Can the use of cash have the potential to spread the Coronavirus? This question has rarely been talked about in the news, however, many governments, leaders and finance authorities in the digital payments industry are wondering how covid-19 might impact the use of cash. Extreme precautionary measures have already been taken by several countries to limit the circulation of bank notes. Physical currency can indeed be a significant way for the transmission of this highly infectious disease. The Covid-19 pandemic has affected all the markets and the industries globally. However, in this world of digitalization, the flow of money cannot be stopped by the Coronavirus outbreak or lockdown. Hence, the adoption of digital payment is increasing at a rapid pace.
Due to the practice of social distancing, governments and regulatory bodies have started discouraging the use of liquid money, as such leaving people with no other choice but to switch to digital payment options. During this period of curfew and lockdown, the urgent need for essential products promotes digital payments as a swift and secure option. For instance, there has been a steep rise of 160% to 218% in the number of downloads in online grocery delivery apps such as Walmart Grocery and InstaCart. During this Coronavirus outbreak, we have witnessed a rise in E-commerce. People who are locked in their houses prefer to shop online. Even in a few countries where there is no complete lockdown, people tend to avoid visiting the stores. From groceries to household essentials, people prefer online shopping. Several retailers have also adopted e-Commerce technology to capitalize on this changing trend. Hence, as consumers are increasing the stock of food and other essential products, e-Commerce routes remain handy.
Furthermore, most of the bank branches are either closed or are working with minimum staff. As such, retailers and other vendors are having difficulties to deposit money into their bank accounts. As a result, switching to digital payment options to eliminate the risk of theft. Researchers say that approximately around 38% of customers are ready to embrace digital wallets or mobile-wallets in the age of smartphones. Another survey revealed that more than half of the payments in Germany are done through the use of a mobile phone compared before the corona crisis. Similarly, in the United Kingdom, the use of ATM has fallen by about 60% compared to 2019. Digital transactions provide a more secure way to pay and receive money as well as they are free from any contact or physical interaction.
Covid-19 is already reinforcing existing trends towards increased digitalization of payments. For instance, in France, the Louvre museum in Paris has recently banned cash transaction due to Covid-109 fears. Nevertheless, the European Countries are determined to be at the forefront of digital currencies. Central Banks such as the Bank of England, the European Central Bank and many other European Banks have started to access the feasibility of digital central bank currencies. This will eventually perform all the functions of banknotes and coins. People will be able to use this to make both payments and savings.
The adoption rate of digital payment was slow until last year. This covid-19 pandemic has helped in increasing the adoption of digital payment solutions significantly and are expecting that value per transaction and total value of online transactions will increase through various digital payment channels.
Partnering with NanoBNK
NanoBNK, our Fintech company is offering its services and solutions to help during this Covid-19 Pandemic in delivering Digital Transformation and omnichannel presence through its Digital Banking solutions: Internet Banking, Mobile Banking, Bill Payment, Agency Banking and Kiosk Banking.