Germany-based desk research specialist yStats.com has released a new market report, entitled “Global Online Payment Methods 2020 And COVID-19’s Impact”. The report reveals that the pandemic outbreak has disrupted the payments market worldwide, accelerating the adoption of digital payment methods as consumers turn away from cash and make more purchases online.
Mobile and contactless payments rise during the coronavirus outbreak
Close to one-half of global consumers increased their usage of digital payment methods during the outbreak, according to a recent survey cited in the yStats.com report. The shift from cash to digital is especially pronounced in emerging markets. For example, in India, more than 50% of consumers paid more by digital wallet during the COVID-19 outbreak, and nearly as many increased their usage of online banking. Also consumers in advanced economies are changing their payment habits. Three-quarters of shoppers in Germany tried to avoid paying by cash amid the outbreak and wanted to have more contactless payment options. Overall, contactless cards and mobile wallets received a boost following the pandemic outbreak, with more than three in four global consumers believing that contactless was a cleaner way to make payments.
Cards and digital wallets continued to lead in E-Commerce amid COVID-19
As another consequence of the outbreak, consumers confined to their homes have been making more purchases online. E-Commerce payment method rankings in the top markets covered in the yStats.com report remained largely unchanged, with cards and digital wallets leading across a large number of countries. At the same time, as new online buyers emerged or experienced digital shoppers were buying on new websites, they also tried new payment methods, as revealed by an April 2020 survey.
Payment companies to benefit from the shift to digital as a result of the pandemic
Finally, the yStats.com report points to e-payment service providers as winners of accelerated digitalization amid the COVID-19 outbreak. Total payment revenues are projected to shrink in 2020 due to global economic recession and decline in travel and in-store transactions. However, in the long term, the changes in consumer payment behavior taking place during the outbreak are likely to benefit companies such as PayPal, Adyen, and Stripe. Already in 2020 PayPal noticed a surge in online shopping transactions and added 7 million new active users in April 2020 alone.