As coronavirus lockdowns closed shops and confined people to their homes, the world seemed to be coming to standstill. Yet people still needed to make purchases, whether for essentials like food and medication, computing equipment to enable home schooling, or kit for hobbies to while away the long hours at home. For digital payments and e-commerce providers, the world closing down allowed them to flourish to an even greater extent.
Mastercard reported a 40% increase globally in contactless payments in the first quarter of 2020, specifically in grocery stores and pharmacies. The value of these transactions is low, with 80% recorded at under $25, a sum Mastercard notes would previously have been dominated by cash payments. The types of transactions contactless is being used for gives an insight into how customers are changing their behaviour and moving away from cash.
