While the pandemic has hit every industry, affecting growth and profitability, Fintech managed to stay profitable and also provide solutions to other industries for a digital transformation and thus. As a result, businesses had the opportunity to adopt new systems and processes to drive forward in this severely restricted environment and at the same time enhance customer experience.
In consequence, COVID-19 has rapidly changed the rate of digitalization forwarding Fintech as one of the main flagbearer of further development. and the reason for it is customer experience. Customer experience is one of the main drivers of expectations for rapid innovation, digital-first technology, and seamless accessibility. Customer experience, amongst all other indicators, is impacting the rate of digital payments adoption and provides greater insight for businesses in acquiring new consumers, and the most important thing - to reduce business costs.
Consequently, sectors using Fintech solutions to power their products and services have managed to move forward while others wilted around them.
Hospitality business
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One of the most seriously affected sectors is the hospitality business - pubs, restaurants, and cafes have been greatly impacted by the pandemic and the lockdown. In such a situation, businesses are obliged to search for new ways to make a profit and satisfy the consumer experience. As for the hospitality business, one of the ways out of the crisis is the shift to online orders and takeaways. As millennials and Generation Z are more flexible to changes and new technologies, according to a Statista report, 60% of people in the age of 18-34 increase their use of food delivery services due to the coronavirus (COVID-19) pandemic in Great Britain in March 2020.
In such a situation consumers also changed their payment habits, leading to the rise of mobile wallets and contactless payments, while the usage of cash declined drastically by 50% in March 2020 according to Accenture. Fintechs help in this situation by providing solutions and tools for payments acceptance, such as modern portable POS terminals for frictionless contactless payments acceptance, or different digital solutions to accept touch-free payments.
Retail
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The retail sector is one of those severely affected by Covid-19 and has experienced a drastic shift. According to Accenture, cash usage in the UK rapidly declined by 50% in 2020 and this figure is going to negatively change defining the pandemic as a pivotal moment in replacing payments by cash. Back in March 2020, when the first lockdown began, the UK government released its retail sales report which measured the volume of retail sales for that month. The report found that sales fell by 5.2% in March 2020, which then fell further by a record 18.1% in April 2020, when the lockdown was at its peak. However, in the course of positive changes brought by and large by the vaccination drive, both customers and retailers gained the confidence to return to a semblance of normality and continue with their businesses in a new reality.
Taking into account the vulnerable conditions prevalent around us, Guavapay offers solutions that may allow your business to adapt to rapidly changing circumstances and new customer preferences. Guavapay provides full assistance on the POS hardware and software solutions to meet ever-changing business requirements and ensures a smooth path to compatibility and compliance with payments. Moreover, Guavapay offers its customers POS terminals enabled with NFC technology that enables businesses to accept mobile and contactless card payments, which is especially important in a pandemic when contactless, touch-free, and cashless payments are becoming a matter of necessity.
E-commerce
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COVID-19 has not only changed but also accelerated the immediate future of e-commerce and its respective market. The use of digital technology and e-commerce has become the business norm. Consumers have quickly responded to the changing circumstances and shifted their vision towards benefits offered by the digital world and especially the world of e-commerce. According to Statista, in June 2020, global retail e-commerce traffic hit a record 22 billion monthly visits, with demand being exceptionally high for everyday items such as groceries, clothing, but also retail tech items. Customers quickly appreciated the convenience of ordering products and things in the comfort of their homes. The adoption of the “new normal” brought up by E-commerce will continually evolve as fintech startups disrupt the technologies in the post-pandemic situation enabling faster and more flexible technologies for the convenience of customers, who are obliged to embrace new realities. Following these conclusions, it’s obvious that E-commerce secured itself a prominent place in the finance world, capturing a prominent market share. Successful e-commerce requires advanced technology and a sophisticated approach. As customer experience across platforms is key to conversion and retention, frictionless and seamless payment services make the crucial part of e-commerce company advancement. Diverse payment methods, secure and reliable payment checkout, transaction speed - everything should promote timely and personal advantages to customers and highlight the cost-effectiveness nature of shopping online. Mobile banking and e-wallets broaden the borders of payment capabilities.
Guavapay provides a full set of services for E-commerce making it easier for merchants to continue doing business in this difficult time. First of all, to streamline and protect online payments Guavapay introduces Guavapay Ecommerce Payment Gateway (EPG)Guavapay EPG enables interaction between e-commerce merchants and an online transaction processing system. The functionality of the Guavapay system module supports the most advanced services in e-commerce accomodating to global trends and an increase in the volume of transactions.
The main characteristic of EPG is PA-DSS compliance. It adds security, reduces chargebacks and frauds. If your clients make payments via different payment methods, Guavapay enables you to seamlessly accept cash flows from various payment methods such as Union Pay Express, WeChat Pay, and AliPay, Paypal, Mastercard, UnionPay International payment, and in return provide a positive customer experience.
