Current climate for digital payments
The coronavirus pandemic has continued for a long period and its impacted everyone’s lives in one way or another. It has affected a wide variety of industries and sectors but it has had a substantial effect on the payments industry – by accelerating the adoption of digital payment methods.
In this blog, we are going to cover how digital payments have been affected and what the current climate of digital payments is and relate this back to businesses, as at the end of the day this is what is going to be useful information to you.
So what’s been happening?
To analyse the climate for digital payments, it is important to look back at historical data: In 1987 debit cards were introduced to the UK, By 2017 these debit card payments had overtaken cash as the most prominently used payment methods.
In the space of 30 years, these methods have overtaken cash because they are useful, easy to use, and convenient. How much further will the adoption of digital payments go now that there are safety concerns around the usage of cash. Furthering the relegation of cash is the fact global organisations such as the World Health Organisation have come out recommending that people use digital payment methods during the coronavirus pandemic.
Digital payments are dominating the market due to Covid, this can easily be proven by various sources such as Mastercard who say that 66% of all transactions are now card and contactless, or from Royal Mint who have stated they won’t be creating any more 2p or £2 coins due to reduced demand, and they have predicted they now have a supply that will last over a decade!
What you can do next
With the increased usage, and recommendations from WHO – amongst others – this has meant that it has never been more important than now for your business to accept these payment methods. Your business could be left behind, especially as technological advancements are happening currently with digital payments. Some of these are smart devices that have features and benefits that can help specific industries – giving a competitive advantage for the businesses that are using them.
The market was changing pre-Covid but due to the global impact this has sped the process up across the board, the UK was advanced in the payments market anyway and card payments had overtaken cash as the most common payment method in 2017. Now the climate has progressed even further, ATMs have reduced in number; customer perceptions have changed all pointing toward continued domination of digital payments in the UK.
One thing is clear, digital payments have increased since their introduction but with recent events, this is going to influence increased adoption across the world.
Therefore, if you are a business not accepting these payment methods you need to look into these straight away – if you are already accepting digital payments, your work isn’t over, amazing new technology and devices are becoming available on the market. This means you need to research and investigate these devices as they can help you reduce costs, increase sales, and improve your business’s efficiency.
If you need help call a reputable payments service provider to discuss your options, call NetPay on 0333 311 0200.