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Shopping trends after coronavirus pandemic: How do consumers prefer to buy and pay?

With the state of alarm and the confinement over in Spain and other countries, many might think that we will return to normality, but everything indicates that the post-coronavirus era will be very different from the previous one. Many areas of daily life have been affected, such as work methodologies or behaviors when it comes to socializing and also consuming.

The new normality has a new type of consumer, the post-coronavirus consumers have changed their habits and consumption patterns during confinement and many of them will stay. The fear of catching the disease and the comfort discovered with alternative purchasing methods have led to the emergence of a new post-coronavirus consumer profile, which has already been attributed a series of very specific characteristics. Let’s see them:


Post-coronavirus consumer is more attentive to promotions and offers

The purchasing power of consumers has dropped during confinement. Although they have not left home and have barely spent money, millions of Spaniards have lost their source of income or have had to subsist without a job. It is for this reason that many non-essential sectors have noticed a drop in demand and that the consumer has begun to look at prices with a magnifying glass and to value any promotion or offer that helps them save a few euros, and this trend will continue, at least , as long as the economic situation is not the same as it was before the crisis.


Post-coronavirus consumers buy much more online

During confinement, the closure of most stores forced consumers to try online shopping. And not surprisingly, online sales have increased their results by 55% on average during the months of alarm and today (with all physical businesses already open) accounts for a third of total transactions in Western Europe. This has led many local producers and stores to digitize their business and have a greater online presence, and those who have not yet done so, have had to find alternative payment solutions such as link payment.


Post-coronavirus consumer chooses larger, infrequent purchases

Closely related to the habits we’ve seen above are the largest but infrequent purchases. This online purchase mode allows you to get better promotions and offers, save shipping costs and minimize the number of times the purchase process must be repeated.

And there is another related trend: the rise is the automated or subscription purchase, which consists of choosing a frequency in which certain products will come home and automate it so that you do not have to go through the payment process again. Many virtual businesses reward this type of purchase with discounts, which perfectly fits the interests of the company but also of the post-coronavirus consumers’.


Post-coronavirus consumer chooses innovative payment solutions

The cash withdrawal in Spain fell 68% during the month of March, at the beginning of the confinement. Interestingly, this has been the first crisis in which the demand for cash has decreased rather than increased. The fear of contagion has made online and contactless payment methods flourish, allowing zero contact and guaranteeing greater security. But at the same time, they are faster, more comfortable and safer payment methods, due to which everything points to the fact that the post-coronavirus consumers will continue to tend to prefer them over cash.


At PaynoPain we implement the necessary technology in any type of business so that it can adapt to the needs of the new post-coronavirus consumers in a simple, economic and fast way. Our Paylands payment gateway allows to respond to all the payment needs of users, in addition to many other advantages for the company.

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What role will online payments play in the new post-COVID-19 normality?

The health crisis caused by COVID-19 has triggered numerous economic and social changes that, in all likelihood, will largely remain in the new postcoronavirus normality. As we have talked about several times lately, businesses that didn’t previously have an online presence have been forced to virtualize in order to continue offering service to the confined population and not having significant economic losses.


For their part, those businesses that didn’t have an online store or the possibility of creating one at the moment, have found an intermediate solution in our pay-by-link service, through which their customers have been able to order and pay by contacting them directly by different online channels. Ultimately, it’s a way to take the digital leap with minimal investment, an affordable option for any business.


As expected, during the confinement online purchases are estimated to have increased by 55%, being the only way to continue providing goods to citizens while maintaining social distancing and security measures established by the authorities. But it’s also anticipated that this number will never return to what it was before quarantine, initially for fear of contagion and, in the long term, for the total acquisition of the new buying habit.


On the other hand, businesses that have been able to remain open, such as supermarkets and grocery stores, have seen the use of card and contactless payments increase significantly, due to consumers’ fear of using cash because of its large bacteria transmission capacity (not viruses). Not surprisingly, the cash withdrawal fell 68% in March. Contactless payments have been especially favored by the bank’s decision to increase the payment limit hereby from € 20 to € 50 without the need to insert the pin into the dataphone. This decision has been given by the recommendation of the European Banking Authority, with the aim of avoiding physical contact with the terminals as much as possible and thus reducing the possibility of contagion.


All these measures and new habits acquired reaffirm a trend that had been going on for years, the trend towards the total digitization of payments and the residual use of cash. And, although the classic means of payment will rarely disappear, the truth is that giving the maximum possible payment options to the customer is today as the only way to avoid losing sales. For this reason, at PaynoPain we work to create innovative, very secure payment methods that meet all needs.


Sources: Ecommerce News, Europapress

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Is the ewallet technology the most efficient tool to boost financial inclusion?

Expert post: Fernando Gregori (CHANGEiT Manager)


Currently can easily be perceive a notable increase in financial operations by electronic means and a decrease in the use of cash. There are even countries like Denmark where electronic transactions have reached the point of being almost mandatory, since the government seeks to reach a cashless society in order to save on financial and administrative costs. And within these transactions, it should be noted a great increase in use that the smartphone currently enjoys to perform them. But this progressive trend is only possible in countries where access to banking has been simple for decades and thanks to the proliferation of new technologies, especially mobile phones.


The advantages of a population with high bankarization rates are many, among others the general decrease in the use of cash. Something that may seem irrelevant, but that improves security levels, especially in areas where the risk of theft is greater. You also get better traceability and easier to control fraud and tax evasion. In addition, access to regulated banking products such as loans, avoiding the usury of non-formal entities.

With a high level of financial inclusion both citizens and government enjoy many advantages, and if there is also a prominent use of digital banking, the citizen enjoys access to financial products 24 hours a day and 7 days a week.


However, there are still a large number of countries and areas of the world where the level of bankarization is weak and access to such facilities and financial products is difficult. This is the case in many countries in Latin America, Africa or even Asia, where access is not easy or there are high rates of ignorance or distrust in the financial system. In order to achieve the correct inclusion of these people, an approach to this system through financial education is needed first. Subsequently the appropriate tool is required to facilitate the transition. It is at this fundamental point that financial technologies, using mobile as the main tool, can contribute to this approach and provide a key solution to enhance financial inclusion.


And this is where CHANGEiT can make a difference as a facilitating tool. In PaynoPain we have managed to create and provide a solution that allows citizens who only have access to cash to enter the financial system through something as common as the mobile phone. CHANGEiT can be the mobile banking of any bank, so that financial institutions in any of those countries can market a digital system. In addition, our technology allows to integrate other types of external systems and offers the possibility of being used as an electronic wallet or eWallet. In this way, the cash could be introduced into the system and used as virtual money to make transfers between users, payments in shops or even the payment of services, in a comfortable and secure way.


Financial inclusion is the main objective of CHANGEiT, which is why it has the capacity to operate worldwide. And to allow adaptation to the peculiarities of each geographical area and market, the level of customization of the tool is almost unlimited, working under a white label and with wide possibilities such as integration with bank cores or other external systems such as the association with VISA cards or MasterCard or even the blockchain. A complete bankarization tool, configurable for any brand and accessible to everyone.

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