Call it deep impact. The wider repercussions of COVID-19 are becoming clearer as most industries now put into motion an array of continuity plans. Payments organizations should now act urgently to moderate the damage it does to their customers, their people, their partners, and their businesses. The focus of their actions will necessarily be short term, but many of the measures they take will lay a foundation for future sustainability and growth.
Life during a pandemic is not something anyone saw coming in 2020. With social distancing, these trying times have affected the way we go about our daily lives, avail healthcare, and make a living. The socio-economic impact has been well documented. While we are still confined to our homes, trying to keep safe from COVID-19, the ripple effects of the distress it causes are unavoidable. The pandemic has also devastated businesses across industries, including digital payments.
Digital payments have witnessed a steady rise and transformation since the ushering in of a new dawn in the ‘90s, and over time India’s growth trajectory with digital payments has been more prolific than many less-cash economies. However, in the current situation, the digital payments sector witnessed a decline of almost 30% in the transaction value, and recent data made available from National Payments Corporation of India attests to sharp decline observed in the months when lockdowns were initiated, primarily due to the impact on the travel, hospitality, and retail sectors.
The detrimental impact of COVID-19 on digital payments, although significant, is not lingering and the ecosystem is expected to evolve rapidly to help shape the post Covid-19 era growth. KPMG analysed the digital payments made before and during the lockdown in this thought-provoking industry report, which is replete with noteworthy observations, trends, and insights.
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