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The world’s situation changes every day, but one thing’s for sure, cashless payment is the way to go. According to a study by Visa, the COVID-19 global pandemic saw an increase in the number of people moving to this form of payment method especially when it comes to online shopping.
Since the pandemic started, the need to minimize physical contact in preventing the spread of the virus drove many people to adopt “cashless” into their vocabulary. From credit and debit cards to mobile wallets, to QR payments and bank transfers, people are opting for safer, more seamless, and convenient options when it comes to transactions.
Stay-at-home online shopping
Recent findings from the Visa Annual Consumer Payment Attitudes Study for 2021 show that the global pandemic greatly made an impact on cashless methods, most especially on mobile wallets and QR payments, which saw an increase in use for food and dining, retail shopping, and supermarket purchases.
The study also revealed that more than half of the 1,000 respondents also started shopping online for the first time due to the pandemic.
During that time, when most people were forced to stay home, many Filipinos took a turn to contactless transactions, with groceries and personal care items topping the list at a 46 percent.
Home office equipment and tools, which had a 41 percent , is next on the list as many Filipinos people started redecorating their homes and revamping their WFH stations during the onset of the pandemic.
While there is a decrease on spending on international trips (37%), staycations (39%), and domestic travel (41%) within the last two years, more than half of consumers are looking forward to splurging on travel post-COVID. 66 percent said they are likely to travel for leisure domestically in the next 12 months.
Is cash still king?
Visa noted that while cash remains to still be the highest medium of exchange, there is an increase in the number of cashless payment users. This is because people are seeking for safe and convenient solutions as more of them continue to prioritize their health and wellbeing.
For consumers in the Philippines, not only does contactless payment help to make seamless and safe purchases, including in preventing the transmission of the infection, but it is also a convenient way of tracking financial records. Now, it has become an essential solution for both consumers and producers.
According to the survey, more than 80 percent of consumers attempted to go cashless last year, with mobile wallets (64%), online cards (52%), card swipe or insert (44%), QR payments (31%), and contactless card (27%) as the preferred cashless payment options.
Additionally, 7 out of 10 consumers expect the Philippines to be a cashless society within the next 7 to 10 years.
Visa also notes that the past two years has seen a growth on consumers trying to use online payments for goods and services.
The use of contactless cards, or payment made by tapping your card on a reader, are also rising, with people using it on supermarket (16%), retail shopping (16%), food and dining (15%), overseas travel (12%), and petrol or gasoline (11%).
Road to a cashless society
Given these results, Visa believes that the COVID-19 pandemic has accelerated awareness and opportunities for Filipinos to explore payment methods that would ensure the health and safety of all. The company added that it will make contactless transactions more accessible to Filipinos, broadening its list of banking and merchant partners.