This IDC Perspective covers the potential impacts of COVID-19 on consumer payments and recommends actions to be taken by issuing banks and merchants. There is a perception that traditional payment methods, including cash and cards, carry potential disease risks. Consumers are expressing a desire for reducing physical interaction while making payments. Changes are already underway to ensure that participants in the payments value chain can meet consumer and merchant desires for minimizing contact in the transaction process. As part of this process, electronic payments, in the form of contactless cards, mobile contactless, and app-based card-not-present payments, will capture a larger share of the overall volume. When the current crisis has abated, many consumers will maintain their new payment habits, accelerating the ongoing shift away from cash.
According to Aaron Press, research director, Worldwide Payment Strategies at IDC, "COVID-19 is forcing participants across the payments ecosystem to rethink key parts of the transaction process, including technology, protocols, and risk. The shift is rapid and ongoing and will create permanent changes to the industry."
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