Mobile Payments help People During the COVID-19 Pandemic
As corona virus continued to make our life difficult with every passing day, it also knew how to stop the growth of various industries and effected the economies badly. When other industries like fashion, handicraft, automobile and electronic were finding hard to survive the pandemic the Digital Payment industry made profits like never. It was majorly because when the whole world was finding it hard to go out of their house and maintain social distancing the digital payment method came into their rescue. The contact-less payment was need of the hour which everyone needed badly be it a shopkeeper to sell the things or the consumer to buy it. As per the recent report titled “Global Digital Payment Market: Current Analysis and Forecast (2020-2026)” Owing to the sudden COVID-19 outbreak demand for contactless payment, the market is expected to witness high growth and is expected to reach a market size of US$ 65.3 billion in 2020.
In 2020 more than 70.3billion real-time payments were processed worldwide there was a surge of 41% compared as compared to previous year. Mobile payment apps saw an exponential growth of 40.6%. Many countries like Brazil, Mexico, and Malaysia where people were mostly dependent on cash payment are now adopting the option of digital payment quickly. The global share of electronic transactions in 2020 went up from 7.6% to 9.8%. According to Juniper Research apple pay grew from 140 million users in 2018 to 227 million users in 2020 and GPay from 39 to 100 million in 2020. This clearly shows that as corona virus started spreading globally people started depending on digital payment options more than ever.
- Philippines: According to a report published by Central Bank of Philippines there was a boom in digital payment as the cases in the country started growing. According to a report there was a surge of 5000% as compared to previous year. PESONet which is an inter-bank fund transfer service in Philippines. It allows clients to electronically transfer high value funds. PESONet did 15.3 million transactions, it was 376% more than the previous year. Instapay which is another mobile payment app in Philippines, its transactions grew by 459%. Many of the digital payments is done for paying bill is and groceries as of November 2020.
- India: In the past few years, India has seen a lot of changes in its financial sector. After demonetization took place in India people started using mobile payments but when lockdown started in India due to the virus mobile payments became a necessity not only in the 1 or 2 tier cities but throughout the country. For the year 20-21 the government has set a target of 4,630crore rupees for digital payments. Manish Patel who is the founder and CEO of Mswipe said that “the pandemic has fulled tremendous and large-scale adoption of digital payments and digital commerce in India from metros to 4 and 5 tier cities”. He further said that in Mswipe transactions have grown from 13-30% between January to December 2020. According to RBI in the month of September mobile payments crossed 20,919 cores, net banking touched 28.22 core and Rs 34,36,124 core transactions. RBI has also decided to increase the limit of contactless transactions to Rs 5,000. This step by RBI is surely gonna encourage more people to use digital payment option. Reserve Bank of India Governor Shaktikanta Das also urged Indians to use the contactless payment option as much as possible due to increasing number of Covid-19 cases. He further said that RBI and the government are trying new ways in which digital and mobile payment options can be used by many people.
- Southeast Asia: According to a research conducted jointly by Google, Temasek and Bain & company found that in Indonesia, Malaysia, Singapore, Thailand, Philippines, and Vietnam in the year 2020, for the first time 40 million people came online. After this revolution 70% of the populations in this region is online. According to Mastercard report in the coming years more people in Asia pacific are likely to switch towards digital and mobile payment and QR codes not only in the urban area but also in the rural area. This clearly because of pandemic.
- America: In America total transaction value of digital Payments is projected to reach a record growth of US$2,098,858 million in 2021. Experts say that Covid did have a major impact on this. In America 76% of people use PayPal followed by amazon pay which is used by 24%.
Mobile payments have made our day-to-day life a bit easier in this pandemic by allowing us contactless money transfer anywhere we want. According to reports digital payments might hit a new high of $6.6 Trillion in 2021 which is a 40% jump in two years.
Author: Tinku Rai
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