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COVID-19 has had a significant impact on the way we live, work, and shop. As social distancing measures and lock downs force consumers to stay home, digital payments have become an essential tool for businesses and consumers alike. Here are some key statistics on the growth of digital payments before and after the pandemic:
- The global digital payments market was valued at $4.1 trillion in 2019, and it was projected to reach $7.6 trillion by 2024.
- According to the World Bank, the number of people with bank accounts who made or received digital payments increased from 52% in 2014 to 69% in 2017.
- During the first months of the pandemic, the use of digital payment methods increased by around 20% globally.
- In the United States, digital payments increased by 40% from March to April 2020, according to a report by ACI Worldwide.
Here are some reasons why COVID-19 has accelerated the growth of digital payments:
- Social distancing measures and lock downs have made it more difficult for consumers to shop in physical stores, leading to an increase in online shopping.
- Cash transactions are seen as less hygienic during a pandemic, leading consumers to prefer contactless payment methods such as digital wallets and mobile payments.
- Businesses have had to adapt to the new reality of the pandemic, with many shifting their focus to e-commerce and digital sales channels.
- Governments have encouraged the use of digital payments to help reduce the spread of the virus, with some offering incentives and subsidies to businesses that adopt digital payment methods.
The growth of digital payments has significant implications for businesses and consumers alike. For businesses, it offers a range of opportunities to streamline operations, reduce costs, and improve customer experiences. By accepting digital payments, businesses can offer customers more convenient and secure ways to pay, which can help to increase customer loyalty and drive sales. For consumers, digital payments offer a range of benefits, including convenience, security, and flexibility.
In conclusion, COVID-19 has accelerated the growth of digital payments, transforming the way we pay for goods and services. Businesses that fail to adopt digital payment methods risk falling behind their competitors and missing out on valuable opportunities to improve customer experiences and streamline operations. Consumers, meanwhile, should take advantage of the convenience and security of digital payments, while remaining vigilant against potential fraud.