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The COVID-19 pandemic has touched every facet of the corporate world. Businesses have impacted like never before as human activities have minimized due to the lockdown-like situation.
This pandemic has changed our lifestyle in such a way that instead of offline shopping, we prefer online shopping, and instead of cash-based payments, we have switched to online payments. This is a big contributing factor to the rise in popularity of the digital payment apps.
These days, digital payments have gained ground across the world. People prefer a feature-rich digital wallet mobile app as a convenient and secure way for online payment. As per Statista Digital Market Outlook prediction, the mobile-based payment is expected to increase tenfold for 2021 with an average yearly growth rate of around 62%.
The coronavirus outbreak has increased the adaptation of digital payments significantly, and it is expected that the mobile-based payment volume will exceed $274 billion by the year 2021.
How COVID-19 Pandemic Influences Payment Industry
Ban on international travel, restricted movements, and lockdowns have made the world come to a standstill. Some experts believe that we may face a bigger recession than that of 2008 because of this pandemic. Almost all industry verticals have experienced a steep downfall (except on-demand services sector, which has recorded positive growth in the corona age), and the payment industry is one of them.
However, this impact has brought contactless and digital payments in the limelight. The digital payment apps or eWallet apps are the biggest beneficiaries of this trend. On one hand, these apps help the payment industry neutralize the impact of coronavirus pandemic, and on the other hand, they can keep the users away from direct contact or touching the currency notes.
Talking about the impact of COVID-19 on the payment industry, we will witness a big decline in the cross-border C2B (Consumers-to-Business) and B2B (Business to Business) transactions. This decline is largely attributed to the drop in travel and tourism revenue. Also, the rise of local eCommerce firms due to the lockdown contributed to decreasing cross-border transactions. Markets are volatile and insatiable across the world, which makes international securities riskier than ever.
Other victims of COVID-19 pandemic are offline retail payments, cash payments, and paper payment methods including the FinTech wallets. However, the popularity of contactless payments is at an all-time high globally. Let’s understand how digital payment apps can help us fight against the coronavirus outbreak.
Role of Digital Payment Solutions in Corona Age
The COVID-19 pandemic has brought radical changes in the ways we work and live. Our shopping and payment habits are also changed drastically in an attempt to curb the spread of this highly contagious disease. People tend to shop and make payments online while working from home. This trend results in a sudden increase in online payment processing.
These days, the survival of the COVID-19 virus on currency is a debatable topic. We may not find whether coronavirus can survive on the currency in a way similar to that on metal surfaces anytime soon. Therefore, people do not want to take any chances and have started embracing contactless payment methods. For example, people in Germany have made over 50% payments through the contactless method. This number was 35% before the advent of coronavirus.
In this corona age, digital payment methods are more secure because they are contactless. Therefore, people adopt these methods quickly worldwide. Net banking, UPI (Unified Payment Interface), and eWallets has remained the top modes of payments during the COVID-19 age.
Let’s go through the key benefits of the digital payment app along with its role in preventing the spread of coronavirus.
Read more : Comprehensive Guide on How to Build a Peer-to-Peer Payment App
Major Benefits of Digital Payment App in Corona Age
The digital payment solution integrates various online or digital channels. It enables users to make contactless transactions in a secure manner.
Some of the noteworthy benefits of a digital payment application are-
More Convenience and Accessibility
The digital payment app enables users to get rid of visiting an ATM. Also, it facilitates users to make online transactions securely. There is no need to remain physically present for payment, and customers just want it during this pandemic time. The eWallet or digital payment app enables people to make payments from anywhere and anytime.
Talking about accessibility, once customers integrate their bank account with eWallets, they can easily check the balance and transfer funds from one account to any other accounts anytime. It provides a 24/7 transfer facility in a swift and secure way.
Reduced Risk of Frauds
Digital or online transactions are highly secure because they are processed by robust payment gateways. The eWallet app development company follows the highest security protocols for online transactions including 128-bit SSL security, Burp Suite, and Biometric Authentication along with encryption to reduce the risk of online frauds.
During this turbulent time, when people prefer to stay at home, secure online payment can save their efforts and time significantly. The digital payment solution can help companies to offer this benefit to their customers.
Easy Tracking of Transactions
Another big benefit of a customized eWallet app is merchants and customers can track their transactions with ease. The transaction tracking feature gives easy access to payment information to users. It is necessary to remove any ambiguity and confusion while transacting online.
Improved Tracking of Expenses
The eWallet app has records of all the transaction-related information of users. It enables users to track and analyze their expenses on a weekly or monthly basis. In this corona age, when people have to maintain a balance between income and expenses, such an improved expense tracking feature is highly useful. What’s more, if users find it difficult to stay in their budget, they can set up the limits for particular expenses to prevent unnecessary spending.
Cost-saving and Rewards
The eWallet app development company can integrate a reward system in the eWallet app to promote saving. You can also offer loyalty bonuses and special offers to your eWallet app users for promoting your app. In a way, the digital payment app can save money for users while offering them perks.
The digital payment app is indeed a future of digital payments. It provides a swift and seamless way to transact online securely. In this COVID-19 age, when people want to make payments online, the digital payment app can give them a robust and reliable option. The eWallet app development company can also integrate features that enable users to transact in cryptocurrencies.
Here, you can get an answer to the question- What will be the cost of a customized eWallet app? It is fair to mention that a customized eWallet mobile app can increase your ROI by establishing omnichannel payment solutions and facilitate payments across different currencies including bitcoins.
The COVID-19 pandemic has a lasting impact on every industry sector and the payment industry is no exception! However, the pandemic has increased the usage of digital payment methods, and the eWallet app development company can build robust apps for payment companies or financial institutions.
Contactless and digitized payment methods can certainly help the community prevent the spread of coronavirus. It is better to switch to the digital payment app to attract more people and grow business while surpassing all odds.
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