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The impacts of COVID-19 on the payment industry has been less severe as compared to other sectors. However, this does not mean that the payment sector is completely immune due to the pandemic and its effects. 

For instance, with lockdown and social distancing in place; the travel and transport industry has experienced a tremendous decline that also affected all payment service providers who were associated with those sectors. Additionally, the economic uncertainty due to the pandemic has led people to spend money very cautiously which resulted in reduction of consumer spending. This reduction takes effect in both payment processing services as well as card issuers who get their revenues from interchange fees.  There is also a reduction in the use of cash in many parts of the world. Thus, the pandemic has made a complete transformation of consumer shopping behaviour which pushed merchants on the verge of bankruptcy. This situation has wide-reaching implications on the payment industry as a whole. 

Here are the impacts of COVID-19 on the payment industry:

1. Mobile money 

Due to the pandemic, there is an increase in preference of  mobile banking and contactless payment methods instead of cash. Not only consumers but governments and authorities have also leveraged mobile money to offer affordable financial services along with practical challenges. This has made mobile money emerge as an effective and social-distancing friendly way to inhibit the spread of the virus.

2. Card-based payments

Everyone is avoiding the use of cash during this pandemic. People would have to slowly adjust in the new norm by adopting card and cashless payments over cash. Even the convenience stores are slowly adapting their offering to ensure that every customer can easily use credit and debit cards for making safe and seamless payments.

3. International remittances

International remittances have been severely hit by the pandemic. The main reasons behind this decline is the fall in wages of migrant workers as remittances are used mostly by migrants to send money. Remittances play a huge role in uplifting poverty in millions of lower and middle-class families in developing countries as they have enhanced their nutritional income. The sudden fall will have an adverse effect on this population of people. 

4. Customer loyalty and rewards

There has been a shift in the customers’ shopping behaviour in this pandemic. The major factor that caused a transition in customers’ shopping behaviour was product availability. COVID-19 has brought a unique situation in front of all the retailers. They would need to find an effective way to maintain their customer loyalty. Therefore, adopting mobile wallet solutions and services which come with robust customer loyalty programs is a foolproof way to ensure customer loyalty. This helps them to offer personalised rewards and loyalty points, thus skyrocketing their profits by retaining, engaging and attracting new customers.

Lastly, this pandemic has certainly impacted the payment industry as a whole. If any businesses would like to survive the pandemic, they must adopt digital payment methods in order to offer consumers a simple, convenient, and social-distancing friendly mode of spending.

The new in-trend — Augmented Reality in shopping and retail. AR shopping enables customers to engage with brands and products via digital experiences that allow them to try on, try out, interact, or personalize their product virtually. Different brands are starting to implement this fresh way of bringing shopping to a more realistic manner into the home of consumers. 

BUT HOW DOES IT WORK?

Sephora

You may be familiar with this trendy and feel good makeup brand among the Millenials. Sephora introduced the ‘Virtual Artist’ through their app and it uses facial recognition technology to allow customers to digitally try on products. Through a face scan, customers can try different shades of the designated product and instantly purchase it, if it’s to their liking. Customers can also take up makeup tutorials as the app will digitally overlay a simulated look on the customer’s face. 

IKEA

IKEA’s app – IKEA Place, implements augmented reality by allowing you to test out furniture virtually. By taking a picture, the app automatically measures the space, then provides recommendations on furniture that fits in the space.

Nike

Nike Fit, Nike’s feature app, allows users to determine their true shoe size. To enable the app’s functionality, users will have to point their phone’s camera to their feet and the app will determine their shoe size. The shoe size is then saved in the app for future in-store purchases, as the employee could simply scan the QR code in the app and retrieve the customer’s shoe size. 

Amidst the pandemic, with the rise in online shopping, more consumers have trusted their retail needs online as compared to before, and this also means that retail brands and online shopping platforms need to upgrade customer experience as well as the user interface in order to satisfy the needs of consumers. 

AR shopping has definitely helped elevate the needs of consumers to test the physicality of a product. Although most products still cannot be touched through the screen, with AR, brands are strengthening consumers’ trust in terms of product quality and brand engagement, by allowing consumers to experience the product in a simulated format. According to Worldpay’s survey, 95% of people in China have used virtual or augmented reality in the past three months. The research also highlights that 84% of Chinese people believe VR/AR to be the future of shopping. To conclude, AR shopping is indeed here to stay and we will certainly see the immense growth that it will bring for retail businesses, especially after the pandemic.  

There is a dated mentality that working from home or remote working is not as effective as working in the office, but recent studies have shown this to be false. With the current COVID-19 pandemic, almost everyone has been forced to convert their home into their office, and it can be a difficult transition. But fret not! There are several ways that have been proven to increase productivity when working from home. 

1. Be aware of your daily tasks 

It’s difficult to complete your work when you don’t know what exactly you have to do. The best way to ensure that you tackle all your tasks is by creating a list of tasks, a to-do list, or a schedule. Not only will that keep you on track, checking off each completed task will give you a sense of accomplishment, encouraging you to work towards your next assignment.

2. Setting boundaries 

This can be taken both literally and figuratively. In the literal sense, having a specified working area, such as a study room or a quiet corner, can help you focus on your work. This can be especially helpful for households with multiple members where things can become chaotic. Do not stay in this working space when taking breaks or doing leisure activities! Separating your work and lounging space will help you associate the former with productivity.

Figuratively, it’s important to set boundaries for yourself. When there is no one to hold you accountable, it can be easy to spend working hours watching Netflix or browsing social media. Spending allocated working time on other activities only means pushing back your entire schedule, it’s a domino effect! On the other hand, without fixed working hours, some have the tendencies to overwork themselves, jeopardizing their work-life balance. So it is important to set boundaries for yourselves; allocate adequate time for both work and leisure. 

3. Dress for the job

Technically, no one would know if we stayed in our pyjamas all day. However, doing so can impede on our productivity as it disrupts our sense of normalcy. Staying in loungewear can not only make it easier to slack off or get distracted, but it can also make it difficult to differentiate working hours from off-hours. As crazy as it seems, even just putting on a pair of not-so-comfortable jeans can help put us into work mode. 

Basically, a routine is vital to create a distinction between working hours versus times to relax. Our productivity doesn’t have to suffer while in isolation, there are always ways to overcome these hurdles. However, while it is important to stay productive during these times, it is also important to stay connected with your colleagues, friends, or family.

Rozella Marie is a singer, songwriter and voiceover artist originally from Kota Kinabalu, Sabah. After having her Tiger Jams winning single ‘Home to You’ remixed by popular Scottish electronic band CHRVCHES in 2016, her hit single ‘XOXO’ garnered 14 New Music Friday playlists on Spotify. She is one of the very few Malaysians who have been featured on the New Music Friday playlist in the US. Besides making music, she is the founder of True Complexion, a social awareness platform that celebrates inclusion and diversity. Rozella is also an Obama Foundation Asia-Pacific Leader, an Eisenhower Global Fellow and a TEDx speaker.

Bella Kuan is a digital content creator and entrepreneur with a strong following online.⁣ ⁣ On this episode of the Hello Mentor podcast she shares some common misconceptions about being an influencer and content creator as well as her success story.