With the world encircled around the global pandemic of Covid-19, leading to no resort but to practice the social protocols of hygiene and distancing, the effect on the businesses across the globe has been catastrophic. Where on one hand, businesses are stretching every nerve to keep themselves afloat; the burden of conducting simple day to day activities like accepting payments from customers has become a sore concept too. The adverse effects of the situation are trickling down to the major industries, plunging them into chalking out newer ways to conduct business.
Over the recent years, the digital payments industry has recorded growth in leaps and bounds with the estimation to become a USD 1 trillion market by 2023. The virus has just added fuel to the fire, with more and more businesses adapting to digital means of payment acceptance. Looking back to the last four years, digital payments have incredibly grown from a mere 5 per cent to a whopping 30 per cent when backed by demonetization and government’s drive towards making India a cashless, digital economy.
The impact of the virus, if talked in terms of sectors, could be highly fluctuating. Where on one hand it has adversely trickled down to most businesses like Travel and Tourism, Food and Hospitality, Retail, etc., it has also turned out to be a favorable bet for Digital Streaming industry, Ed-Tech and Gaming. Nevertheless, businesses across the nation have corroborated with digital payments service providers to ensure their functioning, in reciprocation, dramatically resulting to be a boon for the digital payments arena.
Evaluating the effects of the pandemic, the UN Conference on Trade and Development estimated that the global economy might gather a setback of USD 1-2 trillion in 2020, with India alone anticipating a blow of around USD 348 millions.
Turning point in the Digital Payments Industry
Since the currency notes have been labelled as one of the prime sources of transmission of infection, the country has witnessed a major rise in the usage of online modes of payments to conduct business. Payment modes like UPI have spread their reach far and wide, catering not just metros but Tier-I and Tier-II cities as well, which in comparison to demonetization appears to be a more gradual and permanent shift.
Campaigns like ‘India Pay Safe’ from National Payments Corporation of India are undeniably the stepping stones towards boosting and acquainting larger population with the benefits that tag along with the adoption digital payments.
The fear of coronavirus’ impact on the global economy may be uncertain but our imperative to balance short-term crisis while thinking about the future prospects can brace ourselves for the new normal. When peeping through the looking glass, the road ahead for digital payments might be bumpy for a period but, it could allow us to exit the crisis with a newer way of concocting a customer-focused, efficient and resilient payments industry catering the needs of all the sectors alike.
The debate around Coronavirus being a boon or a bane will probably encircle us for some time now. Although, it has become evident that the Digital Payments Industry is here to grow and snowball in the coming years, as more and more business has realized to integrate themselves with online platforms and are making the switch, insignificantly. Now is the time when you should also acquaint your business with digital payment solutions. Integrate with Atom– the best in the industry digital payments platform which provides tailor-made solutions for every type of business and equip them to accept payments online, seamlessly.