The Future of Shopping and Payments in a Post-Pandemic World
Summary
A merchant information sheet titled The Future of Shopping and Payments in a Post-Pandemic World, which says businesses will change the way they accept payment due to COVID-19. It summarizes shopping trends from January to April 2020 by category, citing a SpendTrend special report dated April 23, 2020, with clothing, entertainment and travel among the sectors under heavy pressure. It then lists nine pandemic and post-pandemic payment trends, including reduced use of cash, contactless payments, curbside payments, online EBT, SMS payments and voice purchasing, and cites a 40% jump in contactless payments reported by Mastercard. The sheet concludes that payment acceptance options may be permanently altered and closes with a list of sources and a disclaimer naming First Data Merchant Services, LLC.
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“The Future of Shopping and Payments in a Post-Pandemic World.”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/smbliq-b-030-the-future-of-shopping-and-payments-in-a-post-pandemic-wo-8df7441784/
, SHA-256 e4add66c45f1f6dd880fe31a7c4b15446cec848d6b35c5885cacddbfc7ebff9c.Full text
The Future
of Shopping and Payments
in a Post-Pandemic World
Due to COVID-19, businesses around the world will
change the way they accept payment — for the health
of their workers as well as their customers.
Shopping Trends:
January – April, 2020
Year-over-year monthly spending has decreased significantly,
with the greatest decreases coming in March and April.
Food, Beverage
and Grocery
Growth decreased, but overall
downside is limited. Consumers
are making fewer shopping trips
and working through supply
stockpiles. Average ticket size
remains elevated.
Dining Out and
Restaurants
Growth declines stabilized in
April as curbside pickup took hold.
The fast food segment remains
the brightest spot, although sales
growth moved into negative
territory in March.
Gas Stations
Demand remains low as mobility
is limited, but the trend seems to
be leveling off.
Clothing
This sector is among the
hardest hit due to store closures
and decreased desire and need
for new clothing.
Entertainment
and Leisure
While social distancing and
lockdowns have hit this category
very hard, we are seeing some
bottoming at very low levels.
Travel
It’s no surprise that this sector
remains under heavy pressure.
Given the need for continued social
distancing, this sector may be slow
to rebound.
Source: SpendTrend Special Report: Update | Coronavirus impact on Consumer Spending, April 23, 2020
The probability of coronavirus transmission through
banknotes and coins is low compared with other
frequently touched objects, but consumer anxiety about
physical forms of currency could speed up the trend towards
cashless, touchless payments.
governing.com/now/ The-Future-of-Cash-Transactions-in-Question-Amid-COVID-19.html
Scientific evidence suggests the probability of coronavirus
22 %
transmission Social distancing
through banknotes
patterns,
compared with other frequently
andhas affected
coins
andobjects,
touched a TransUnion
consumer shopping
is low
survey found that
but consumer
22% of
anxiety about physical forms of Americans
currency could said
speed they’ve been targeted
up the
by digital
trend towards cashless, touchless fraud related to COVID-19.
payments.
techrepublic.com/article/coronavirus-related-digital-fraud-22-of-americans-targeted
governing.com/now/ The-Future-of-Cash-Transactions-in-Question-Amid-COVID-19.html
Experts believe the coronavirus can remain viable as
many as five days on plastic and four days on paper,
which raises issues about the use of credit cards, terminals, cash
and receipts.
governing.com/now/ The-Future-of-Cash-Transactions-in-Question-Amid-COVID-19.html
Pandemic & Post-Pandemic
9 Payment Trends
Business can help themselves and their customers by embracing
omnichannel commerce and omnichannel payment solutions.*
1. Reduced Use of Cash
Since the start of 2020, cash use and ATM transactions have
declined significantly. Fearing that cash can transmit germs,
consumers are choosing to pay via other electronic methods.
2. Contactless Payments
Mobile payment via contactless terminals is increasing due to
public health concerns of touching cash, cards and keypads.
Mastercard saw a 40% jump in contactless payments, including
tap-to-pay and mobile pay, as the pandemic worsened.
3. Curbside & Delivery Payments
Wireless or mobile POS card readers can accept contactless, chip,
and swipe payments, allowing customers to pay in a touchless
manner during curbside pickup or upon delivery.
4. Virtual Terminal Payments
Payments can be processed over the phone, via mail, or in person
via a virtual terminal. This is a web page in your internet browser
that allows merchants to manually enter the sales amount and
credit card information to process transactions anywhere on any
device.
5. Electronic Benefit Transfer (EBT) Payments
Online EBT allows merchants to accept payments from consumers
who participate in the SNAP federal assistance program. Using
“PIN on Glass” technology, consumers can select approved items
and make purchases online.
6. SMS Payments
Short Messaging Service (SMS) payments allow purchasers to
pay for goods or services via direct premium text messages, via a
website and a code that is transmitted as a text, or by entering their
mobile number directly on a web page and texting the code back.
7. Peer-to-Peer Payment
P2P payments can be used for sharing costs between friends,
repaying someone, or even paying the rent. Funds are transferred
quickly through an online or mobile app using each individual’s bank
account or credit card.
8. In-Car Payment Systems
Equipping vehicle dashboards with in-car payment technology will
allow drivers to pay for gas, parking spaces and eventually groceries
and consumer goods from behind the wheel.
9. Voice Purchasing Through Alexa
Amazon Pay for Alexa Skills allows Alexa users to pay for goods
and services using payment information stored in their Amazon
accounts. Users make purchases, re-order items, check order
status or donate to their favorite charities — all by voice.
Conclusion
COVID-19 is changing the way businesses accept payments and the ways in which
consumers purchase goods and services. While sales will eventually rebound,
payment acceptance options may be permanently altered. Once consumers
become used to the convenience of new payment methods, these changes may
become the new normal.
*Sources:
yahoo.com/news/coronavirus-covid-19-marks-the-real-beginning-of-the-end-of-cash-104855087.html
cnbc.com/2020/04/29/mastercard-sees-40percent-jump-in-contactless-payments-due-to-coronavirus.html
blog.clover.com/crisis-support/covid-19-effects-and-impacts-in-the-u-s-fiserv
firstdata.com/images/fd-standalone-pages/covid-19/pdf/COVID-19_GBS_Online_EBT_Sales_Sheet.pdf
mobiletransaction.org/how-do-sms-payments-work-for-users
nerdwallet.com/blog/banking/peer-to-peer-p2p-money-transfers
nerdwallet.com/blog/credit-cards/credit-cards-evolve-beyond-mobile-wallet
pay.amazon.com/how-it-works/voice
First Data Merchant Services, LLC is a registered ISO of Wells Fargo Bank, N.A., Concord, CA;
Deutsche Bank AG, New York, NY; Compass Bank, Birmingham, AL; and MetaBank, Sioux Falls, SD.
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