This archive report was first published on 4 August 2020.
On August 4, 2020, the world was still reeling from the effects of the Covid-19 pandemic. Governments and global health bodies were scrambling to contain the spread of the virus, and individuals were taking precautions to protect themselves.
One of the key areas of focus was daily monetary transactions. With the increased use of contactless payments, people were adopting cleaner and safer methods of payment. This shift was not only driven by the need for safety but also by the innovators who saw an opportunity to meet the consumers' needs.
Central banks in countries like China and South Korea were taking proactive measures to disinfect banknotes and quarantine others to contain the spread of the coronavirus. However, despite scientific studies showing minimal risks in Covid-19 transmissions via cash payments, people remained apprehensive.
Players in the payment services industry saw an opportunity to reap the benefits of this consumer-driven demand. Innovators like M-Pesa, Safaricom's globally celebrated innovation, were at the forefront of this shift. However, there was a vast challenge and opportunity to be offered by banks and merchants through players like De La Rue as manufacturers, and card companies such as Visa and MasterCard in ensuring security of such payments.
Building consumer confidence will be key to the sustainability of this model in the post-Covid-19 world. Contactless payment systems, including smart cards, debit cards, and credit cards, or other devices, including smartphones and other mobile devices, that use radio frequency identification or near-field communications or any bank mobile application, are alternatives for the consumer bracket who use plastic monies compared to those using liquid cash payment methods.
As Mr. Mikwa, a communications practitioner and research fellow at The New School University in New York, noted, contactless payments will save humanity time, provide a world of infinite possibilities, hygiene, and efficiency in financial transactions. This will be revolutionary, and nobody can afford to be left behind in this global ecosystem of payment trends.
