Although, overall consumer payments boost will slow as lockdowns restrain consumer activity
According to GlobalData, consumer behavior is expected to accelerate the shift from cash to e-payments.
The report highlighted that online, cashless and mobile transactions would see long-term growth since people change their spending behavior to avoid contact with the disease.
The report found that mobile wallets also have an opportunity for growth since they can be used at the POS without the need for entering a PIN. This way, they are presenting themselves as a safer payment method compared with contactless cards. Furthermore, it enables e-retailers to attract new customers.
According to the statement, consumers that have never carried out online before will now have to cope with this payment method. It provides e-retailers with a significant opportunity for the long-term boost by involving previously non-engaged customers.
We’ve reported that the Bank of Canada encourages retailers to keep accepting cash so that Canadians have access to the goods and services they need. The Bank believes that refusing cash purchases will put a burden on businesses that depend on cash, thus have limited payment options.