E-commerce and contactless payments are expected to see an unprecedented push in the post-COVID world, indicates data and analytics firm GlobalData.
“Once a convenience but now a necessity, online shopping keeps the economies running during the COVID-19 crisis while also helping to control the spread of the virus. The pandemic-induced surge in e-commerce from the existing shoppers and an influx of new consumers, notably for grocery, food delivery, health and other supplies, has accelerated the digital payment adoption that was sluggish and varied by country until 2019. At the same time, consumers see contactless payment methods as the safest bet to pay in-store,” said Ayushi Tandon, fintech analyst, GlobalData.
The COVID-19 pandemic has indeed brought a paradigm shift in the payments industry. While cash payments became a thing of the past due to cash being considered as a potential carrier of the virus, various types of e-commerce and contactless payments gained traction in the wake of lockdown imposed across several countries. The trend will continue in the post-pandemic environment to transform the payments ecosystem, states GlobalData.
E-commerce players offer several payment options
The pandemic not only transformed the way consumers shop but also how they purchase. With the increase in online shopping, e-retailers are competing to offer various types of payment gateways, such as:
Redirects, which takes customers to the payment page of a paytech company to complete the transaction.
Checkout on-site and payment off-site, allows payment on the retailer site, but the payment processing happens at the facilitator’s back-end.
Direct on-site payment gateway, allows e-commerce sites to handle both payment and processing without any help from third-parties. For instance, Amazon offers Amazon Pay to enable users to checkout instantly on-site. Shoppers can also use digital wallets, or net banking to complete the checkout.
Contactless payments on rise
Quick response (QR) code and near-field communication (NFC) are two widely used contactless payment technologies that witnessed a strong boost during the pandemic.
QR code payment emerged as the most popular as it does not require traditional infrastructure such as cards, payment networks, merchant accounts and payment processing terminals. NFC uses near-field communication technology to exchange data between readers (payment terminals) and payment devices (smartphones having digital wallets).
While China’s WeChat Pay and Alipay rely only on QR codes, popular mobile wallets such as Google Pay, Samsung Pay and Apple Pay support both QR codes and NFC payments. At par with the providers of digital wallets, payment card companies Visa and Mastercard also introduced chip-based contactless cards to enable close-range payments using NFC technology.
With the wide acceptance of contactless technologies amid COVID-19, biometrics-based payments through the face and touch recognition will become a routine in the future to address any security concerns with the current methods.
“Albeit the total payment volumes are anticipated to take a severe hit in 2020 due to losses in travel and in-store retail segments, growth will be resumed in 2021 backed by the overall shift to e-commerce and contactless payments enforced by the protracted crisis,” added Tandon. “Under such circumstances, fintech companies are better positioned compared to banks that lack digital capabilities to quickly scale up in line with the growing demand. Nevertheless, the environment is ripe for bank-fintech collaboration to offer superior and cost-effective payment solutions to customers as well as gain their trust amid growing fraud in e-commerce.”
How much technology is too much technology? Tech has inevitably become asApril 15, 2021 | By Shruthi Nair
According to a report by the United Nations, the fashion industry accountsFebruary 18, 2021 | By Shruthi Nair
UAE-based Carrefour announced its theme and plans for Ramadan 2021. The brand
Locally owned supermarket Spinneys celebrates 60 years of doing business in the
UAE-based Carrefour will become the first retailer in the region to offer new levels
The Organic Farmers’ Market is back in Bay Avenue for its 12th
UAE-based Lulu Group recently inaugurated its first-ever all-female staff store in Jeddah,
Jones the Grocer, the gourmet grocer and cheese retailer launches the Jones
UAE-based Al Maya Supermarkets is hosting a two-week food festival at select
Locally-owned supermarket Spinneys has launched its ‘Power of Plants’ initiative in the
Carrefour UAE has launched “Cookit Yourself” — a curated recipe box created
UAE-based Al Islami Foods, one of the largest frozen food companies in
Marks & Spencer’s plant-based range now offers over 25 vegan products including meat-free
World’s largest fully integrated online brand in fresh fish and meat e-commerce
Who isn’t a sucker for discounts? Customers today are spoiled for choice
The various e-commerce and virtual retail stores that cater to different product
A private helicopter carrying the chairman and managing director of Lulu Group,
According to a new report by GlobalData, the penetration of online sales
In a 180-degree turn from 2020, retailers’ expansion plans are outpacing plans
Research by GlobalData found that eBay’s job postings in the US and
London based luxury retail and branding experts, House of Luxury (HOL), is celebrating their
Data presented by Fraîcheur Paris indicates that beauty products accounted for 22% of the
Tighter restrictions on hotels, restaurants, shopping malls and entertainment venues on account of
British fast-fashion retailer Primark says it has no plans to sell its
All hotels and restaurants have been directed to temporarily hold entertainment activities
The new Dubai Gold Souk is “very much on track”, according to