Digital Payments : Pre and Post COVID

In 2018, Global Payments Report made some bold predictions in reference to the eWallet payments. They predicted that the eWallets will dominate eCommerce payments by 2022 and will be nearly 47 percent, an 11 percentage point rise from 2018. They also predicted that eWallet will be second to Debit Cards in POS payment trends at 28 percent.

All these predictions were well before COVID.

Now, 10 months into 2022 and in a post COVID world, I think we are in a good position to see how digital payments have panned out. If we refer to the latest Global Payments Report which estimates the 2021 data has put Digital / eWallet payments for eCommerce at 49 percent globally. 2 percentage points more and a year earlier.

For the POS payment trend Digital/Mobile wallet now leads the segment and is the preferred mode of payment at 29 percent. Again 1 percentage point more and a year earlier.

Is COVID the only reason for this digital payment dominance?

As we tried to answer the question, prima-facie COVID was an obvious catalyst. During COVID as businesses were forced to operate in limited spheres, a lot of them moved online to survive and started to accept digital payments. It was during this time that wages and government benefits also saw a transformation from cash to digital. But all this would not have been possible if we did not have the adequate infrastructure and technologies to support this.

In our research we found out that over the last decade a lot of right things had happened which created the foundation of this digital payment explosion.

2. Smartphone Ownership

3. Rise of Super Apps and Payment Applications

Apart from these major pillars which dealt with inclusion, ownership and access to modes to enable the digital payments across the world one key factor which played the major role was the Government led Digital Transformation push.

However, now the question remains will this sustain?

About KBX Digital

At KBX Digital we use server-less technology to auto scale micro-services to serve millions of customers.



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