The crisis that has left all physical interactions aside is benefiting some unusual businesses. Mastercard is one such business that has seen an increase in touchless transactions up to 40%. The major contribution to such growth is mainly due to people resorting to online shopping. Whereas even in situations where people have to go out and buy groceries physically, they prefer to deal with credit cards. This is due to their skepticism that Coronavirus can transmit through currency notes as well, even though there is a lack of substantial evidence and support of such claims.
Regardless, countries with a deep banking network and credit card reliance are going for touchless transactions in an increased capacity. Following this, the President of Mastercard Inc, argues that such habits will last even after the epidemic.
A complete shift in trend
Coronavirus has shifted entire trends from one slope to another, as many businesses that were previously in the shadows are rising big time. Touchless transactions and online payment solutions are seeing an increase in demand, where once people preferred to deal in cash. Even countries like India and Pakistan are adopting online payment solutions.
In other instances, the mobile industry is taking huge losses, whereas online meeting platforms are increasing their user base ten folds. Schools and universities are also opting for online classes instead of physical ones due to the virus. Moreover, restaurants and hotels are non-operational due to nonexistent tourism and travel, but grocery stores are jamming while selling more than ever.
Mastercard seeing an increase in the touchless transactions is just an after effect of social distancing and isolation as people have to go to either a bank or an ATM to get paper money. Both of these are preferred breeding ground for the Coronavirus. Moreover, many stores themselves are advising people to refrain from handling paper currency. As the virus continues to spread in April and May, the touchless transactions will keep increasing.
Source: FoxBusiness, Investopedia