The worldwide coronavirus (COVID-19) pandemic has encouraged consumers to look for contactless payment options. According to a PYMNTS report, along with this trend arrives an increase in donations to charities and an uptick in comfort in terms of peer-to-peer (P2P) payment platforms.
Silvana Hernandez, who is the senior vice president of digital payments at Mastercard, also informed PYMNTS that although there wasn’t a way to prepare for the pandemic, there were nonetheless existing payments infrastructure in place to support consumers.
“Since the beginning of COVID-19, we have been seeing P2P services and platforms growing in terms of adoption and usage, and I think it’s mainly because of two factors,” she added.
Hernandez also noted the significance of how consumers have been viewing payments being made in cash. The transmissions of COVID-19, in the mind of some consumers, can be attributed to the handling of cash.
Another reason for the decrease in cash payments is the fact that consumers are simply not leaving their homes due to social distancing measures and to protect themselves from COVID-19. Of course, this led to a lack of face-to-face interactions. Hernandez added how many individuals now shop, work, and attend school through digital means as well.
“Everything is moving to digital, including the way we interact with each other — and also the way we pay each other,” she said.
In terms of charitable contributions, they also play a role in increasing the uses of P2P services, according to Hernandez. Participating in either donations or support initiatives among individuals who may be facing challenging times themselves contribute to the use of P2P.
Alongside this trend is the transition to technological innovations. It is expected that individuals will always find ways to support, interact, and connect with each other through new ways of utilizing P2P services.
Merchant Broker is here to provide support to businesses through innovative payment processing solutions amid the COVID-19 pandemic and beyond. Finding the best-suited solutions may be a challenge; especially in a shifting payments ecosystem, however, experts at Merchant Broker are ready to work closely with stakeholders in order to help them meet their revenue goals, increase their profit margins, and improve customer retention rates.
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