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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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How do millennials prefer to pay? And the generation Z?

A lot has been written about millennials, also called generation Y. They are those young people born between 1981 and 1993, who have grown up with technological changes and the popularization of the internet. And it‘s precisely because of this technological exhibition that has led them to have very specific characteristics as consumers and the most digital preferences when paying.

However, against all odds, the generation Z has arrived having very different preferences from their predecessors. These young people, born between 1994 and 2010, have already grown into the technological boom, when more information was already available on the dangers to which they were exposed, which has also given them specific characteristics but, as we have said, very different from those of millennials.

These two generations are currently the main target of consumer marketing, as they combine all people who are currently between 19 and 38 years old, that is, those who begin to have economic capacity to consume independently and those who consume the most (in Spain, from 38 to 44 years old).

 

How do millennials prefer to buy and pay?

Millennials are the ones who buy the most online, especially through mobile phones. They don’t like to pay on credit, but they do want to have different forms of payment to choose from, the debit card being their favorite.

They like to be able to compare and choose the best option in each case, so they value the opinions of other customers and any data that helps them in their decision making. They’re demanding in their online purchases, so it’s best to offer quality products and discounts whenever you have occasion.

 

How do you prefer to buy and pay the Z generation?

Although they have some points in common with the previous generation, in this case we see a fundamental difference: far from preferring to make purchases through the smartphone or even the computer, the youngest choose physical stores to achieve greater immediacy and an experience of purchase shared with friends. The debit card (physical or digital) is also their favorite choice to pay.

In common with millennials we find that they are also very demanding and like to compare, so the way to get their attention with a website and get the sale will be to offer them an offer that they cannot refuse: quality products, with fast delivery, endorsed by other buyers and, if possible, at the best market price.

 

But, if both generations have something in common, it’s their requirement in the level of security and trust that an online business should transmit. Therefore, it’s very important to put effort into all the details that will make your site offer the right image.

Choosing a payment gateway that’s integrated into the website, has a good security system and doesn’t require many steps to complete orders is essential. This is the case of  Paylands payment gateway.

 

If you want more information on how to make your online business more attractive to millennials and Z generation, find out about Paylands through this form.

 

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