The Impact of the COVID-19 Outbreak on Digital Payments

Man paying bill through smartphone

Before the COVID-19 outbreak, digital payments involved swiping or inserting the card into a credit card machine so it could read the chip. After the pandemic started to spread, the impact of the COVID-19 outbreak on digital payments presented new challenges for businesses to limit contact with credit card and debit card terminals.

Contactless Payments Grew

One noticeable change was that more and more merchants upgraded their payment processing equipment to accept contactless payments. Contactless payments include tapping chip-enabled credit cards and debit cards on the machine or by using your smartphone’s wallet and associated card and holding it near the machine to process the payment.

e-Commerce Grew

Brick and mortar stores shifted their sales models to online and e-commerce sales. They started offering curbside pickup and delivery services for a large number of products and items. For example, numerous grocery stores across the country switched to home delivery or curbside pickup to limit the number of people shopping in stores.

Online Shopping Increased

The number of people shopping online increased significantly. Since many retail and non-essential stores were closed for several months, the only way to shop at these businesses during physical store closures was by shopping online.

Online Ordering for Food from Restaurants Grew

While many chain restaurants already had online ordering apps, other restaurants did not before COVID-19. Since restaurants could not allow people to dine-in, they had to get creative. The way restaurants have adapted is by rolling out new online ordering apps for delivery, drive-thru, or curbside pickup.

Request for Electronic Payments from Service Businesses Grew

Service businesses moved to electronic invoicing and payment requests as a result of the pandemic to maintain social distancing and limit contact with customers. Two popular methods are sending a request for payment via text and via email. Customers simply click the link to be taken to a secure payment gateway.

The Use of Cash Payments Has Decreased

Many businesses stopped accepting cash for payments, especially non-essential businesses. Essential businesses like grocery stores highly discouraged using cash, yet still would accept it as a payment method.

QR Codes Made a Resurgence

QR Codes never seemed to catch on as mainstream until COVID-19. Businesses started using QR codes in various manners to encourage self-service payments, scannable digital payments, and other contactless self-service options for their customers.

For example, many restaurants did away with menus when they were allowed to reopen for dine-in service. In their place were scannable QR codes at the tables for customers to scan and use to order their food.

Automated Telephone Payments Grew

Qr code payment

Another area where digital and contactless payments saw growth from the COVID-19 pandemic was in automated telephone payment systems. Many businesses enabled automated payment options via the telephone, especially for customers who were not used to making payments through an app or online.

As you can see, the impact of the COVID-19 outbreak on digital payments resulted in significant increases in digital payment methods. For assistance with online credit card processing, contactless payment processing, and related services for digital payments, please feel free to contact Adept Payments at 888-732-3838 today! Let us customize a solution that best suits your business needs and objectives.

Leave a Reply

Your email address will not be published. Required fields are marked *