It’s no secret that COVID-19 is having a major impact on the global economy and customer behavior. Although the overall economic impact is negative, there are some industries that are reaping benefits from the pandemic. One of which is digital payments.
Zelle, one of the largest U.S. instant payments service, has seen double-digit growth with enrollment growing by 17%. In addition, their payment transaction value increased by 60% year over year. Zelle also recorded $133 billion sent on its platform in the first 6 months of 2020. This is a huge increase from last year’s $83 billion.
The PayPal owned giant, Venmo, also recorded extraordinary growth. Their net payment volume for the second quarter amounted to $37 billion, equating to a 52% year over year growth.
The Middle East is no different. A recent study conducted by Mastercard showed that 82% of customers in the UAE prefer to use contactless payments, with 64% confirming that the Corona virus has led them to use less cash.
COVID-19 has increased the reliance of businesses on cashless payments. This is driven by the consumer’s need for a contactless transaction, as cash is seen as a potential transmitter of COVID. The current surge in the use of digital payments is here to stay.