The recent event of the health crisis has brought about a shifting of society from using cash to using online payments. In certain countries, consumers have already been using electronic means to make payment transactions. But, because of the pandemic, due to many areas issuing stay-in-shelter orders, it necessitated the use of online shopping for goods. Services like movie subscriptions also became popular because of the need for entertainment.
The fear of the transmission of the virus also accelerated the shift to alternative payment methods like paxum.com. There are those who are reliant on accepting cash but times have greatly changed. There is a gradual shift from cash as a payment method to that of debit cards and credit cards. A lot of customers prefer to use their smartphones to swipe or tap to complete a payment transaction.
During the first half of 2020, there were signboards in many establishments that indicate their preference for non-cash transactions. One of the reasons why is because there is that concern for safety because the virus might be able to contaminate someone when paper bills and coins are used. There are some who no longer keep that sign up as they have again accepted cash payments, but there are more establishments that have now integrated a payment terminal for facilitating cashless payment transactions.
Digital payment infrastructure
There are millions of people who prefer to accept cash payments. That is because it is physical in form and that is the payment method that we are accustomed to using. However, the gradual move away from cash transactions not only occurred because of the pandemic but because of the efficiency of digital payment methods. There are governments such as that of Sweden that supported the creation of the payment infrastructure for contactless payment terminals and online payments to be accessible to the citizenry.
Will cash no longer be used?
In the near future, online commerce might not be able to banish the use of cash completely. There are some who are in businesses that prefer the traditional payment method of cash in order to avoid paying for credit card transaction fees. However, there is still the flow of the money that goes strongly towards a digital direction. No longer a trend, making an online payment provided greater convenience to consumers. For those in the lower-income bracket who do not have financial inclusion, their labor is typically compensated for in cash. It is not necessarily the lack of trust in the online payment system but the inability to do so for lack of payment infrastructure or a smartphone that has the capacity for being used to make an online payment.
Increase in online payment users
The health crisis of 2020 was able to condense the estimated time frame for online payments to become more in use, as instead of taking years, the boom happened within months. The peer-to-peer apps such as that of a reliable payment provider had experienced an increase in the number of new accounts. There are also more point-of-sale terminals for the various facilities and establishments, making it much easier for a customer to make a contactless payment transaction.