The COVID-19 pandemic has altered consumer behaviour in many ways, and one area which has witnessed a significant change in the last few months is the payments space, where the shift to digital payments has seen a big acceleration.
A study by Mastercard Research across 15 markets, including India, has shown that consumers across the world are moving away from cash and opting for contact-free and digital payment options.
In fact, seven out of ten respondents said that their shift to digital payments will be permanent, and nearly 50 percent of consumers plan to use less cash even after the pandemic subsides.
The rise in e-commerce also bodes well for digital payments. Data compiled by Mastercard shows that e-commerce spending in the United States grew by 93 percent year-over-year in the month of May. A similar surge has been witnessed in other countries as well.
While digital payment transactions are moving higher, average credit card spends has declined considerably, partly because of the many restrictions imposed by global lockdowns but also because of the general weakness in the global economy.
To discuss all of this and more Shereen Bhan spoke to Ajay Banga CEO of Mastercard and Chair of the International Chamber of Commerce.