How Electronic Payments Have Changed In 2020

Consumers enjoy the safety features that electronic payments provide. Whereas, fear has largely caused consumers to refrain from using cash in 2020. Viruses that may be transmitted via polymer bills or coins are causing consumers to make behavioral changes when paying for goods at checkout.

About Electronic Payments

In 2020, retailers are noticing an uptick in card-based transactions. Regulators and various medical authorities are continuously reminding consumers about the benefits of frequent hand washing and avoiding contact with items that are often touched in public.

While shoppers might make less contact with door knobs, handrails and fixtures within public places, everyone who decides to finalize a purchase transaction will need to present cash or to complete an electronic payment method via a secured card reader.

As a result of Covid-19, many consumers are supporting merchants who offer touchless credit card processing.

However, businesses that aim to exclusively provide electronic merchant services could impair certain customers from making point-of-sale payments.

A shift to only accept credit cards or debit card payments might impact older consumers who prefer to pay with cash or eliminate support for individuals who are without banking resources, such as credit cards or debit cards.

Increased Credit Card Usage at the Point-of-Sale

Business owners are facing a myriad of financial hurdles and marketing challenges in 2020. Rising minimum wage requirements, coupled with a virus that spreads from close proximity to infected individuals compromises a merchant’s profitability and increases exposure to a variety of operating risks.

Therefore, many stores are operating with fewer cashiers on the frontline. Consumers who might ordinarily prefer face-to-face checkout experiences are increasingly self-scanning their goods at the point-of-sale.

A crisis can cause a lot of unexpected changes that become a way of everyday life.

Apparently, dipping a credit card or a debit card into an electronic keypad is faster and more desirable than stuffing a bunch of money into a bill acceptor.

Ecommerce Shopping with Electronic Payments from Home

When the Covid-19 pandemic began in 2020, consumers were advised to shelter-in-place for lengthy time frames or to remain quarantined for 14 days, if infected.

This degree of social distancing created an environment where shoppers purchased more goods online.

With fewer people going to visit local stores, ecommerce transactions markedly expanded for online giants, such as Amazon, Walmart, Best Buy and Whole Foods.

To obtain items for essential living and for splurges, as a result of being stuck in the house, consumers have confidently embraced online transactions via merchants that are equipped with secure shopping carts to process ecommerce credit card payments.

While in-store shopping is therapeutic for some consumers, the ability to place an online order versus waiting several weeks to purchase desirable items could ease the pain.

Business owners also benefit from card-based transactions.

Studies have shown that merchants typically realize higher sales transactions per customer when a credit card or a debit card is used instead of a cash payment.

Limited Contact is Required for Electronic Payment Transactions

Merchants who are set up to provide speedy checkout solutions are likely to receive an abundance of repeat business. Offering secured electronic payment methods, which allows seamless payment experiences can enable consumers to exit the checkout area at a faster pace.

Credit card processing systems that support contactless payments are being used more often as consumers are showing a willingness to venture out to stores that provide an environment for safe shopping transactions.

Summary

Business owners who are prepared to meet the needs of health-conscious consumers should be poised to thrive in 2020 and beyond.

Valued Merchant Services offers cutting-edge credit card processing equipment and the most competitive rates within the industry.

Contact us today to speak with one of our independent sales reps about reliable credit card processing services.

Menu