COVID-19 has influenced the way consumers make payments for goods and services. This is according to figures released by the Bank sector.
An uptake of contactless payments
The latest report by the Bank and Payments Federation shows that there was an increase in the use of credit or debit cards to make payments amid the pandemic. The month of May, in particular, saw the largest increase in contactless payments. This showed that despite the lockdown, consumers were spending more.
Cash avoidance a result of fear
What could have caused consumers to prefer noncontact payments to handling cash? Consumers were afraid to contract the coronavirus through touching money. So, it forced them to switch to credit or debit cards. As a result, the contactless payments spend per transaction jumped up in April leading to huge expenditure on goods and services.
February versus May noncontact payments
Though there was an increase of contactless payments in May, they were much lower compared to February last year. This was due to the pandemic lockdown restrictions. However, the payments for goods and services through credit or debit cards is likely to improve amid the easing of COVID-19.
A cashless society
Undoubtedly, the pandemic has changed the way consumers make payments. As fears of contracting the disease were rising amid the restrictions, contactless payments to the amount of €600 million were realised by retailers. This latest development has the potential of leading to a cashless society. For the latest developments in contactless payments, read this article.