hit
directly from the ongoing pandemic, the work
cannot be stopped. Because the extreme can lead
businesses and economies to collapse. To resolve
the uncertain damaging situations, some
diversions can sort your business problems
extensively.
For any business, Cash flow is the king in a
business and cannot be avoided at any cost. It
is the heart and soul of an organization to run.
Online payments will now help businesses to
resume their activities with physical distancing
and following social distancing as the basic
norm in COVID-19. The steep rise in the usage of
smartphones has also given rise to the downloads
and usage of digital payment options. A recent
report published by Statista has foretold that
sum of transactions through overall digital
medium will reach USD 4,769,370m by the end of
the year 2020 and later a YoY increase of over
15 is expected to be witnessed. The novel
Coronavirus will significantly act as a catalyst
in increasing its usage percentage multiple
folds.
Let us now understand how COVID-19 will actually
incline brands towards acceptance of
digital/online payments throughout the globe.
Coronavirus Outbreaks Impact on Industry and
Market The sudden outbreak of the Coronavirus
pandemic has brought the entire world to a
shocking uncertain standstill. The completely
ruptured demand and sudden halt has brought a
significant impact on the manufacturing sector as
a result of consumer
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behaviour. As almost one-third of the worlds
population is, right now, locked at home, their
behaviours have changed. Not just consumer
behaviour, but the sudden lockdown has also
compelled companies to either have a complete
shutdown or work from home (whichever is
possible) till the next possible situation to
bring life back to normal. As we are all aware
that the coronavirus is here to stay and neither
in the sight of the near future we will witness
its complete disappearance. The side-effects are
not limited to a list, but every business, every
sector, irrespective of any boundaries is
expected to witness the hard-hit. While many
startups and SMEs are expected to vanish,
economies are expected to go through a major
recession than what we are already experiencing
as first-hand experience of lockdown. But, in
this current scenario, it will be interesting to
see how the adoption rate of digital payments
will rise.
Factors Accelerating Digital Payments Solution
Acceptance Cash Will Significantly Lose its Value
With Coronavirus expected to stay on surfaces for
more than 9 hours, currencies are expected to be
a lethal carrier of the virus. Countries like the
USA, Canada amongst
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others have found their own way of dealing with
it. From the major foreign exchange being
reserved for more than 24 hours before
circulating it back into the economy to washing
currency notes in the laundry (Canadian Currency
is Plastic Based Paper), every country has
devised its own measures. But, Majorly every
economy is supporting online payments to help
suppress outbreak to some extent, even
minor. Also, with the ongoing situation, there
is a steep rise in the number of downloads for
online grocery stores with 160 to 218. Walmart
Grocery and Instacart download numbers indicate
the truth to the world. Moreso, just like any
other sector even banks are working with a
minimal amount of employees. Thus, retailers and
SMBs are finding it difficult to deposit cash.
Therefore, the shift to receive payments online
eradicates the chances of transmission or even
thefts. With the increasing use of smartphones,
more than 38 of consumers are preferring to opt
for an online invoice payment system globally.
Another study reveals that yet alone in Germany,
post the COVID-19 outbreak, the download
percentage has risen to fifty percent from 35
per cent. Such instances are seen worldwide and
followed in other countries as well. Accepting
Online payments are contactless payments and do
not need physical intervention, apart from being
secure and transparent. There are multiple
factors people opt for online transactions over
physical currency exchange.
Significant Increase in the Demand of E-Commerce
after the Outspread of Pandemic Being locked in
houses people are opting for online shopping.
Every E-commerce store that promises to deliver
in time with contactless delivery is preferred by
people. Even in countries with partial or no
lockdown people are avoiding going out for
shopping, rather staying in as a measure of
social distancing to break the chain of the
spread of the virus. Many retailers are more
actively working to serve their online clients
and others are trying to get their software
developed to follow.
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As a result of COVID-19, the practice to receive
payments online has gone up by 28 in march for
businesses in essential commodities. However,
many other items such as apparels, accessories,
gadgets, automobiles, etc have made their shift
to luxury goods and consumer behaviour has
changed towards them. Travel, tourism, and
hospitality industries are shaking and at a
complete halt because of travel bans across the
globe.
More Extensive Perspective The Coronavirus isnt
ending soon, we have already discussed this. And,
it will eventually affect the lifestyle of every
individual directly. There is a subsequent
increase in the numbers of transactions online.
But, it is important to understand here, that
currently only essential commodities are in
demand and purchasing power has certainly
dropped with a sudden shocking recession. But, as
soon as the life will get back to some extent of
normal, with the ongoing changed behaviours, it
is expected to witness the rise in the volume of
digital/online payments
What are enterprises expected to do? Till 2019,
the adoption of digital payment mediums was a
choice. But, with current situations in 2020,
the entire outlook towards digital payments has
changed. Consumers have inclined towards it
more, irrespective of the business type, sector,
or category. Accepting Online payments will soon
claim its throne over cash transactions.
Therefore businesses should prepare themselves
to completely digitize their invoicing and
payments process by setting up automated
solutions to send online invoices and receive
payments online with least human
intervention. Invoicing software will now play a
major role than ever to help businesses curb the
needs of digitization. While accepting the
technology will take time but, automation with
customized solutions can accelerate the entire
invoicing and payments process to help
businesses benefit from the overall process
efficiency.
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How can Invoicera help you make a
mark? Invoicera is an online invoicing and
payments solution empowering over 3 million
businesses worldwide since the last 16
years. Invoicera helps to automate and simplify
your invoicing and payments with more than 30
payment gateways. Apart from this you can also
get the access to expense management,
recurring/subscription billing, client/vendor
panels, time tracking, workflows, multi
companies, multilingual multi-currency support,
staff permissions, financial reporting
analysis, purchase order management,
sub-contractor billing and time management,
comprehensive reporting and APIs for 3rd party
integration. Invoicera also helps you to
integrate with your existing legacy system
customize the invoicing/billing process as per
your business process.
Just like you, we too want the Coronavirus
pandemic to end soon too. But, remember changed
human behaviour will change the entire purchasing
trends. Dont forget, some advice is advisories.
They should not be neglected. Get Free Software
trial Or Contact us