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The Future of Mobile Payments in a Post-COVID-19 World – ReadWrite

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The Future of Mobile Payments in a Post-COVID-19 World - ReadWrite


The payments sector has been remarkably dynamic for some years now: dizzying valuations, double-digit growth rates, and an ever-increasing speed of technology advancement on a scale barely experienced in any other industry. We have seen the coronavirus fully transform consumers’ shopping habits, drive retailers to the verge of bankruptcy, and shine a spotlight on the value of digital capabilities, all of which have served as an enormous catalyst in an already fast-moving payment industry.

The Future of Mobile Payments in a Post-COVID-19 World

Many people think that everything is now changed — but we have no reason to think that this new normal is here to stay. However, the changes will only advance further, with far-reaching implications on business strategy for players along the entire payments value chain.

Consumer payment methods are evolving at a rapid pace, reshaping payments all over the world.

This has been particularly evident during the COVID-19 pandemic, as transactions have gradually moved online as stores have been forced to close. Overall, the ways we pay are affected by our cultures, habits, innovations, and the technology available to us.

Digital Payments

In the light of the COVID-19 pandemic, the digital payment industry is booming and fundamentally changing. The crisis has changed people’s views of payments and financial services, with cash use decreasing and contactless adoption promoted by several countries. This shift to a cashless society affects all aspects: retailers, merchants, consumers, governments, financial institutions, and service providers.

As per Market Research Future (MRFR), the global mobile payments market is anticipated to reach USD 3,300 billion at a CAGR of 32% from 2017 to 2023 (forecast period). In today’s market, the mobile payments market is predicted to have a high growth potential.

For day-to-day transactions, mobile payments are a cashless medium.

A technology that allows users to make instant cashless payments using their smartphones. According to the study, the significant driving factor for the mobile payments market is the technological advancements that are occurring in today’s world. The adoption of advanced technologies such as near field communications (NFC) is increasing its popularity.

NFC allows users to connect two electronic devices, such as smartphones, by simply bringing them close to each other. Furthermore, other driving factors include the ease of use, secure approach, speed, and offers associated with it.

According to the Worldpay Global Payments Study, the growth of mobile payments will continue to be the biggest factor in consumer payment in 2020, making shopping simpler than ever and already leading e-commerce payment preferences with 42% of spending in 2019—up from 36% in 2018.

Personalized Service for Customers

As we all know, in addition to innovation, the commerce and banking industries are working hard to have a plethora of payment methods that are customized based on the needs of the consumers, both online and in-store.

Will cash continue?

Although Deutsche Bank assumes that cash will continue, the next decade will see rapid growth in mobile payments, leading to a decrease in the use of plastic cards. Over the next five years, mobile payments are projected to account for two-fifths of in-store transactions in the United States, quadrupling the current amount.

Mobile payments, which range from retailer-specific applications to wallets provided by financial institutions, device manufacturers, and technology platforms, deliver convenience and protection to customers and businesses worldwide. In 2020 alone, over one billion shoppers used mobile payments.

Similar growth is anticipated in other developing countries; however, different countries will experience varying cash and plastic card shrinkage levels. In emerging markets, the impact can be felt much earlier. Many consumers in these countries are making the switch from cash to mobile payments without ever having used a plastic card.

Generation-Z – today’s children and young adults – would also have a huge effect on the future of payments.

This technology-savvy generation, born and brought up in a mobile-first world, accounts for nearly 26% of the global population. Learning how to navigate the world in the age of “fake news” and getting their digital lives bombarded with messages of dubious quality and authenticity, Gen-Z wants more personalization, better quality, and greater performance from businesses.

Brands that want to win over Gen-Z must also appeal to their digital, flexible, and mobile-focused payment preferences. The ubiquitous smartphone is quickly becoming the new wallet of choice for this generation. Many customers opt to store their favorite cards in their phones rather than carrying physical cards. This is causing major shifts in global point-of-sale payment acceptance, which has risen from 16% in 2018 to 22% in 2019.

 China is the Market Leader in Digital Wallets

We can learn a lot about the future of payments (particularly during the pandemic) from developments in China, which is building a world-class mobile payment infrastructure. There, the value of online payments accounts for nearly three-quarters of GDP (71%), nearly double the proportion in 2012. Today, just under half of all in-store transactions in China are made using a mobile phone, far above levels seen in other developed markets (25% in Germany and 24% in the U.S.).

Mobile payments now account for 22% of global point-of-sale spend in 2019 and are predicted to account for nearly a third (30%) of customer payments over the next five years. The increasing share of mobile payments adoption will be driven primarily by the steady decline in the physical usage of credit cards, debit cards, and charge/deferred debit.

 Impact of COVID-19 Pandemic

COVID-19 is projected to have a major impact on the mobile payments industry. Contactless payments are thought to be more hygienic and safer. This trend is being driven by players in the commerce ecosystem who claim that contactless transactions improve safety and health. Compared to pre-COVID-19 projections, global contactless adoption was expected to rise by 6% to 8%, with an additional 110 million contactless payment cards expected to be released in 2020.

Mastercard’s global transactional data

Furthermore, Mastercard’s global transaction data and market analysis show a substantial rise in the use of mobile payments. As per the poll results, the number of mobile payments at supermarkets, groceries, and pharmacies during the March 2020 lockdown as a proportion of all face-to-face card payments rose by 25% compared to the previous year.

It’s cleaner to use contactless — that’s evident

Mobile payments are now used by 79% of people worldwide and 91% in the Asia Pacific, citing protection and cleanliness. The data reinforces how people search for alternatives in stores, choosing a secure and fast tap to check out over dealing with cash, pens, and keypads.

Even now that the coronavirus pandemic is beginning to abate — contactless cards and mobile payments are increasing in the United States and Canada, according to the results of an April 2020 survey.

During the pandemic, almost one-third of US customers used mobile payments for the first time, and the majority intend to continue using mobile payments after COVID-19. Mobile payments in the United States are predicted to more than double between 2020 and 2024, and contactless card payments are also rising.

Conclusion

The COVID-19 pandemic has had a huge effect on our social and economic well-being. Nevertheless, it is also true that it has been one of the most powerful forces of global digitalization.

Digital payments, particularly mobile payments, have risen as a reliable way for businesses and enterprises to operate in the post-COVID-19 new normal.

After discussing the effect of COVID-19 on all payment industries, one thing is clear: if any company wants to survive the pandemic — and all of the other “things” that may come down on “human-existence-pipeline —  it must use mobile payment methods.

All companies must provide their customers with easy, convenient, and socially distancing-friendly forms of payments.

Image Credit: tim doublas; pexels; thank you!

Politics

RUSSIA’S DEFAULT IS A REALITY AS GRACE MONTH IS OVER

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ValueWalk


Russia’s default has finally arrived on its sovereign debt in foreign currency for the first time in more than a century. Moscow has been unable to pay the interest on two bonds in dollars despite having enough foreign exchange reserves to do so. Investors assure that they have not received payment after the grace month.

Russia’s Default

Russia is showing the consequences of the sanctions the West has massively imposed on it after the war against Ukraine.

 

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For months, the country has managed to find ways and shortcuts to wade through the measures that tried to isolate the government of Vladimir Putin and make the country fall into technical default. In the end, the West has achieved its goal, albeit somewhat later than expected.

Although Russia had the capacity to meet this payment, leading economic indicators —the composite PMI sank in March and remain below 50, indicating that the economy is contracting— reveal that the country is facing one of the major economic crises of recent decades.

With double-digit inflation and several leading companies on the way out, Russia will face a deep recession and perhaps years of economic stagnation.

The one-month grace period expired on Sunday on around $100 million of trapped interest payments due May 27, a deadline that is considered an event of default if not paid in the correct currency, according to Bloomberg.

Data

Russia’s default is also backed by other data. The International Monetary Fund (IMF) reveals that the Russian Government had a debt of around $40 billion in hard currency at the end of 2021 —a relatively small amount.

Although the total foreign debt exceeds $470 billion, only part of that amount is in foreign currency and a smaller part is still a liability to the Russian Government.

This is a clear symptom of the rapid transformation that the country is facing, both financially and economically. Russia will have to go on without the foreign capital flows that have historically helped finance investments in emerging countries.

The nation’s Eurobonds have been trading on the secondary market at very low levels since early March, while the central bank’s foreign exchange reserves remain frozen. Russia’s largest banks are cut off from the global financial system, leaving the country in isolation.

Published First on ValueWalk. Read Here.

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Take Inspiration From Trending and Successful eCommerce Businesses

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Take Inspiration From Trending and Successful eCommerce Businesses


Believe it or not, online shopping has become a massive trend nowadays, and its popularity is increasing daily. Of course, we were already in the era of digitalization, but this entire pandemic situation has made eCommerce industries flourish more than expected in the last few years.

Nowadays, everything is digitized as people buy food, groceries, cosmetics, clothes, and even electronic gadgets online. This digital revolution has made it easier for creative founders to convert their dreams and ideas into a waking reality.

Old ways and patterns of handling businesses are changing every day, and business owners need to adapt to the fluctuating market trends. And in this, some trending eCommerce businesses have taken this eCommerce industry to a whole new level. They are ruling and conquering like a boss.

Here in this blog, we will be discussing such inspiring eCommerce businesses. So, keep reading to find out more and cope for the better.

What are The Types of eCommerce Businesses?

E-commerce businesses are not limited to one particular business model. Instead, there are various sorts of eCommerce business models as per their business offerings. So have a look at some of the highly prevalent eCommerce models.

  • Business to Consumer (B2C): The process of selling from business to customer comes under B2C type E-commerce.
  • Business to Business (B2B): The buying and selling process between businesses comes under the B2B type of E-commerce.
  • Direct to Consumer(D2C): This new idea of selling directly to end customers without the involvement of any retailer comes under D2C type E-commerce.
  • Consumer to Consumer (C2C): Consumer-to-consumer sales on platforms like eBay, Etsy, Fiver, and many more come under C2C type E-commerce.
  • Consumer to Business (C2B): An individual selling their services to different businesses comes C2B type E-commerce.

Examples of Successful E-commerce Businesses

1. Warby Parker

Warby Parker is popularly known for producing designer, reliable and inexpensive frames for eyeglasses. An MBA student, Neil Blumenthal, and 3 of his friends launched this eCommerce company in 2010. They proposed the idea in 2008, and took nearly two years to implement.

Their idea of business was something very essential at that period because Luxottica (Another eyewear brand) was one of the few companies that used to sell designer and reliable frames, but they were costly as compared to Warby Parker.

Warby has a free try-on policy with free shipping and numerous return offers, and this is what the brand has adopted to stand out from the crowd and appeal to its customers.

2. Leesa

An online Mattress retailer is helping people sleep better and comforting their sleep cycle. The whole idea behind this business model was to help people realize the importance of sleep and how an adequate amount of sleep can increase their productivity and quality of life.

Their first-ever mattress was “Universal Adaptive feel.” It was so flexible that it could easily adjust to all body types.

The 100-night free trial policy worked well for their customers and made the business model a huge success. Leesa had traditional showrooms at first, but with time they also opened online stores.

3. Modcloth

ModCloth is an eCommerce company launched in 2002, selling women’s clothing worldwide. They sell fun and quirky clothes that are not so exclusive but are comfortable and budget-friendly.

Everything about their store is creative and exciting – which customers nowadays love. The copies describing their clothes are also fun to read because every product has a name and story behind it – now, this is something very catchy.

ModCloth became a brand within a few years of its launch because of its targeted marketing strategy. They know who their target audience is and what requirements they have. Knowing this has made their business reach exceptional heights within a short period of time.

4. Amazon

Mostly we know Amazon was launched in 1995 as an online bookstore and has been flourishing since then. Now amazon is not limited to books anymore because now it sells almost everything you can think of. From groceries to clothes and even jewelry, Amazon has it all.

Right now, Amazon is one of the largest eCommerce stores by revenue worldwide. Though amazon started with no competitors, now it has Walmart as one of its biggest competitors. Last year Amazon made a revenue of $470 billion.

Amazon has adopted a stellar marketing strategy, which is targeting the right customer and offering products at comparatively lower rates.

5. Shopify

Shopify is a SaaS (Software-as-a-service) company that provides all the tools needed by a business to run its eCommerce business smoothly. It helps them with website building, marketing, payment processing, financial tracking, and everything in between.

It is a tech infrastructure that supports more than 2 million merchants and various operations ranging from mom-and-pop businesses to global brands. Shopify made $389 million in revenue in 2016 to $4.6 billion in revenue in 2021.

The profitability of Spotify has been improving with time because, just like every SaaS business, it has also scaled up.

6. LARQ

LARQ is a business model that makes self-cleaning water bottles that are reusable, rechargeable, and also have some advanced features. For example, it has UVC technology used to eliminate viruses & bacteria from water bottles.

LARQ has the initiative to provide clean water to everyone. They also raised $1.7 million for the same. In addition, LARQ donates 1% of its earnings to help maintain clean water worldwide.

The product was so unique and exciting that it attracted numerous customers. As a result, many environmentalists and aware citizens switched to these LARQ bottles and saved their money from buying single-use water bottles.

7. Beer Cartel

Beer Cartel, as the name suggests, is Australia’s number one beer subscription service. It is said that some ideas sell themselves; the same was the case with this one.

Beer Cartel sells beers from all around the world to their subscribers at their doorstep. This online store gives people the freedom to select their unique beer bottles at a price better than traditional stores.

One of the significant reasons for Beer Cartel’s success is that they offer exclusive taste under budget. In addition, they have a wide range of varieties that keeps their customers interested and coming back.

8. Berlin Packaging

Berlin Packaging is well known for sourcing, designing, and even distributing containers and closures for companies like fortune and various family-owned startups.

They have always provided products at a lower cost to their customers to increase the overall efficiency of their enterprise. One interesting fact about it is that it is not a new startup; it is 80 years old, in fact. But Berlin Packaging has somehow still managed to bring their customers the latest and top-quality beer.

They started this eCommerce business model to keep up with the times, which worked out well for them.

9. Bonobos

With the introduction of eBay, Bonobos knew that the eCommerce business was getting more competitive with each passing day. So, they introduced a unique business model targeting only a super-specific audience.

This strategy of narrowing down to a particular audience helped them make loyal customers who also flourished their business in the long run. Bonobo’s success made everyone realize that focusing on the competition is not good for your business’s health.

They should focus on the value they provide to their customers, and they will reach greater heights of success.

10. TOMS

The name of the company seems fascinating, right? Well, so is their initiative. TOMS is an eCommerce company that sells its customers quality shoes that are reliable, comfortable, designer, and inexpensive.

What separates TOMS from other similar eCommerce is that with every transaction, they will help one in need. Yes! Not only this, but they also run various social media campaigns with hashtags like #withoutshoes and many more to stand out from the crowd.

Everything about their business model is catchy and interesting, making it easier for them to drive more traffic to their online shop.

What are the Biggest Benefits of eCommerce?

Shopping in the comfort of home: eCommerce has made shopping easier and more convenient for our customers. Buying and selling things is a child’s play nowadays. As a result, our purchases are simpler, faster, less time-consuming, and not so hectic.

Markets are globalized: Now, you can shop from anywhere around the world at the convenience of your home. The impact of eCommerce on the planet can easily be visible. There are no limitations or barriers to buying from a different state or country.

Building startups is not so expensive anymore! Yes, in this era of digitalization, anyone can set up their online store at a meager cost. In addition, the operating cost is minimal because both buyers and sellers are now digital.

Conclusion

Technologies are evolving rapidly because of this, eCommerce businesses have to see a lot of changes frequently.

If you have an eCommerce business that is not growing as expected, you must adapt to new business models that add value to your customer’s life and your e-commerce services (my business: krishaweb dot com).

Image Credit: Provided by the Author; Thank you!

Parth Pandya

“Nothing Is Impossible” – is a quote that guided me to climb up the toughest peak of my professional journey. Having a great zeal for excellence and ambitious nature to reach the peak, leads me uninterrupted to provide the best content to all the visitors. I like to read and share contents which are related to Technology Solution and Digital Marketing.

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What Does the G7 Russian Gold Ban Mean for Gold Stocks?

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Gold Ban Mean for Stocks?


The G7 plans to announce a ban on Russian gold imports. But does that really matter for investors? While there hadn’t been an official Russian gold ban until now, this news isn’t exactly a surprise to the industry. Today, we’re seeing that lack of reaction in gold prices.

Typically, a ban on imports for a particular commodity sends prices soaring higher. Just look at what happened to oil after Russia invaded Ukraine. As it pertains to gold, prices also initially ticked higher this morning, with the futures opening up by under 1%.

However, it has now turned lower on the day, as have the VanEck Gold Miners ETF (NYSEARCA:GDX) and the VanEck Gold Miners ETF (NYSEARCA:GDXJ).

Does the Russian Gold Ban Matter?

This latest decision does matter. However, it will have a limited impact on the global gold market and gold-mining stocks. Warren Patterson, Head of Commodities Strategy at ING Groep NV (NYSE:ING), had the following to say:

“The impact from a ban on Russian gold imports by G-7 nations is likely to be fairly limited, given that the industry already took steps to restrict Russian gold […]It looks as though its largely symbolic.”

Russia has the world’s fifth-largest gold stash according to the World Gold Council. However, it only exported roughly 5% of the world’s gold supply in 2020. A bulk of those exports — over 90% — went to the United Kingdom, a G7 member. Still, Russia will likely find buyers in China and India.

In actuality, the buying pool may shift, but it will not completely evaporate.

How Does This Affect Gold Stocks?

At this point, the ban does not seem to have much of an impact on gold stocks. There’s multiple reasons why this is the case.

  1. The industry seems to have largely prepped for such a ban.
  2. Russia is not that large of an exporter of gold.
  3. The efforts from central banks to raise interest rates and strengthen currencies is likely playing a more important role in regards to precious metal prices.

Ultimately, a Russian gold ban certainly doesn’t hurt gold prices — if anything, less supply is a bullish catalyst — but right now that catalyst is not reverberating through the market. However, removing Russian supply from the market will be a modest positive for gold miners.

Published First: InvestorPlace. Read Here.

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