Electronic payments are definitely becoming a bigger trend in the payment world. More and more companies and customers are opting for electronic payments over regular cash and checks, but what is next? Here is a quick look at what you can expect from electronic payments in the future.
Firstly, we know that COVID-19 greatly impacted the world, much more than many of us thought. One of the biggest changes COVID-19 had on us, particularly electronic payment systems, was the huge influx of sign-ups and registrations to online payment methods. For instance, PayPal, Venmo, Paxum, etc., all experienced a huge increase in people signing up for their platforms.
Many of these people signed up for online payment systems because they wanted to find different ways to pay and transfer money without meeting people in person since COVID-19 encouraged people to social distance. Therefore, these electronic payment systems quickly became the “norm” for most of us, especially since people found it to be more convenient. It is very likely that the majority of payments in the future will be electronic payments.
Since electronic payments may soon become the standard for us, we may see a future of a cashless society very soon. Cash payments were the most popular option in the past. However, people are finding it more convenient and safer to opt for electronic payments to pay for things. Places like groceries, pharmacies, gas stations, etc., are implementing more methods to accept electronic payments for their goods and services, so people may use their cards and phones to pay for things rather than physical cash in the future.
Many people around the world do not own bank accounts, but that may change soon. More people are getting bank accounts for online banking, or they are using alternate platforms like PayPal to pay for things online and transfer cash. This is a great way for people to easily pay for things without leaving their homes.
For instance, let us look at the developing market of South America. It was estimated that about 85% of the transactions there were cash payments. Another statistic showed that about 39% of the people in South America owned bank accounts. It is likely the statistic was low because many people did not trust their financial institutions. However, being able to view their bank accounts through their phones and accessing alternate payment options will likely change that, especially after COVID-19. The developing market now saw a rise in customers for alternate payment methods and online banking.
India is also making huge strides in its electronic payments. Only around ⅓ of their population have access to connect to the internet, with about 20% of their population not owning a bank account. However, they had a surge of customers because of COVID-19, seeing a huge increase in electronic payments. The Indian government created a target of at least 1 billion electronic transactions each day, which it will likely reach very soon.
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